Quarterly report [Sections 13 or 15(d)]

Discontinued Operations

Discontinued Operations

6 Months Ended

Mar. 31, 2025

3. Discontinued Operations

On April 18, 2024, the Company’s Mergers and Acquisitions (“M&A”) committee of the Board of Directors completed its review of strategic alternatives recommended by an outside investment banking firm. This included recommendation of divesture of the Company’s Industrial Segment which was subsequently approved by the Company’s full Board of Directors on May 13, 2024. Management thereafter began the process of identifying and contacting potential buyers and expects to complete this divesture in 2025. As of March 31, 2025, the Company’s plan to sell its Industrial Segment met all the criteria for the first time to be reported as discontinued operations under U.S. GAAP, the final one being making the determination that the sale or other disposition would now be completed within twelve months.

Assets and Liabilities of Discontinued Operations

The balances of assets and liabilities under the Industrial Segment as of March 31, 2025 and September 30, 2024 consisted of the following:

	March 31, 2025		September 30, 2024
Assets of discontinued operations:
Cash	$	175	$	93
Accounts receivable, net		829		996
Prepaid expenses and other current assets		33		64
Property and equipment, net		4		13
Right-of-use assets		144		138
Other long-term assets		24		57
Total assets of discontinued operations	$	1,209	$	1,361

Liabilities of discontinued operations:
Accounts payable	$	29	$	27
Accrued compensation		135		197
Current operating lease liabilities		97		105
Other current liabilities		4		18
Noncurrent operating lease liabilities		48		33
Total liabilities of discontinued operations	$	313	$	380

Net Loss from Discontinued Operations

Results of the Industrial Segment for the three and six-month periods ended March 31, 2025 and 2024, respectively, consisted of the following:

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2025			2024			2025			2024

Revenue	$	1,545		$	2,462		$	3,546		$	4,955
Expenses:
Cost of contract services		1,288			2,087			2,919			4,181
Selling, general and administrative expenses		418			450			794			874
Depreciation expense		2			12			4			23
Interest expense		-			2			-			4
Loss from discontinued operations before income taxes		(163	)		(89	)		(171	)		(127	)
Provision for income tax expense attributable to discontinued operations		-			-			-			-
Loss from discontinued operations, net of tax	$	(163	)	$	(89	)	$	(171	)	$	(127	)

Cash Flows from Discontinued Operations

There were no capital expenditures or other significant cash flows under the Industrial Segment during either of the six-month periods ended March 31, 2025 and 2024.