Quarterly report pursuant to Section 13 or 15(d)

Description of Business and Basis of Presentation (Tables)

v3.10.0.1
Description of Business and Basis of Presentation (Tables)
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Disposal Groups, Including Discontinued Operations [Table Text Block]
Summarized operating results of discontinued operations for the three and six months ended June 30, 2018 and 2017 are presented in the following table (in thousands):
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue, net of returns, allowances and discounts
 
$
1,844
 
$
4,905
 
$
6,681
 
$
9,261
 
Cost of revenues
 
 
504
 
 
1,337
 
 
1,791
 
 
2,575
 
Gross profit
 
 
1,340
 
 
3,568
 
 
4,890
 
 
6,686
 
Selling, general and administrative
 
 
5,140
 
 
6,088
 
 
11,485
 
 
13,031
 
Interest expense
 
 
64
 
 
596
 
 
612
 
 
1,169
 
Warrant modification expense
 
 
-
 
 
33
 
 
-
 
 
803
 
Loss from discontinued operations, net of tax
 
 
(3,864)
 
 
(3,149)
 
 
(7,207)
 
 
(8,317)
 
Schedule of Gain Loss on Disposal of Discontinued Operations [Table Text Block]
During the three and six months ended June 30, 2018, the Company recorded a net gain of approximately $5.5 million (net of state income tax of $0.5 million) on the sale of the assets related to the purchase agreement with Celularity, as shown in the following table (in thousands): 
 
Proceeds from sale
 
 
 
 
 
 
 
Total Consideration
 
 
 
 
 
29,000
 
Less: Net book value of assets sold to Celularity
 
 
 
 
 
 
 
Inventory, net
 
 
(1,578)
 
 
 
 
Intangibles, net
 
 
(20,557)
 
 
 
 
Goodwill
 
 
(1,659)
 
 
 
 
Fixed Assets, net
 
 
(904)
 
 
 
 
Other current assets
 
 
15
 
 
 
 
Total net book value of assets
 
 
 
 
 
(24,683)
 
Add: Net book value of liabilities extinguished due to sale
 
 
 
 
 
 
 
Milestone payment
 
 
1,000
 
 
 
 
Other liabilities
 
 
717
 
 
 
 
Total net book value of liabilities
 
 
 
 
 
1,717
 
Less: State tax expense
 
 
 
 
 
(513)
 
Net gain on sale of assets
 
 
 
 
$
5,521
 
Schedule of Closed Block Assets and Liabilities [Table Text Block]
Summarized assets and liabilities of discontinued operations are presented in the following table (in thousands):
 
 
 
June 30,
 
December 31,
 
 
 
2018
 
2017
 
Accounts receivable, net
 
$
1,024
 
$
3,161
 
Inventory, net
 
 
-
 
 
1,458
 
Prepaid expenses and other current assets
 
 
200
 
 
443
 
Total current assets
 
 
1,224
 
 
5,062
 
Fixed assets, net
 
 
-
 
 
1,041
 
Intangible assets, net
 
 
-
 
 
22,069
 
Goodwill, net
 
 
-
 
 
1,659
 
Total assets of discontinued operations
 
 
1,224
 
 
29,831
 
 
 
 
 
 
 
 
 
Accounts payable
 
 
2,169
 
 
957
 
Accrued expenses and other current liabilities
 
 
131
 
 
3,557
 
Senior secured term loan, net
 
 
-
 
 
10,929
 
Total current liabilities
 
$
2,300
 
$
15,443
 
Other long-term liabilities
 
 
-
 
 
245
 
Total liabilities of discontinued operations
 
$
2,300
 
$
15,688