| Summary of financial results and balance sheet of discontinued operations |
The financial results of SumTotal are presented as Income from discontinued operations, net of tax on our condensed consolidated Statement of Operations. The following table presents financial results of SumTotal for all periods presented in our condensed consolidated Statement of Operations (in thousands):
|
|
|
|
|
|
|
|
|
Quarter to Date Results |
|
|
Fiscal 2023 |
|
Fiscal 2022 |
|
|
Successor |
|
Successor |
|
|
Three Months |
|
Three Months |
|
|
Ended |
|
Ended |
|
|
October 31, 2022 |
|
October 31, 2021 |
Revenues: |
|
|
|
|
|
|
Total revenues |
|
$ |
4,178 |
|
$ |
30,406 |
Operating expenses: |
|
|
|
|
|
|
Costs of revenues |
|
|
1,250 |
|
|
9,839 |
Content and software development |
|
|
956 |
|
|
5,975 |
Selling and marketing |
|
|
800 |
|
|
4,892 |
General and administrative |
|
|
67 |
|
|
668 |
Amortization of intangible assets |
|
|
— |
|
|
2,658 |
Recapitalization and acquisition-related costs |
|
|
1,056 |
|
|
280 |
Restructuring |
|
|
(159) |
|
|
2 |
Total operating expenses |
|
|
3,970 |
|
|
24,314 |
Operating income from discontinued operations |
|
|
208 |
|
|
6,092 |
Other income (expense), net |
|
|
2,223 |
|
|
50 |
Interest income |
|
|
— |
|
|
9 |
Interest expense |
|
|
(101) |
|
|
(513) |
Income from discontinued operations before income taxes |
|
|
2,330 |
|
|
5,638 |
Provision for income taxes |
|
|
1,115 |
|
|
(273) |
Net income from discontinued operations |
|
$ |
1,215 |
|
$ |
5,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date Results |
|
|
Fiscal 2023 |
|
Fiscal 2022 |
|
|
Successor |
|
Successor |
|
|
Predecessor (SLH) |
|
|
Nine Months |
|
From |
|
|
From |
|
|
Ended |
|
June 12, 2021 to |
|
|
February 1, 2021 to |
|
|
October 31, 2022 |
|
October 31, 2021 |
|
|
June 11, 2021 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
60,706 |
|
$ |
45,952 |
|
|
$ |
37,142 |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Costs of revenues |
|
|
19,027 |
|
|
15,555 |
|
|
|
13,838 |
Content and software development |
|
|
12,246 |
|
|
9,637 |
|
|
|
9,072 |
Selling and marketing |
|
|
11,507 |
|
|
7,432 |
|
|
|
7,539 |
General and administrative |
|
|
730 |
|
|
913 |
|
|
|
746 |
Amortization of intangible assets |
|
|
6,345 |
|
|
4,188 |
|
|
|
4,410 |
Recapitalization and acquisition-related costs |
|
|
1,609 |
|
|
377 |
|
|
|
297 |
Restructuring |
|
|
42 |
|
|
31 |
|
|
|
(127) |
Total operating expenses |
|
|
51,506 |
|
|
38,133 |
|
|
|
35,775 |
Operating income from discontinued operations |
|
|
9,200 |
|
|
7,819 |
|
|
|
1,367 |
Other income (expense), net |
|
|
2,681 |
|
|
345 |
|
|
|
(326) |
Interest income |
|
|
12 |
|
|
12 |
|
|
|
4 |
Interest expense |
|
|
(1,443) |
|
|
(1,044) |
|
|
|
(57) |
Income from discontinued operations before income taxes |
|
|
10,450 |
|
|
7,132 |
|
|
|
988 |
Provision for (benefit from) income taxes |
|
|
1,967 |
|
|
3,638 |
|
|
|
(187) |
Net income from discontinued operations |
|
$ |
8,483 |
|
$ |
3,494 |
|
|
$ |
1,175 |
The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations of SumTotal (in thousands):
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Successor |
|
|
October 31, 2022 |
|
|
January 31, 2022 |
Carrying amount of assets included as part of discontinued operations |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
— |
|
|
$ |
16,496 |
Restricted cash |
|
|
— |
|
|
|
236 |
Accounts receivable |
|
|
— |
|
|
|
38,587 |
Prepaid expenses and other current assets |
|
|
— |
|
|
|
8,755 |
Current assets of discontinued operations |
|
|
— |
|
|
|
64,074 |
Property and equipment, net |
|
|
— |
|
|
|
6,609 |
Goodwill |
|
|
— |
|
|
|
75,693 |
Intangible assets, net |
|
|
— |
|
|
|
75,628 |
Right of use assets |
|
|
— |
|
|
|
1,937 |
Other assets |
|
|
— |
|
|
|
4,945 |
Long-term assets of discontinued operations |
|
|
— |
|
|
|
164,812 |
Total assets classified as discontinued operations in the condensed consolidated balance sheet |
|
$ |
— |
|
|
$ |
228,886 |
|
|
|
|
|
|
|
|
Carrying amounts of liabilities included as part of discontinued operations: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
— |
|
|
$ |
1,502 |
Accrued compensation |
|
|
— |
|
|
|
10,293 |
Accrued expenses and other current liabilities |
|
|
— |
|
|
|
3,260 |
Lease liabilities |
|
|
— |
|
|
|
508 |
Deferred revenue |
|
|
— |
|
|
|
71,904 |
Current liabilities of discontinued operations |
|
|
— |
|
|
|
87,467 |
Deferred tax liabilities |
|
|
— |
|
|
|
516 |
Long term lease liabilities |
|
|
— |
|
|
|
1,605 |
Other long-term liabilities |
|
|
— |
|
|
|
305 |
Current liabilities of discontinued operations |
|
|
— |
|
|
|
2,426 |
Total liabilities classified as discontinued operations in the condensed consolidated balance sheet |
|
$ |
— |
|
|
$ |
89,893 |
|
|
|
|
|
|
|
|
|