| Schedule of financial results of discontinued operations |
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Successor |
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Predecessor (SLH) |
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Three Months |
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Three Months |
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Ended |
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Ended |
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April 30, 2022 |
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April 30, 2021 |
Revenues: |
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Total revenues |
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$ |
29,076 |
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$ |
24,021 |
Operating expenses: |
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|
|
|
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Costs of revenues |
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9,623 |
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|
9,427 |
Content and software development |
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6,436 |
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|
6,103 |
Selling and marketing |
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5,322 |
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|
5,006 |
General and administrative |
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|
380 |
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|
547 |
Amortization of intangible assets |
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|
4,296 |
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|
3,026 |
Recapitalization and acquisition-related costs |
|
|
132 |
|
|
218 |
Restructuring |
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29 |
|
|
203 |
Total operating expenses |
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|
26,218 |
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|
24,530 |
Operating income from discontinued operations |
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|
2,858 |
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(509) |
Other income (expense), net |
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(49) |
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19 |
Interest income |
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6 |
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|
3 |
Interest expense |
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(767) |
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(41) |
Income from discontinued operations before income taxes |
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|
2,048 |
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(528) |
Provision for income taxes |
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|
597 |
|
|
968 |
Net income from discontinued operations |
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$ |
1,451 |
|
$ |
(1,496) |
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The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations of SumTotal (in thousands):
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Successor |
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Successor |
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April 30, 2022 |
|
|
January 31, 2022 |
Carrying amount of assets included as part of discontinued operations |
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|
|
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Cash and cash equivalents |
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$ |
6,054 |
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$ |
16,496 |
Restricted cash |
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|
236 |
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|
236 |
Accounts receivable |
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27,733 |
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|
|
38,587 |
Prepaid expenses and other current assets |
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|
9,882 |
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|
8,755 |
Current assets of discontinued operations |
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|
43,905 |
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|
64,074 |
Property and equipment, net |
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|
5,631 |
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|
6,609 |
Goodwill |
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75,594 |
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|
|
75,693 |
Intangible assets, net |
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|
71,507 |
|
|
|
75,628 |
Right of use assets |
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|
1,780 |
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|
1,937 |
Other assets |
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|
4,509 |
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|
|
4,945 |
Long-term assets of discontinued operations |
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|
159,021 |
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|
164,812 |
Total assets classified as discontinued operations in the condensed consolidated balance sheet |
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$ |
202,926 |
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$ |
228,886 |
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Carrying amounts of liabilities included as part of discontinued operations: |
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Accounts payable |
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$ |
1,522 |
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$ |
1,502 |
Accrued compensation |
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6,838 |
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|
10,293 |
Accrued expenses and other current liabilities |
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5,162 |
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|
3,260 |
Lease liabilities |
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|
519 |
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|
508 |
Deferred revenue |
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60,647 |
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|
71,904 |
Current liabilities of discontinued operations |
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|
74,688 |
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|
|
87,467 |
Deferred revenue - non-current |
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|
— |
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|
|
292 |
Deferred tax liabilities |
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|
1,073 |
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|
|
516 |
Long term lease liabilities |
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|
1,434 |
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|
1,605 |
Other long-term liabilities |
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|
149 |
|
|
|
13 |
Current liabilities of discontinued operations |
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|
2,656 |
|
|
|
2,426 |
Total liabilities classified as discontinued operations in the condensed consolidated balance sheet |
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$ |
77,344 |
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$ |
89,893 |
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