Quarterly report pursuant to Section 13 or 15(d)

Disposals of Subsidiaries

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Disposals of Subsidiaries
9 Months Ended
Sep. 30, 2018
Disposals of Subsidiaries [Abstract]  
DISPOSALS OF SUBSIDIARIES

3. DISPOSALS OF SUBSIDIARIES

 

On February 27, 2018, the Company sold the ADEX Entities for $3,000 in cash plus a one-year convertible promissory note in the aggregate principal amount of $2,000 (refer to Note 4, Notes Receivable, for further detail). $2,500 in cash was received at closing, with $500 to be retained by the buyer for 90 days, of which $250 has been received. The remaining $250 is now due on demand. $1,000 of the $2,500 in cash received at closing was applied to the repayment of the Company’s indebtedness to JGB Concord, with an additional $900 in cash placed in an escrow account controlled by JGB Concord. This cash was to be released to the Company if certain conditions were met. On August 30, 2018, JGB Concord notified the Company that the $900 of cash was being applied to the Company’s outstanding note payable (refer to Note 8, Term Loans, for further detail).

 

As a result of the sale, the operations of the ADEX Entities are included in discontinued operations as of September 30, 2018 and December 31, 2017, and for the periods ending September 30, 2018 and 2017 (refer to Note 15, Discontinued Operations, for further detail).