8. Divestitures

On January 18, 2018, the Company completed the divestiture of its Eeva business, the primary operations of our previous medical device segment, to a related party, Ares Trading S.A. a subsidiary of Merck Serono, S.A. (“Merck”), a shareholder in the Company. The Eeva business was sold to Merck for $7.9 million, consisting of cash of $3.0 million and the forgiveness of the $4.9 million liability remaining from the previous license agreement for the Eeva product between the two parties. The cash consideration includes $300,000 of deferred consideration, of which the last payment was received by the Company in March 2019.

The Company determined that the Eeva business met the criteria to be classified as held for sale as of December 31, 2016, representing a strategic shift in Progyny’s operations. With the amendment of the license agreement in May 2016, management committed to a plan to sell the business and move from the medical device business to the fertility benefits business which represented a strategic shift. The Board of Directors approved the ultimate sale of Eeva in December 2017.

In accordance with the applicable accounting guidance, upon the sale of the Eeva business on January 18, 2018, the Company reflected the Eeva business as discontinued operations in the consolidated financial statements.

Excluding the $200,000 of assets representing the remaining deferred consideration, there was no other assets or liabilities associated with the Eeva business as of December 31, 2018.

This transaction had no impact on the consolidated statement of operations for the fiscal years of 2019 and 2020 and no impact on the statement of cash flows for the fiscal year of 2020. The following is a summary of the operating results of Eeva which have been reflected within income from discontinued operations, net of tax (in thousands):


	Year Ended
	December 31,
	2019		2018
Revenue	$	—	$	—
Cost of service		—		—
Gross profit		—		—
Operating expenses:
Research and development		—		—
General and administration		—		—
Total operating expenses		—		—
Income from discontinued operations		—		—
Gain on sale of discontinued operations	$	—	$	7,554
Income from discontinued operations, before taxes		—		7,554
Provision for income taxes		—		(1,777)
Net income from discontinued operations, net of taxes	$	—	$	5,777

The significant components of the consolidated statement of cash flows for Eeva are as follows (in thousands):


	Year Ended
	December 31,
	2019		2018
OPERATING ACTIVITIES
Depreciation expense	$	—	$	—
Deferred license revenue		—		—

INVESTING ACTIVITIES
Deferred consideration	$	—	$	200
Proceeds from sale of business, net of costs		200		2,481