Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.20.2
Discontinued Operations
9 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Note 4 - Discontinued Operations

 

On October 28, 2019, four creditors of Legacy Education Alliance International Ltd. ("Legacy UK"), one of our UK subsidiaries, obtained an order from the High Court of Justice, Business and Property Courts of England and Wales (the "English Court") with respect to the business and affairs of Legacy UK. Pursuant to the Administration Order of November 15, 2019, from the English Court, the two individuals appointed as administrators engaged a third-party to market Legacy UK's business and assets for sale to one or more third parties. On November 26, 2019, Legacy UK's assets and deferred revenues sold for £300 thousand (British pounds) to Mayflower Alliance LTD. We will not receive any proceeds from the sale of Legacy UK. Further details, including the resolution of claims and liabilities, and other information regarding the administration may not be forthcoming for several months. The impact of this transaction is reflected as a discontinued operation in the condensed consolidated financial statements.

 

The major classes of assets and liabilities of Legacy UK were as follows:

 

    September 30,     December 31,  
(in thousands)   2020     2019  
Major classes of liabilities                
Accounts payable     3,322       3,408  
Accrued course expenses     558       472  
Other accrued expenses     506       619  
Total major classes of liabilities - discontinued operations   $ 4,386     $ 4,499  

 

The financial results of the discontinued operations are as follows:

 

    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
(in thousands)   2020     2019     2020     2019  
Revenue   $     $ 3,881     $     $ 12,200  
Total operating costs and expenses           4,336             12,870  
Loss from discontinued operations           (455 )           (670 )
Interest income (expense)           60             (2 )
Other expense, net           (31 )           (258 )
Net loss from discontinued operations   $     $ (426 )   $     $ (930 )