| Discontinued Operations |
3. Discontinued Operations
The following is a summary of revenue and expenses of National for the three and nine months ended September 30, 2018. The Company had no activity related to National in 2019.
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Three Months Ended September 30,
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Nine Months Ended September 30,
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($ in thousands)
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2018
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2018
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Revenue
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$
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58,520
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$
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165,061
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Operating expenses
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Commissions, compensation and fees
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48,556
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141,462
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Clearing fees
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451
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1,772
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Communications
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856
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2,429
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Occupancy
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738
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2,834
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Licenses and registration
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861
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2,028
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Professional fees
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1,076
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3,047
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Interest
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26
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30
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Underwriting costs
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43
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230
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Depreciation and amortization
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871
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2,587
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Other administrative expenses
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1,726
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5,839
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Total operating expenses
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55,204
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162,258
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Loss from operations
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3,316
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2,803
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Other income (expenses)
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Interest income
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—
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6
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Interest expense and financing fees
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|
429
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1,195
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Change in fair value of derivative liabilities
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(12)
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(8,045)
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Other income
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(146)
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69
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Total other income (expenses)
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271
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(6,775)
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Income (loss) from discontinued operations before income taxes
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3,587
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(3,972)
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Income tax expense
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944
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2,382
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Income (loss) from discontinued operations
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2,643
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(6,354)
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Gain from disposal of National
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—
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—
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Total income (loss) from discontinued operations, net of tax
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$
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2,643
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$
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(6,354)
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During the nine months ended September 30, 2019, the Company received $13.1 million or $3.25 per share, for its remaining ownership of National, as such as of September 30, 2019, the Company had no asset available for sale on its condensed consolidated balance sheets. In connection with this sale, the Company classified the assets and liabilities related to National, included on its condensed consolidated balance sheet as of December 31, 2018, as held for sale as presented in the table below:
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December 31,
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($ in thousands)
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2018
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ASSETS
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Current assets
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Current assets held for sale
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$
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13,089
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Total current assets held for sale
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13,089
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Total assets held for sale
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$
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13,089
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The table below depicts the cash flows from the transaction for the nine months ended September 30, 2019 and 2018, respectively:
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Nine Months Ended September 30,
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($ in thousands)
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2019
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2018
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Operating activities
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|
|
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Effect of elimination entry with discontinued operations presentation
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$
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—
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$
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(1,168)
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Net loss on discontinued operations
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—
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(6,354)
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Total cash used in discontinued operating activities
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$
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—
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$
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(7,522)
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Investing activities
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Proceeds from sale of National
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$
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13,089
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$
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—
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Total cash provided by discontinued investing activities
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$
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13,089
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$
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—
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