Assets Held for Sale and Discontinued Operations

3 Months Ended

Apr. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale and Discontinued Operations

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 April 30, 2021 and for all comparative periods presented in these condensed consolidated financial statements. The Company originally anticipated selling the discontinued operations within twelve months from July 27, 2020, in multiple transactions, which may involve the sale of legal entities, assets, or a combination of both, but now anticipates completing the process within the next six months.

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

	April 30, 2021		January 31, 2021
Current assets of discontinued operations:
Accounts receivable, net	1,310		1,668
Inventories, net	47		352
Prepaid expenses and other current assets	340		150
Seismic equipment lease pool and property and equipment, net	2,389		2,151
Total assets of discontinued operations	$	4,086	$	4,321

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

	April 30, 2021		January 31, 2021
Current liabilities of discontinued operations:
Accounts payable	$	13	$	59
Deferred revenue	73		73
Accrued expenses and other current liabilities	915		831
Income taxes payable (receivable)	(29)		—
Total liabilities of discontinued operations	972		963

The results of operations from discontinued operations for the three months ended April 30, 2021 and 2020, consist of the following:

	For the Three Months Ended April 30,
	2021		2020
Revenues:
Revenue from discontinued operations	$	30	$	4,188
Cost of sales:
Cost of discontinued operations	373		2,484
Operating expenses:
Selling, general and administrative	342		1,700
Recovery of doubtful accounts	(443)		—
Depreciation and amortization	1		44
Total operating expenses	(100)		1,744
Operating loss	(243)		(40)
Other income (expenses)	(39)		3
Loss before income taxes	(282)		(37)
Provision for income taxes	(1)		(178)
Net loss	(283)		(215)

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

	For the Three Months Ended April 30,
	2021		2020
Depreciation and amortization	$	—	$	971
Gross profit from sale of lease pool equipment	$	—	$	(852)
Recovery of doubtful accounts	$	443	$	—
Purchase of seismic equipment held for lease	$	—	$	(110)
Sale of used lease pool equipment	$	—	$	1,414
Sale of assets held for sale	$	187	$	—