Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

Discontinued Operations

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

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:

	December 31,		December 31,
(in thousands)	2020		2019
Major classes of liabilities
Accounts payable	$	2,608	$	3,408
Accrued course expenses		593		472
Other accrued expenses		539		619
Total major classes of liabilities - discontinued operations	$	3,740	$	4,499

The financial results of the discontinued operations are as follows:

	Years Ended December 31,
(in thousands)	2020		2019
Revenue	$	—	$	14,315
Total operating costs and expenses		—		15,647
Loss from discontinued operations		—		(1,332	)
Interest income (expense)		—		(359	)
Other expense, net		—		8,300
Net loss from discontinued operations	$	—	$	6,609