Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.5.0.2
Discontinued Operations
 9 Months Ended
Sep. 30, 2016
Discontinued Operations [Abstract]  
Discontinued Operations

Note 7 – Discontinued Operations

 

As of December 31, 2015, the Company’s management decided to close its Saudi Arabia legal entity as business activities and operations have been strategically shifted according to the business plan of the Company.

 

In accordance with ASC topic 360 “Property, Plant and Equipment”, the Company has elected to classify the assets and liabilities as discontinued assets and liabilities in the accompanying consolidated financial statements.

  

The major categories of discontinued assets and liabilities in the consolidated balance sheets at September 30, 2016 and December 31, 2015 (in thousands):

 

    September 30, 
2016		     December 31, 2015  
Assets            
Accounts receivable, net     1       1  
Notes and other receivables     8       8  
Other assets     763       763  
Total Current Assets     772       772  
                 
Other assets     --       --  
Total Assets   $ 772     $ 772  
                 
Liabilities and Stockholders’ Equity                
                 
Current Liabilities                
Accounts payable   $ 178     $ 178  
Accrued liabilities     900       888  
Deferred revenue     236       236  
Due to related party     1       2  
Short-term debt     722       722  
Total Current Liabilities     2,037       2,026  
                 
Long Term Liabilities     --       --  
                 
Total Liabilities   $ 2,037     $ 2,026  

 

The Company has entered into surety bonds with a financial institution in Saudi Arabia which guaranteed performance on certain contracts.  Deposits for surety bonds amounted to $749,000 as of September 30, 2016 and December 31, 2015. These bonds will be released once the related contract is closed out which is expected to occur during the year ended December 31, 2016. Deposits are included on the condensed consolidated balance sheets in assets held for sale. 

 

The Company did not recognize any depreciation or amortization expense related to discontinued operations during the nine months ended September 30, 2016 or 2015.  There were no significant capital expenditures or non-cash operating or investing activities of discontinued operations during the periods presented. The operations of Sysorex Arabia were insignificant for the three and nine months ended September 30, 2016 and 2015.