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Disposal of Healthcare Assets and Other Charges | 12 Months Ended
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May 31, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Disposal of Healthcare Assets and Other Charges | 11. DISPOSAL OF HEALTHCARE ASSETS AND OTHER CHARGES On January 24, 2025, the Company entered into an Asset Purchase Agreement with DirectMed. Pursuant to the terms and subject to the conditions of the Purchase Agreement, DirectMed purchased assets of the Company used in the operation of its International Medical Equipment and Service ("IMES") business as well as ALTA tube and related inventory (the “IMES Sale”). The IMES Sale transaction closed simultaneously with the execution of the Asset Purchase Agreement on January 24, 2025. Under the terms of the Asset Purchase Agreement, the Company sold a substantial portion of the assets comprising its Healthcare reportable segment to DirectMed for an initial consideration of $8.2 million and entered into an exclusive 10-year global supply agreement in which Richardson will supply DirectMed with repaired Siemens CT X-ray tubes ("Siemens CT Supply Agreement"). Additionally, the Company will continue manufacturing a limited quantity of ALTA CT X-ray tubes exclusively for DirectMed under a supply agreement ("ALTA CT Supply Agreement"). Consideration received of $8.0 million from DirectMed was allocated between the asset sale and the ALTA CT Supply Agreement based on their respective fair values (measured using Level 3 inputs) as follows: $6.8 million allocated to the asset sale and $1.2 million allocated to the ALTA CT Supply Agreement. The consideration related to the ALTA CT Supply Agreement has been initially recorded as deferred revenue within other liabilities in the Consolidated Balance Sheets and will be recognized into income as ALTA tubes are sold. Deferred revenue as of May 31, 2025 was $0.8 million. In conjunction with the IMES Sale, other non-cash charges were incurred relating to the write-down of CT tube component inventory not transferred to the buyer and not expected to be used by the Company of $1.4 million, and an impairment of specific property, plant and equipment of $0.5 million that will be used to satisfy the ALTA CT Supply Agreement, which are included in the total loss recorded for the fiscal year ended May 31, 2025. A summary of the $5.1 million disposal loss and other charges is shown in the following table (in thousands):
Proceeds from IMES sale attributable to disposal of healthcare assets |  | $ | 6,827 |
Assets sold: |  |  |
Accounts receivable |  |  | 1,004 |
Inventories, net |  |  | 7,123 |
Property, plant and equipment, net |  |  | 264 |
Intangible assets, net |  |  | 1,117 |
Transaction related costs |  |  | 448 |
Loss on disposal of healthcare assets |  |  | (3,129 | )
Other charges: |  |  |
Loss on write-down of healthcare related inventory not disposed of |  |  | 1,420 |
Impairment of property, plant and equipment, net to satisfy ALTA CT Supply Agreement |  |  | 525 |
Total loss |  | $ | (5,074 | )

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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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