Note 2 - Assets Held for Sale and Discontinued Operations

12 Months Ended

Jan. 31, 2022

Notes to Financial Statements

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

2. Assets Held for Sale and Discontinued Operations

On July 27, 2020, the Board determined to exit the Leasing Business. As a result, the assets, excluding cash, and liabilities of the Leasing Business are considered held for sale and its results of operations are reported as discontinued operations as of January 31, 2022 and for all comparative periods presented in these condensed consolidated financial statements. The Company originally anticipated selling the discontinued operations in multiple transactions, potentially involving the sale of legal entities, assets, or a combination of both, within the twelve months ending  July 31, 2021. The Company now believes it will complete the process by  July 31, 2022.

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

	As of January 31,
	2022			2021
Current assets of discontinued operations:
Accounts receivable, net		177			1,668
Inventories, net		2			352
Prepaid expenses and other current assets		167			150
Seismic equipment lease pool and property and equipment, net		738			4,478
Loss recognized on classification as held for sale		(925	)		(2,327	)
Total assets of discontinued operations	$	159		$	4,321

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

	As of January 31,
	2022		2021
Current liabilities of discontinued operations:
Accounts payable	$	132	$	59
Deferred revenue		73		73
Accrued expenses and other current liabilities		507		831
Income taxes payable		241		479
Total liabilities of discontinued operations	$	953	$	1,442

The results of operations from discontinued operations for the twelve months ended January 31, 2022 and 2021, consist of the following:

	Twelve Months Ended January 31,
	2022			2021
Revenues:
Revenue from discontinued operations	$	878		$	5,747
Cost of sales:
Cost of discontinued operations		993			4,537
Operating expenses:
Selling, general and administrative		1,622			4,589
(Recovery) provision for doubtful accounts		(450	)		470
Depreciation and amortization		5			132
Total operating expenses		1,177			5,191
Operating loss		(1,292	)		(3,981	)
Other income		93			201
Loss on disposal (including $2,745 of cumulative translation loss)		—			(1,859	)
Loss before income taxes from discontinued operations		(1,199	)		(5,639	)
Provision for income taxes from discontinued operations		(307	)		(665	)
Net loss from discontinued operations		(1,506	)		(6,304	)

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

	As of January 31,
	2022			2021
Depreciation and amortization	$	5		$	1,830
Gross profit from sale of lease pool equipment	$	—		$	(1,326	)
(Recovery) provisions for doubtful accounts	$	(450	)	$	470
Loss on disposal of discontinued operations	$	—		$	1,859
Sale of used lease pool equipment	$	—		$	2,010
Sale of assets held for sale	$	6,198		$	1,506
Purchase of seismic equipment held for lease	$	—		$	(110	)