XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Note 4 - Held for Sale and Discontinued Operation | 3 Months Ended
--- | ---
Mar. 31, 2024
Notes to Financial Statements |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
NOTE 4: | HELD FOR SALE AND DISCONTINUED OPERATION
On September 14, 2023, the Company and Intrinsix, then its wholly owned subsidiary, entered into a Share Purchase Agreement (the “Agreement”) with Cadence Design Systems, Inc. (“Cadence”), pursuant to which Cadence agreed to purchase all of the issued and outstanding capital shares of Intrinsix from the Company for $35,000 in cash, subject to other certain purchase price adjustments as provided for in the Agreement (the “Transaction”). The closing of the Transaction occurred on October 2, 2023. At the closing, an amount of $300 from the consideration was deposited with a third-party escrow agent for the purposes of satisfying any additional post-closing purchase price adjustments owed by the Company to Cadence (was fully paid to the Company during the first quarter of 2024), a further amount of $3,500 of the consideration was deposited with the same escrow agent for a period of 18 months as security for the Company’s indemnification obligations to Cadence in accordance with the terms and conditions set forth in the Agreement, and after giving effect to post-closing adjustments resulting in a $240 repayment to the Company during the first quarter of 2024. The Agreement includes certain representations, warranties and covenants of the parties, and the Company also agreed to certain non-competition and non-solicitation terms, which are subject to certain exceptions. Under ASC 205-20, "Discontinued Operation" when a component of an entity, as defined in ASC 205-20, has been disposed of or is classified as held for sale, the results of its operations, including the gain or loss on its component are classified as discontinued operations and the assets and liabilities of such component are classified as assets and liabilities attributed to discontinued operations; that is, provided that the operations, assets and liabilities and cash flows of the component have been eliminated from the Company’s consolidated operations and the Company will have no significant continuing involvement in the operations of the component. As a result of the Transaction, Intrinsix's results of operations and asset and liability balances are disclosed as a discontinued operation. All prior periods comparable results of operation, assets and liabilities have been retroactively included in discontinued operations. The following table shows the Company's results of discontinued operation for the below presented period:
|  | Three months ended March 31, 2023 (unaudited) |
Revenues |  | $ | 2,473 |
Cost of revenue |  |  | 1,807 |
Gross profit |  |  | 666 |
Operating expenses: |  |  |  |
Research and development, net |  |  | 2,117 |
Sales and marketing |  |  | 326 |
General and administrative |  |  | 221 |
Amortization of intangible assets |  |  | 175 |
Total operating expenses |  |  | 2,839 |
Operating loss |  |  | (2,173 | )
Financial income, net |  |  | — |
Loss from discontinued operations before taxes on income |  |  | (2,173 | )
Income tax expense |  |  | — |
Net loss from discontinued operation |  | $ | (2,173 | )
The following table presents cash flows from discontinued operations:
|  | Three months ended March 31, 2023 (unaudited) |
Net cash flows used in operating activities (*) |  | $ | (1,230 | )
(*) Amortization and depreciation allocated to discontinued operation for the three-month period ended March 31, 2023 amounted to $492.

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