ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
|12 Months Ended|
Dec. 31, 2017
|Assets And Liabilities Held For Sale And Discontinued Operations|
|ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS||
NOTE 13 – ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
During the third quarter of 2017, we sold 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 received 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 December 31, 2016, and “Discontinued operations” on our consolidated statement of operations for the year ending December 31, 2017 and 2016, and on our consolidated statement of cash flows for the years ending December 31, 2017 and 2016. The sale was completed on July 31, 2017. For the years ended December 31, 2017 and 2016 we recorded net income from discontinued operations equal to $694,300 and $423,300, respectively. For the year ended December 31, 2017 we recorded a gain on the sale of rail operations of $2,695,300.
In December 2017, the Company and the buyer signed Amendment No. 1 to the Asset Purchase Agreement which modified certain terms in the original asset purchase agreement providing for a reduction to the first guaranteed payment in the amount of $276,000 in exchange for immediate release of certain liabilities arising from the collection by the Company of certain trade receivables included in the sale.
Assets and liabilities held for sale were comprised of the following:
Major classes of line items constituting pretax loss on discontinued operations:
Total gain on disposal of rail operations:
Disclosure related to assets and liabilities held for sale and discontinued operations.
No definition available.