Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.7.0.1
Discontinued Operations
 3 Months Ended
Mar. 31, 2017
Discontinued Operations [Abstract]  
Discontinued Operations

Note 8 - 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 classified the assets and liabilities as discontinued assets and liabilities in the accompanying consolidated financial statements.

 

The major categories of assets and liabilities held for sale in the condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 (in thousands):

 

    March 31, 
2017		     December 31, 2016  
Assets            
Accounts receivable, net     1       1  
Notes and other receivables     8       8  
Other assets     14       14  
Total Current Assets     23       23  
                 
Other assets     --       --  
Total Assets   $ 23     $ 23  
                 
Liabilities and Stockholders’ Equity                
                 
Current Liabilities                
Accounts payable   $ 178     $ 178  
Accrued liabilities     908       904  
Deferred revenue     236       236  
Due to related party     2       1  
Short-term debt     722       722  
Total Current Liabilities     2,046       2,041  
                 
Long Term Liabilities     --       --  
                 
Total Liabilities   $ 2,046     $ 2,041  

 

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 $0 as of March 31, 2017 and December 31, 2016, as a reserve was placed against the deposit balance during the year ended December 31, 2016 due to the uncertainty of when the bond will be released.

 

The Company did not recognize any depreciation or amortization expense related to discontinued operations during the three months ended March 31, 2017 and 2016. 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 months ended March 31, 2017 and 2016.

 

End of Service Indemnity Provision

 

In accordance with local labor laws, Sysorex Arabia is required to accrue benefits payable to its employees at the end of their services with Sysorex Arabia. For the three months ended March 31, 2017 and 2016, no amounts were required to be accrued under this provision.