Sale of Subsidiaries

9 Months Ended

Oct. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale and Discontinued OperationsOn July 27, 2020, the Board determined to exit the Leasing Business, which comprises essentially all operations of the Equipment Leasing segment. As a result, the assets, excluding cash, and liabilities of the Equipment Leasing segment are considered held for sale and the segment’s operations are reported as discontinued operations as of October 31, 2020 and for all comparative periods presented in these condensed consolidated financial statements. The Company anticipates selling the discontinued operations within twelve months from July 27, 2020 in a single transaction, or multiple transactions, which may involve the sale of legal entities or assets.

The assets reported as held for sale consist of the following:


	October 31, 2020		January 31, 2020
Current assets of discontinued operations:


Accounts receivable, net	1,963		5,699

Inventories, net	359		605

Prepaid expenses and other current assets	141		227


Seismic equipment lease pool and property and equipment, net	2,977		8,382








Total assets of discontinued operations	$	5,440	$	14,913

The liabilities reported as held for sale consist of the following:


	October 31, 2020		January 31, 2020
Current liabilities of discontinued operations:
Accounts payable	$	71	$	884

Deferred revenue	18		34
Accrued expenses and other current liabilities	1,044		1,886
Income taxes payable	—		(74)






Total liabilities of discontinued operations	1,133		2,730

The results of operations from discontinued operations for the three and nine months ended October 31, 2020 and 2019, consist of the following:


	For the Three Months Ended October 31,				For the Nine Months Ended October 31,
	2020		2019		2020		2019
Revenues:
Revenue from discontinued operations	$	313	$	2,488	$	5,731	$	8,379
Cost of sales:
Cost of discontinued operations	263		1,752		4,389		6,266
Operating expenses:
Selling, general and administrative	1,146		1,305		4,322		4,195
Provision for doubtful accounts	—		—		470		—
Depreciation and amortization	43		41		128		136
Total operating expenses	1,189		1,346		4,920		4,331
Operating loss	(1,139)		(610)		(3,578)		(2,218)
Other income (expenses)	(75)		(8)		—		(114)
Loss on disposal (including $2,745 of cumulative translation loss)	—		—		(1,859)		—
Loss before income taxes	(1,214)		(618)		(5,437)		(2,332)
Provision for income taxes	(6)		(91)		(706)		(238)
Net loss	(1,220)		(709)		(6,143)		(2,570)

The significant operating and investing noncash items and capital expenditures related to discontinued operations are summarized below:


	For the Nine Months Ended October 31,
		2020		2019
Depreciation and amortization		$	1,771	$	3,651
Gross profit from sale of lease pool equipment		$	(1,326)	$	(987)
Provisions for doubtful accounts		$	470	$	—
Loss on disposal of discontinued operations		$	1,859	$	—
Sale of used lease pool equipment		$	2,010	$	1,415
Sale of assets held for sale		$	734	$	—

Purchase of seismic equipment held for lease		$	(110)	$	(1,938)

Sale of SubsidiariesIn February 2019, the Company completed the sale of its wholly owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. for total contractual proceeds of approximately $660,000 U.S. dollars of which the Company received approximately $240,000 in cash at closing and an unsecured, non-interest bearing two year note receivable in the amount of $420,000. The agreement also included a working capital adjustment of approximately $114,000 payable to the Company which was received in August of 2019. The note receivable was recorded as other current assets as of October 31, 2020 and as other non-current assets as of January 31, 2020. During the three months ended October 31, 2020 the Company received a prepayment of $125,000 related to the note.