Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.22.2.2
Discontinued Operations (Tables)
9 Months Ended
Oct. 31, 2022
Discontinued Operations  
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