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Discontinued Operations and Held for Sale
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations and Held for Sale

Note 2. Discontinued Operations and Held for Sale

 

As noted in Note 1 – Nature of Business and Significant Accounting Policies, on September 16, 2024, the Company entered into the Purchase Agreement to sell its Telematics Business. As a result, within these condensed consolidated financial statements, the assets and liabilities associated with the Telematics Business disposal group have been classified as held for sale within the Condensed Consolidated Balance Sheet and its operations have been classified as discontinued operations within the Condensed Consolidated Statements of Operations and Comprehensive Income.

 

The following table summarizes Income from discontinued operations, net of tax included in the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (in thousands):

 

                    
   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
   2024   2023   2024   2023 
Services and other revenues  $7,862   $7,226   $22,895   $21,567 
Services and other cost of revenues   3,222    3,166    9,876    9,022 
Gross profit from discontinued operations   4,640    4,060    13,019    12,545 
Operating costs and expenses:                    
Research and development   293    473    967    1,345 
Sales and marketing   1,289    1,255    3,625    3,698 
General and administrative   1,884    1,146    4,799    3,404 
Depreciation and amortization   360    392    1,060    1,112 
Total operating costs and expenses   3,826    3,266    10,451    9,559 
Operating income from discontinued operations   814    794    2,568    2,986 
Other (expense) income:                    
Interest income, net   3    3    10    8 
Other income (expense), net   875    (623)   1,128    824 
Income from discontinued operations before income taxes   1,692    174    3,706    3,818 
Income tax provision (benefit)   266    (46)   674    555 
Income from discontinued operations, net of tax  $1,426   $220   $3,032   $3,263 

 

The following table summarizes the held for sale assets and liabilities included in the Condensed Consolidated Balance Sheet (in thousands):

 

          
   September 30,   December 31, 
   2024   2023 
ASSETS        
Current assets:          
Cash and cash equivalents  $2,775   $5,110 
Accounts receivable, net   4,803    4,414 
Inventories   2,092    2,325 
Prepaid expenses and other   380    274 
Current assets held for sale (*)   10,050    12,123 
Non-current assets:          
Property, plant and equipment, net   323    369 
Rental assets, net   4,932    5,083 
Intangible assets, net   990    1,422 
Goodwill   17,973    17,973 
Operating lease right-of-use assets   1,503    1,390 
Non-current assets held for sale (*)   25,721    26,237 
Total assets held for sale (*)  $35,771   $38,360 
LIABILITIES          
Current liabilities:          
Accounts payable  $1,650   $1,387 
Accrued expenses and other current liabilities   6,410    5,973 
Current liabilities held for sale (*)   8,060    7,360 
Long-term liabilities:          
Operating lease liabilities   1,335    1,067 
Deferred tax liabilities, net   600    568 
Other long-term liabilities   5    9 
Non-current liabilities held for sale (*)   1,940    1,644 
Total liabilities held for sale (*)  $10,000   $9,004 

 

(*) Assets and liabilities of the held for sale Telematics Business are presented as current in the Condensed Consolidated Balance Sheet at September 30, 2024, as the Company expects to complete the disposition within one year.

 

As permitted under ASC 205-20-50-5b(2), the Company has elected not to adjust the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 to exclude cash flows attributable to discontinued operations. The table below sets forth, for the periods presented, significant selected financial information related to discontinued activities included in the accompanying condensed consolidated financial statements (in thousands):

 

                    
   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
   2024   2023   2024   2023 
Non-cash items included in net (loss) income:                    
Depreciation and amortization  $969   $1,032   $2,921   $2,867 
Share-based compensation  $35   $144   $101   $390 
Cash flows from investing activities:                    
Purchases of property, plant and equipment  $(14)  $(173)  $(17)  $(334)
Non-cash investing activities:                    
Transfer of inventories to rental assets  $698   $412   $2,043   $1,077 
Right-of-use assets obtained in exchange for operating leases liabilities  $362   $93   $508   $1,030