Annual report pursuant to Section 13 and 15(d)

Discontinued Operations (Tables)

v3.10.0.1
Discontinued Operations (Tables)
12 Months Ended
Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations [Table Text Block]
Summarized operating results of discontinued operations for the years ended December 31, 2018 and 2017 are presented in the following table (in thousands):
 
 
 
Year Ended December 31,
 
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Revenue, net of returns, allowances and discounts
 
$
6,681
 
 
$
18,790
 
Cost of revenues
 
 
1,791
 
 
 
5,319
 
Gross profit
 
 
4,890
 
 
 
13,471
 
Selling, general and administrative
 
 
11,179
 
 
 
34,488
 
Other income
 
 
-
 
 
 
(200
)
Interest expense
 
 
612
 
 
 
2,282
 
Warrant modification expense
 
 
-
 
 
 
803
 
Deferred income tax benefit
 
 
-
 
 
 
(743
)
Loss from discontinued operations, net of tax
 
 
(6,901
)
 
 
(23,159
)
 
Summarized assets and liabilities of discontinued operations are presented in the following table (in thousands):
 
 
 
December 31,
 
 
December 31,
 
 
 
2018
 
 
2017
 
Accounts receivable, net
 
$
60
 
 
$
3,161
 
Inventory, net
 
 
-
 
 
 
1,458
 
Prepaid expenses and other current assets
 
 
-
 
 
 
443
 
Total current assets
 
 
60
 
 
 
5,062
 
Fixed assets, net
 
 
-
 
 
 
1,041
 
Intangible assets, net
 
 
-
 
 
 
22,069
 
Goodwill, net
 
 
-
 
 
 
1,659
 
Total assets of discontinued operations
 
 
60
 
 
 
29,831
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
 
271
 
 
 
957
 
Accrued expenses and other current liabilities
 
 
-
 
 
 
3,557
 
Senior secured term loan, net
 
 
-
 
 
 
10,929
 
Total current liabilities
 
$
271
 
 
$
15,443
 
Other long-term liabilities
 
 
-
 
 
 
245
 
Total liabilities of discontinued operations
 
$
271
 
 
$
15,688
 
Schedule of Gain Loss on Disposal of Discontinued Operations [Table Text Block]
During the year ended December 31, 2018, the Company recorded a net gain of approximately $5.5 million (net of state income tax of $0.546 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
 
 
 
 
 
 
(546
)
Net gain on sale of assets
 
 
 
 
 
$
5,488
 
 
During the year ended December 31, 2017, the Company recorded a gain of approximately $1.7 million (net of tax of $
0
) on the sale of the assets related to the Argentum Purchase Agreement, pursuant to the following (in thousands):
 
Proceeds from sale
 
 
 
 
 
 
 
 
Consideration for inventory
 
$
112
 
 
 
 
 
Consideration for intangible assets
 
 
3,600
 
 
 
 
 
Total Consideration
 
 
 
 
 
 
3,712
 
Less: Net book value of assets sold to Argentum
 
 
 
 
 
 
 
 
Inventory, net
 
 
(307
)
 
 
 
 
Intangibles, net
 
 
(1,709
)
 
 
 
 
Total net book value of assets
 
 
 
 
 
 
(2,016
)
Gain on sale of assets
 
 
 
 
 
$
1,696