XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Note 3 - Discontinued Operations | 3 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 3. Discontinued Operations Plan to Sell B Medical Systems Business During the first quarter of fiscal year 2025, following approval by the Board of Directors of the Company, the Company publicly announced its plan to sell the B Medical Systems business. The B Medical Systems business operates as a separate business unit within the Company and operated as its own operating and reportable segment called the B Medical Systems segment focused on the manufacturing and distribution of temperature-controlled storage and transportation solutions in international markets to governments, health institutions, and non-government organizations. This action is intended to simplify the Company's portfolio and allow management to focus on driving revenue growth and profitability in its core businesses. The decision followed work by the Board of Directors to evaluate strategic, operational and financial opportunities to maximize stockholder value. The Company anticipates entering into a definitive agreement to sell its B Medical Systems business by November 2025. The Company determined that the B Medical Systems segment met the “held for sale” criteria and “discontinued operations” criteria in accordance with FASB ASC 205 as of November 12, 2024. Results related to the B Medical Systems segment are included within discontinued operations. The Condensed Consolidated Balance Sheet and Condensed Consolidated Statements of Operations, and the notes to the Condensed Consolidated Financial Statements, were retroactively reclassified for all periods presented to reflect the discontinuation of the B Medical Systems segment in accordance with FASB ASC 205. The following table presents the financial results of the B Medical Systems segment, included within discontinued operations (in thousands):
|  | Three Months Ended December 31, |
|  | 2024 |  |  | 2023 |
Revenue |  |  |  |  |  |  |  |
Products |  | $ | 14,288 |  |  | $ | 9,686 |
Services |  |  | 3,303 |  |  |  | 2,906 |
Total revenue |  |  | 17,591 |  |  |  | 12,592 |
Cost of revenue |  |  |  |  |  |  |  |
Products |  |  | 11,422 |  |  |  | 10,056 |
Services |  |  | 3,306 |  |  |  | 2,768 |
Total cost of revenue |  |  | 14,728 |  |  |  | 12,824 |
Gross profit |  |  | 2,863 |  |  |  | (232 | )
Operating expenses |  |  |  |  |  |  |  |
Research and development |  |  | 1,635 |  |  |  | 1,180 |
Selling, general and administrative |  |  | 6,187 |  |  |  | 8,687 |
Restructuring charges |  |  | 314 |  |  |  | 334 |
Total operating expenses |  |  | 8,136 |  |  |  | 10,201 |
Operating loss |  |  | (5,273 | ) |  |  | (10,433 | )
Interest income, net |  |  | 5 |  |  |  | 127 |
Other income, net |  |  | 530 |  |  |  | 164 |
Loss before income taxes |  |  | (4,738 | ) |  |  | (10,142 | )
Income tax benefit |  |  | (819 | ) |  |  | (1,610 | )
Loss from discontinued operations, net of tax |  | $ | (3,919 | ) |  | $ | (8,532 | )
The following table presents the significant non-cash items and capital expenditures for the discontinued operations with respect to the B Medical Systems segment that are included in the Condensed Consolidated Statements of Cash Flows (in thousands):
|  | Three Months Ended December 31, |
|  | 2024 |  |  | 2023 |
Depreciation and amortization |  | $ | 3,846 |  |  | $ | 7,219 |
Capital expenditures |  |  | 757 |  |  |  | 1,246 |
The carrying value of the assets and liabilities of the discontinued operations with respect to the B Medical Systems segment reflected as “held for sale” on the Condensed Consolidated Balance Sheets as of December 31, 2024 and September 30, 2024 was as follows (in thousands):
|  | December 31, 2024 |  |  | September 30, 2024 |
Assets |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 26,544 |  |  | $ | 30,899 |
Accounts receivable, net |  |  | 8,010 |  |  |  | 16,438 |
Inventories |  |  | 33,361 |  |  |  | 36,333 |
Prepaid expenses and other current assets |  |  | 4,658 |  |  |  | 5,224 |
Current assets held for sale |  | $ | 72,573 |  |  | $ | 88,894 |
Property, plant and equipment, net |  | $ | 43,681 |  |  | $ | 47,032 |
Intangibles, net |  |  | 111,569 |  |  |  | 122,988 |
Other assets |  |  | 3,354 |  |  |  | 3,774 |
Noncurrent assets held for sale |  | $ | 158,604 |  |  | $ | 173,794 |
Liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 9,148 |  |  | $ | 11,089 |
Deferred revenue |  |  | 598 |  |  |  | 1,485 |
Accrued warranty and retrofit costs |  |  | 4,764 |  |  |  | 4,916 |
Accrued compensation and benefits |  |  | 2,303 |  |  |  | 2,929 |
Accrued income taxes |  |  | 1,840 |  |  |  | 4,012 |
Accrued expenses and other current liabilities |  |  | 4,949 |  |  |  | 5,619 |
Current liabilities held for sale |  | $ | 23,602 |  |  | $ | 30,050 |
Long-term deferred tax liabilities |  |  | 32,802 |  |  |  | 36,093 |
Long-term operating lease liabilities |  |  | 1,993 |  |  |  | 2,109 |
Other long-term liabilities |  |  | 3,336 |  |  |  | 3,994 |
Noncurrent liabilities held for sale |  | $ | 38,131 |  |  | $ | 42,196 |
Disposition of Semiconductor Business On February 1, 2022, the Company completed the sale of the semiconductor automation business for $2.9 billion in cash to Thomas H. Lee Partners, L.P. On July 1, 2019, the Company completed the sale of the semiconductor cryogenics business for $659.8 million to Edwards Vacuum LLC (a member of the Atlas Copco Group) (“Edwards”). Both the semiconductor automation business and the semiconductor cryogenics business are considered discontinued operations. The Company still may have certain indemnification obligations pursuant to claims made under the definitive agreement it entered into with Edwards in connection with the Company’s sale of its semiconductor cryogenics business in the fourth quarter of fiscal year 2018. In the third quarter of fiscal year 2020, Edwards asserted claims for indemnification under the definitive agreement relating to alleged breaches of representations and warranties relating to customer warranty claims and inventory (the “2020 Claim”). In addition, in January 2023, Edwards filed a lawsuit against the Company in the Supreme Court of the State of New York in the County of New York seeking indemnification from the Company under such definitive agreement for $1.0 million and other related damages, including interest and attorney’s fees, arising from a third-party claim that was included as part of their initial claims (the “2023 Claim”). In April 2023, the Company responded to and filed a counterclaim against Edwards for the 2023 Claim alleging breach of the definitive agreements by Edwards and seeking a declaratory judgment. During the third quarter of fiscal year 2023, the Company and Edwards entered into a settlement agreement related to the 2023 Claim to avoid the costs and uncertainties of potential litigation. Under the settlement agreement, the Company paid Edwards $0.8 million from one of the indemnification escrows established at closing of the sale in return for the release of the 2023 Claim and the release to the Company of $1.0 million from a separate indemnification escrow. The Company accrued a liability of $2.5 million for the 2020 Claim and 2023 Claim of which $0.8 million was paid during the third quarter of fiscal year 2023. The 2020 Claim remains outstanding and $1.7 million remains in the balance of the accrued liability as of December 31, 2024. The Company had been informed that Edwards sought recovery for the 2020 Claim from the representation and warranty insurance Edwards obtained in connection with the closing of the sale of the semiconductor cryogenics business. During the first quarter of fiscal year 2025, the Company was further informed that Edwards agreed to a payment under such insurance for claimed amounts in excess of the applicable indemnification deductibles established under the definitive agreement, but less than the total of claimed amounts submitted for recovery. Although management believes that any indemnifiable losses in excess of the applicable deductibles established in the definitive agreement would be covered by such insurance, Edwards is seeking recovery from the Company for claimed amounts purportedly not covered, or inadequately covered, by such insurance (the “Claim for Uncovered Amounts”). The Company cannot determine the probability of any losses or outcome of the Claim for Uncovered Amounts including the amount of any indemnifiable losses, if any, resulting from this claim. The Company, however, does not believe that this claim will have a material adverse effect on its consolidated financial position or results of operations, in each case, for continuing operations. Any potential expense incurred by the Company for these claims would be reflected in discontinued operations. In the event of unexpected subsequent developments and given the inherent unpredictability of these matters, there can be no assurance that the Company’s assessment of these claims will reflect the ultimate outcome, and an adverse outcome in these matters could, from time to time, have a material adverse effect on the Company’s consolidated financial position or results of operations in particular quarterly or annual periods.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration