Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.19.1
Discontinued Operations
 3 Months Ended
Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
3. Discontinued Operations
 
The following is a summary of revenue and expenses of National for the three months ended March 31, 2019 and 2018:
 
 
 
Three months ended March 31,
 
($ in thousands)
 
2019
 
 
2018
 
Revenue
 
$
–
 
 
$
49,522
 
 
 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
 
Commissions, compensation and fees
 
 
–
 
 
 
43,561
 
Clearing fees
 
 
–
 
 
 
743
 
Communications
 
 
–
 
 
 
760
 
Occupancy
 
 
–
 
 
 
955
 
Licenses and registration
 
 
–
 
 
 
637
 
Professional fees
 
 
–
 
 
 
1,393
 
Underwriting costs
 
 
–
 
 
 
145
 
Interest
 
 
–
 
 
 
2
 
Depreciation and amortization
 
 
–
 
 
 
859
 
Other administrative expenses
 
 
–
 
 
 
1,781
 
Total operating expenses
 
 
–
 
 
 
50,836
 
Gain (loss) from operations
 
 
–
 
 
 
(1,314
)
 
 
 
 
 
 
 
 
 
Other income (expenses)
 
 
 
 
 
 
 
 
Change in fair value of derivative liabilities
 
 
–
 
 
 
(1,088
)
Interest expense and financing fees
 
 
–
 
 
 
320
 
Interest income
 
 
–
 
 
 
6
 
Total other expenses
 
 
–
 
 
 
(762
)
Total loss from discontinued operations
 
$
–
 
 
$
(2,076
)
 
As of March 31, 2019, the Company received $13.1 million or $3.25 per share, for its remaining ownership of National, as such as of March 31, 2019 the Company had no asset available for sale on its condensed consolidated balance sheets. 
In connection with this sale, the Company classified the assets and liabilities related to National, included on its 
condensed consolidated balance sheet as of March 31, 2019 and December 31, 2018, as held for sale as presented in the table below:

 
 
 
 
March 31,
 
 
December 31,
 
($ in thousands)
 
2019
 
 
2018
 
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Current assets held for sale
 
$
–
 
 
 $
13,089
 
Total current assets held for sale
 
 
–
 
 
 
13,089
 
 
 
 
 
 
 
 
 
 
Total assets held for sale
 
$
–
 
 
$
13,089
 
 
The table below depicts the cash flows from the transaction for the three months ended March 31, 2019 and 2018, respectively:
 
 
 
Three months ended March 31,
 
($ in thousands)
 
2019
 
 
2018
 
Operating activities
 
 
 
 
 
 
 
 
Effect of elimination entry on discontinued operations presentation
 
$
–
 
 
$
(305
)
Net loss on discontinued operations
 
 
–
 
 
 
(2,076
)
Total cash used in discontinued operating activities
 
$
–
 
 
$
(2,381
)
 
 
 
 
 
 
 
 
 
Investing activities
 
 
 
 
 
 
 
 
Proceeds from sale of National
 
$
13,089
 
 
$
–
 
Total cash provided by discontinued investing activities
 
$
13,089
 
 
$
–