Note 6 - Discontinued Operations

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note

6

 – Discontinued Operations

Heat Waves Water Management

During

December 

2019,

the Heat Waves Water Management business ceased operations. The decision to discontinue HWWM was made due to its history of net losses, declining revenues, and its failure to generate positive operating cash flow. In early

2020,

the Company began disposing of the HWWM assets and plans on selling off the remaining HWWM assets during the

fourth

quarter of

2020.

HWWM was previously reported in the Water Transfer Services segment, however, the Company redefined its segments during the year ended

December 31, 2019,

and Water Management Services is

no

longer a reporting segment.

Dillco

Effective

November 1, 2018,

the Dillco water hauling business ceased operations for customers. In

December 2018,

we held an auction for all of the Dillco fixed assets which resulted in a gain of approximately

$129,000.

Additionally, we recorded an impairment charge of

$130,000

related to land and building sold subsequent to

December 31, 2018.

The following table represents a reconciliation of the carrying amounts of major classes of assets and liabilities disclosed as discontinued operations in the Balance Sheets:

	September 30,		December 31,
	2020		2019
Carrying amount of major classes of assets included as part of discontinued operations:
Accounts receivable, net	$	-	$	175
Property and equipment, net		771		1,373
Prepaid expenses and other current assets		-		12
Right-of-use asset - financing, net		38		57
Total major classes of assets of the discontinued operations	$	809	$	1,617
Carrying amounts of major classes of liabilities included as part of discontinued operations:
Accounts payable and accrued liabilities		6		47
Lease liabilities - financing (current and non-current portions)		40		59
Total liabilities included as part of discontinued operations	$	46	$	106

The following table represents a reconciliation of the major classes of line items constituting pretax loss of discontinued operations that are disclosed as discontinued operations in the Statements of Operations: 

	Three months ended
	September 30,
	2020			2019
Revenue	$	-		$	899
Cost of sales		-			(828	)
Sales, general, and administrative expenses		-			(11	)
Depreciation and amortization		(6	)		(300	)
Other income and expense items that are not major		(1	)		-
Pretax loss of discontinued operations related to major classes of pretax profit		(7	)		(240	)
Gain on disposal of assets		-			14
Total loss on discontinued operations that is presented in the Statements of Operations	$	(7	)	$	(226	)

	Nine months ended
	September 30,
	2020			2019
Revenue	$	-			3,194
Cost of sales		(11	)		(4,298	)
Sales, general, and administrative expenses		-			(29	)
Depreciation and amortization		(19	)		(877	)
Other income and expense items that are not major		(2	)		6
Pretax loss of discontinued operations related to major classes of pretax profit		(32	)		(2,004	)
Gain (loss) on disposal of assets		92			(2	)
Total income (loss) on discontinued operations that is presented in the Statements of Operations	$	60		$	(2,006	)