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Discontinued operations | 6 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued operations | Discontinued operations In 2024, the Company, our management, and our board of Directors (the "Board"), made the decision to sell Global Cooling and CBS (the "Freezer Business"), allowing the Company to optimize its product portfolio by focusing on its recurring higher margin revenue streams. Additionally, in November of 2024, the Company, our management, and the Board determined the sale of SciSafe would further optimize the Company's product portfolio toward its proprietary high margin cell processing and other bioproduction products. Accordingly, the results of these businesses are reported in the Loss from discontinued operations line in the Condensed Consolidated Statements of Operations. These changes have been applied to all periods presented. Divestiture of Global Cooling, Inc. On April 17, 2024, the Company sold all of the issued and outstanding shares of common stock of Global Cooling to GCI Holdings pursuant to the Global Cooling Purchase Agreement. The Company analyzed the quantitative and qualitative factors relevant to the sale of Global Cooling and determined that the conditions for discontinued operations presentation were met during the second quarter of 2024. As a condition of the Global Cooling Purchase Agreement, Global Cooling was required to have $7.0 million in cash on its balance sheet, of which, $6.7 million in cash was funded by the Company, and the Company was required to repay approximately $2.6 million of outstanding indebtedness of Global Cooling, and assume certain other liabilities of Global Cooling of $2.6 million. The Company recognized a loss on disposal of Global Cooling, calculated as follows:
(In thousands) |
Selling price: $1 | $ | — |
Cash to Global Cooling funded by Company | (6,652) |
Costs to sell Global Cooling(1) | (582) |
Negative selling price | (7,234) |
Global Cooling carrying basis as of April 17, 2024, inclusive of assumed liabilities | (3,589) |
Assumed liabilities: Accounts payable(2) | 2,643 |
Assumed liabilities: Debt(3) | 2,596 |
Less: Global Cooling carrying basis as of April 17, 2024 | 1,650 |
Less: Release of Global Cooling currency translation adjustment | (13) |
Net loss on disposal | $ | (8,897) |
(1) Represents the costs incurred in connection with the Global Cooling Divestiture, including fees to be paid to the broker, attorneys, and other external parties. (2) As a closing condition, the Company assumed certain accounts payable and accrued expenses from Global Cooling, totaling $0.5 million and $2.1 million, respectively. (3) As a closing condition, the Company repaid the outstanding indebtedness of Global Cooling as of the date of the Global Cooling Divestiture. In connection with the Company’s entry into the Global Cooling Purchase Agreement, the Company implemented a reduction in force (the “RIF”) related to the business of Global Cooling, which reduced the Company’s workforce by 47 employees (representing approximately 11% of its full-time employees as of the date of the RIF). The Board approved the RIF on March 29, 2024, and all affected employees of Global Cooling were informed by April 18, 2024, following the execution of the Global Cooling Purchase Agreement. Additionally, the Company accelerated the unvested shares granted to both the employees impacted by the RIF and employees that remained with Global Cooling upon the closing of the Global Cooling Divestiture. The Company recognized the following charges in connection with the RIF and stock compensation expense acceleration:
(In thousands) | Severance |  | Stock Compensation |  | Total
RIF employee costs | $ | 291 |  |  | $ | 1,255 |  |  | $ | 1,546 |
Former Global Cooling employees | — |  |  | 1,925 |  |  | 1,925 |
Total employment related divestiture expenditures | $ | 291 |  |  | $ | 3,180 |  |  | $ | 3,471 |
As outlined in the Global Cooling Purchase Agreement, the Company is required to indemnify Global Cooling for certain preexisting legal contingencies. Prior to the Global Cooling Divestiture, a lawsuit was filed by a previous customer related to Global Cooling's commercial freezer products seeking payment of up to $4.0 million for losses the customer claims to have incurred. As of the year ended December 31, 2024, the Company recorded a loss contingency under the discontinued operations of Global Cooing related to this product liability claim as outlined in the Global Cooling Purchase Agreement. During the fourth quarter of 2024, it became probable this loss would be settled within the next fiscal year. The product liability claim is subject to insurance recovery, which management believes is probable as enforceable under the Company's insurance policy, covering the entirety of the loss contingency aside from the Company's insurance deductibles. The Company estimates the legal expenses to be incurred will be immaterial. There were no changes in the status of this claim during the three and six months ended June 30, 2025. In addition, upon the closing of the Global Cooling Divestiture, the Company and Global Cooling entered into a transition services agreement ("Global Cooling TSA"), pursuant to which the Company agreed to provide certain transition services to Global Cooling for up to 90 days following the date of the closing of the Global Cooling Divestiture. The Global Cooling TSA has since expired pursuant to its terms on the stated expiration date. The Company has no other significant continuing involvement with Global Cooling. Divestiture of SciSafe, Inc. On November 12, 2024, the Company entered into the SciSafe Purchase Agreement, and SciSafe, for the sale by SciSafe Seller of all of the issued and outstanding shares of common stock of SciSafe to SciSafe Buyer. The Company analyzed the quantitative and qualitative factors relevant to the SciSafe Divestiture and determined that the conditions for discontinued operations presentation were met during the fourth quarter of 2024. In connection with the closing of the SciSafe Divestiture, the Company incurred $0.4 million in severance costs, paid the former stockholders of SciSafe $3.3 million in cash to waive all rights with respect to certain potential earn-out payments, and recognized $4.0 million in stock compensation expense for the acceleration of unvested shares of all the Company's former employees that remained with SciSafe upon the closing of this transaction. The Company recognized a gain on disposal of SciSafe, calculated as follows:
(In thousands) |
Cash proceeds received from Buyer | $ | 71,291 |
Cash proceeds from escrow | 483 |
Costs to sell(1) | (506) |
Total proceeds | 71,268 |
Less: SciSafe carrying basis as of November 12, 2024 | 42,507 |
Less: Release of SciSafe currency translation adjustment | 622 |
Net gain on disposal | $ | 28,139 |
(1) Gross costs to sell incurred by the Company amounted to $2.1 million. This was offset by additional costs to sell paid on behalf of the Company by the SciSafe Buyer, which amounted to $1.6 million. In accordance with ASC 350, upon the disposal of SciSafe, the Company assessed the goodwill to be allocated to the disposal group. The goodwill allocated to SciSafe was based on the relative fair value of SciSafe to the fair value of the Company as SciSafe was fully integrated into the Company's one reportable segment. The fair value of SciSafe was determined based on the enterprise value per the SciSafe Purchase Agreement. The fair value of the Company was determined by calculating the Company's market capitalization as of the disposal date plus any invested capital remaining of the Company, which included outstanding debt and financing lease liabilities, modified by an estimated market acquisition premium. Based on the calculation performed, the Company determined $11.3 million of goodwill was to be allocated to SciSafe upon its disposal. The allocated goodwill was included in the carrying basis of SciSafe presented in the above table. In addition, upon the closing of the SciSafe Divestiture, the Company and SciSafe entered into a transition services agreement ("SciSafe TSA"), pursuant to which the Company will provide certain transition services to SciSafe for up to six months following the closing of the SciSafe Divestiture. The SciSafe Purchase Agreement contains customary representations, warranties, covenants and indemnities of the parties thereto, including customary covenants that prevent the Company from competing with SciSafe, soliciting its employees or interfering with its business relationships for five years after the closing of the SciSafe Divestiture. Pursuant to the SciSafe Purchase Agreement, the final purchase price was subject to working capital adjustments upon the closing of the SciSafe Divestiture. The Company's management estimated the final working capital adjustment amount and provided that estimate to the SciSafe Buyer as of the divestiture date. The SciSafe Buyer had an agreed upon period to adjust the estimate provided. As of the three months ended June 30, 2025, the Company expects to soon resolve the working capital adjustments and will record any potential excess of the purchase price when amounts become realizable. The final working capital adjustment amount has not yet been determined. In connection with the disposal of SciSafe, the Company remains liable and responsible for the full performance and observance of all of the provisions, covenants, and conditions in one of SciSafe's operating leases. In the case of a breach or violation of any provision of the lease by the SciSafe Buyer, the Company is deemed to be in default of the lease provisions. Simultaneously, the Company received indemnification pursuant any obligation owed by the Company under this operating lease. This indicates the Company undertakes the obligation to stand ready to perform over the term of the guarantee in the event of the specified triggering events noted above, or if conditions, such as breach or default, occur. However, the non-contingent aspect of the guarantee enables the Company to recover any losses from the SciSafe Buyer. As of June 30, 2025, the fair value of this guarantee is not material. The outstanding minimum lease payments equal approximately $2.4 million and the lease terminates in 2031. The Company has no other significant continuing involvement with SciSafe upon the expiration of its SciSafe TSA and other related covenants. Divestiture of Custom Biogenics On November 14, 2024, the Company entered into the CBS Purchase Agreement, for the sale by the Company of all of the issued and outstanding shares of common stock of CBS. The Company analyzed the quantitative and qualitative factors relevant to the CBS Divestiture and determined that the conditions for discontinued operations presentation were met during the fourth quarter of 2024. The Company recognized $2.0 million in stock compensation expense for the acceleration of unvested shares of all the Company's former employees that remained with CBS upon the closing of the CBS Divestiture. The Company recognized a loss on disposal of CBS, calculated as follows:
(In thousands) |
Cash proceeds received from Buyer | $ | 2,785 |
Cash proceeds from escrow | 615 |
Net price adjustment(1) | 179 |
Costs to sell(2) | (148) |
Total proceeds | 3,431 |
Less: CBS carrying basis as of November 14, 2024 | 6,796 |
Net loss on disposal | $ | (3,365) |
(1) As defined within the CBS Purchase Agreement, the final purchase price was subject to working capital adjustments upon the closing of the CBS Divestiture. (2) Gross costs to sell incurred by the Company amounted to $1.4 million. This was offset by additional costs to sell paid on behalf of the Company by the CBS Buyer, which amounted to $1.3 million. In accordance with ASC 350, upon the disposal of CBS, the Company assessed the goodwill to be allocated to the disposal group. The goodwill allocated to CBS was based on the relative fair value of CBS to the fair value of the Company as CBS was fully integrated into the Company's one reportable segment. The fair value of CBS was determined based on the enterprise value per the CBS Purchase Agreement. The fair value of the Company was determined by calculating the Company's market capitalization as of the disposal date plus any invested capital remaining of the Company, which included outstanding debt and financing lease liabilities, modified by an estimated market acquisition premium. Based on the calculation performed, the Company determined $1.1 million of goodwill was to be allocated to CBS upon its disposal. The allocated goodwill was included in the carrying basis of CBS presented in the above table. In addition, upon the closing of the CBS Divestiture, the Company and CBS entered into a transition service agreement (the "CBS TSA"), pursuant to which the Company will provide certain transition services to CBS following the closing of the CBS Divestiture. The CBS Purchase Agreement contains customary representations, warranties, covenants and indemnities of the parties thereto, including customary covenants that prevent the Company from competing with CBS, soliciting its employees or interfering with its business relationships for two years after the closing of the CBS Divestiture. The Company has no other significant continuing involvement with CBS upon the expiration of its CBS TSA and related covenants. Summarized financial data of discontinued operations The tables below summarize financial data of discontinued operations for the three and six months ended June 30, 2024. Interest expenses directly associated with the debt of a disposed entity is reported in discontinued operations below. The table below summarizes the key components of loss from discontinued operations as follows:
| Three Months Ended June 30, 2024
(In thousands) | Global Cooling |  | SciSafe |  | CBS |  | Total
Revenue | $ | 2,209 |  |  | $ | 5,279 |  |  | $ | 3,335 |  |  | $ | 10,823 |
Cost of revenue | 1,789 |  |  | 4,205 |  |  | 2,722 |  |  | 8,716 |
Gross profit | 420 |  |  | 1,074 |  |  | 613 |  |  | 2,107 |
Operating expenses | (5,105) |  |  | (1,853) |  |  | (1,320) |  |  | (8,278) |
Other income (expense), net | 9 |  |  | (69) |  |  | (31) |  |  | (91) |
Loss on disposal | (8,897) |  |  | — |  |  | — |  |  | (8,897) |
Loss before income taxes | (13,573) |  |  | (848) |  |  | (738) |  |  | (15,159) |
Income tax expense | — |  |  | 4 |  |  | (4) |  |  | — |
Loss from discontinued operations, net of income taxes | $ | (13,573) |  |  | $ | (844) |  |  | $ | (742) |  |  | $ | (15,159) |
| Six Months Ended June 30, 2024
(In thousands) | Global Cooling |  | SciSafe |  | CBS |  | Total
Revenue | $ | 7,157 |  |  | $ | 10,414 |  |  | $ | 6,545 |  |  | $ | 24,116 |
Cost of revenue | 8,389 |  |  | 7,930 |  |  | 5,370 |  |  | 21,689 |
Gross profit | (1,232) |  |  | 2,484 |  |  | 1,175 |  |  | 2,427 |
Operating expenses | (9,418) |  |  | (3,516) |  |  | (2,495) |  |  | (15,429) |
Other expense, net | (25) |  |  | (87) |  |  | (56) |  |  | (168) |
Loss on disposal | (8,897) |  |  | — |  |  | — |  |  | (8,897) |
Loss before income taxes | (19,572) |  |  | (1,119) |  |  | (1,376) |  |  | (22,067) |
Income tax expense | (10) |  |  | (95) |  |  | (9) |  |  | (114) |
Loss from discontinued operations, net of income taxes | $ | (19,582) |  |  | $ | (1,214) |  |  | $ | (1,385) |  |  | $ | (22,181) |
Below is a summary of incurred depreciation, amortization, interest expenses, capital expenditures, and other noncash related costs for discontinued operations:
| Three Months Ended June 30, 2024
(In thousands) | Global Cooling |  | SciSafe |  | CBS |  | Total
Depreciation | $ | — |  |  | $ | 718 |  |  | $ | — |  |  | $ | 718 |
Amortization | $ | — |  |  | $ | 227 |  |  | $ | — |  |  | $ | 227 |
Stock-based compensation | $ | 3,243 |  |  | $ | 732 |  |  | $ | 759 |  |  | $ | 4,734 |
Interest expense, net | $ | 3 |  |  | $ | 5 |  |  | $ | 32 |  |  | $ | 40 |
Capital expenditures | $ | — |  |  | $ | 735 |  |  | $ | 149 |  |  | $ | 884 |
| Six Months Ended June 30, 2024
(In thousands) | Global Cooling |  | SciSafe |  | CBS |  | Total
Depreciation | $ | — |  |  | $ | 1,384 |  |  | $ | — |  |  | $ | 1,384 |
Amortization | $ | — |  |  | $ | 453 |  |  | $ | — |  |  | $ | 453 |
Stock-based compensation | $ | 4,191 |  |  | $ | 1,438 |  |  | $ | 1,161 |  |  | $ | 6,790 |
Interest expense, net | $ | 42 |  |  | $ | 7 |  |  | $ | 58 |  |  | $ | 107 |
Capital expenditures | $ | 26 |  |  | $ | 990 |  |  | $ | 149 |  |  | $ | 1,165 |
All divested entities had no remaining balances as of June 30, 2025 or December 31, 2024.

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- 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
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