Quarterly report pursuant to Section 13 or 15(d)

ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2017

Assets And Liabilities Held For Sale And Discontinued Operations

ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

NOTE 11 – ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

During the second quarter of 2017, we committed to a plan to sell our fixed railcar cleaning division which includes substantially all assets and liabilities of Tactical (except for cash) as well as three locations in REGS including Illinois, Maryland and Pennsylvania for a sales price of $2.4 million of proceeds at the close on July 31, 2017, subject to an adjustment for working capital changes, and guaranteed payments of $1.1 million over the next three years. In addition, the Company is entitled to receive another $1.5 million based on the performance of the fixed railcar cleaning locations, also over the next three years. Accordingly, the carrying value of the assets and liabilities associated with the railcar cleaning locations are presented as “Assets held for sale” and “Liabilities held for sale” on our consolidated balance sheet as of June 30, 2017 and December 31, 2016, and “Discontinued operations” on our consolidated statement of operations for three and six months ending June 30, 2017 and June 30, 2016, and on our consolidated statement of cash flows for the six months ending June 30, 2017 and June 30, 2016. The letter of intent for the sale was signed on June 1, 2017 and the sale was completed on July 31, 2017. Based on the estimated net sale proceeds, we expect to record a gain upon completion of this sale in Q3 2017.

Assets and liabilities held for sale were comprised of the following:

	June 30, 2017		December 31, 2016
Accounts receivable, net	$	944,300	$	841,800
Property and equipment, net		127,400		156,200
Other		37,200		26,600
Total Assets held for sale	$	1,108,900	$	1,024,600

Accounts payable	$	799,900	$	513,500
Accrued expenses and other		35,900		89,600
Total Liabilities held for sale	$	835,800	$	603,100

Major classes of line items constituting pretax loss on discontinued operations:

	For the three months ending June 30,						For the six months ending June 30,
	2017			2016			2017			2016
Services revenue	$	1,723,600		$	1,101,100		$	3,325,100		$	1,976,300

Services costs		1,442,300			836,500			2,580,400			1,430,000
General and administrative expenses		69,300			39,100			94,800			83,000
Salaries and related expenses		98,200			60,000			181,200			121,900
Other (income) expense		(9,800	)		(1,400	)		(9,600	)		1,000
Total expenses		1,600,000			934,200			2,846,800			1,635,900

Operating income		123,600			166,900			478,300			340,400
Income tax benefit		—			—			—			—

Total income from discontinued operations	$	123,600		$	166,900		$	478,300		$	340,400