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)
9 Months Ended
Sep. 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 nine months ended September 30, 2018 and 2017 are presented in the following table (in thousands):
 
 
 
Three Months Ended September 30,
 
 
Nine Months Ended September 30,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue, net of returns, allowances and discounts
 
$
-
 
 
$
4,748
 
 
$
6,681
 
 
$
14,009
 
Cost of revenues
 
 
(1
)
 
 
1,252
 
 
 
1,790
 
 
 
3,827
 
Gross profit
 
 
1
 
 
 
3,496
 
 
 
4,891
 
 
 
10,182
 
Selling, general and administrative
 
 
(203
)
 
 
5,781
 
 
 
11,282
 
 
 
18,812
 
Other (income)/expense
 
 
-
 
 
 
(66
)
 
 
-
 
 
 
(66
)
Loss on extinguishment of debt
 
 
-
 
 
 
32
 
 
 
-
 
 
 
32
 
Interest expense
 
 
-
 
 
 
577
 
 
 
612
 
 
 
1,746
 
Warrant modification expense
 
 
-
 
 
 
-
 
 
 
-
 
 
 
803
 
Income/(loss) from discontinued operations, net of tax
 
 
204
 
 
 
(2,828
)
 
 
(7,003
)
 
 
(11,145
)
Schedule of Gain Loss on Disposal of Discontinued Operations [Table Text Block]
During the three and nine months ended September 30, 2018, the Company recorded a net gain of approximately $5.5 million (net of state income tax of $0.488 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
 
 
 
 
 
 
(488
)
Net gain on sale of assets
 
 
 
 
 
$
5,546
 
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):
 
 
 
September 30,
 
 
December 31,
 
 
 
2018
 
 
2017
 
Accounts receivable, net
 
$
445
 
 
$
3,161
 
Inventory, net
 
 
-
 
 
 
1,458
 
Prepaid expenses and other current assets
 
 
-
 
 
 
443
 
Total current assets
 
 
445
 
 
 
5,062
 
Fixed assets, net
 
 
-
 
 
 
1,041
 
Intangible assets, net
 
 
-
 
 
 
22,069
 
Goodwill, net
 
 
-
 
 
 
1,659
 
Total assets of discontinued operations
 
 
445
 
 
 
29,831
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
 
2,322
 
 
 
957
 
Accrued expenses and other current liabilities
 
 
29
 
 
 
3,557
 
Senior secured term loan, net
 
 
-
 
 
 
10,929
 
Total current liabilities
 
$
2,351
 
 
$
15,443
 
Other long-term liabilities
 
 
-
 
 
 
245
 
Total liabilities of discontinued operations
 
$
2,351
 
 
$
15,688