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Discontinued Operations | 9 Months Ended
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Sep. 30, 2025
Discontinued Operations and Assets Held for Sale [Abstract] |
Discontinued Operations | 2. Discontinued Operations On March 7, 2025, the Company’s Board of Directors authorized a strategy to transition to a pure-play Power company, focusing its investments on the Power Analog Solutions and Power IC businesses to enhance profitability and maximize shareholder value. As part of this strategy, the Company explored all strategic options including a sale, merger, joint venture, licensing, and wind-down for its Display business (Display IC products). However, the Company was not able to consummate a transaction following several months of discussions with several interested parties on terms that the Company’s Board of Directors believed were in the best interests of the Company and its stockholders. Accordingly, on April 6, 2025, the Company’s Board of Directors unanimously approved the plan to shut down the Company’s Display business (the “Discontinued Business”), including the liquidation of MMS, the Company’s indirect wholly owned subsidiary that operated the Discontinued Business. As a result, the Display business qualifies as a discontinued operation in accordance with ASC 205-20. The following table summarizes the results from discontinued operations, net of tax, for the three and nine months ended September 30, 2025 and 2024 (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |  |  | September 30, 2025 |  |  | September 30, 2024 |
Net sales |  | $ | 7,233 |  |  | $ | 11,026 |  |  | $ | 24,519 |  |  | $ | 23,426 |
Cost of sales |  |  | 3,693 |  |  |  | 7,071 |  |  |  | 14,200 |  |  |  | 15,047 |
Gross profit |  |  | 3,540 |  |  |  | 3,955 |  |  |  | 10,319 |  |  |  | 8,379 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses |  |  | (49 | ) |  |  | 2,570 |  |  |  | 1,535 |  |  |  | 6,748 |
Research and development expenses |  |  | 326 |  |  |  | 7,901 |  |  |  | 9,579 |  |  |  | 19,772 |
Early termination charges |  |  | — |  |  |  | — |  |  |  | 1,561 |  |  |  | — |
Impairment and other charges |  |  | 5,171 |  |  |  | — |  |  |  | 12,758 |  |  |  | — |
Total operating expenses |  |  | 5,448 |  |  |  | 10,471 |  |  |  | 25,433 |  |  |  | 26,520 |
Operating loss from discontinued operations |  |  | (1,908 | ) |  |  | (6,516 | ) |  |  | (15,114 | ) |  |  | (18,141 | )
Interest income |  |  | 0 |  |  |  | 112 |  |  |  | 215 |  |  |  | 278 |
Interest expense |  |  | (30 | ) |  |  | (102 | ) |  |  | (272 | ) |  |  | (223 | )
Foreign currency gain (loss), net |  |  | 132 |  |  |  | (181 | ) |  |  | (296 | ) |  |  | (104 | )
Other income, net |  |  | 58 |  |  |  | — |  |  |  | 202 |  |  |  | — |
Loss from discontinued operations before income tax expense (benefit), net |  |  | (1,748 | ) |  |  | (6,687 | ) |  |  | (15,265 | ) |  |  | (18,190 | )
Income tax expense (benefit), net |  |  | 733 |  |  |  | (991 | ) |  |  | 923 |  |  |  | 233 |
Loss from discontinued operations, net of tax |  | $ | (2,481 | ) |  | $ | (5,696 | ) |  | $ | (16,188 | ) |  | $ | (18,423 | )
For the nine months ended September 30, 2025, the Company recognized the impairment charges of $ 12,424 thousand, primarily related to certain design tool software contracts in connection with the shutdown of the Display business. The following table presents the major classes of assets of the discontinued operations that were included in the consolidated balance sheets (in thousands):
|  | September 30, 2025 |  |  | December 31, 2024 |
Accounts receivable, net |  | $ | 4,765 |  |  | $ | 4,797 |
Inventories, net |  |  | 2,593 |  |  |  | 3,698 |
The following table provides supplemental cash flows information related to discontinued operations (in thousands):
|  | Nine Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |
Significant non-cash operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 376 |  |  | $ | 1,183 |
Provision for severance benefits |  |  | (225 | ) |  |  | 979 |
Stock-based compensation |  |  | (353 | ) |  |  | 576 |
Impairment charges |  |  | 12,424 |  |  |  | — |
Investing activities: |  |  |  |  |  |  |  |
Capital expenditures |  | $ | (99 | ) |  | $ | (1,597 | )
Although the Company has ceased active operations of its Display business, it continues to have limited involvement after the shutdown. Specifically, the Company’s Korean subsidiary, MSK, continues to fulfill remaining customer obligations, including the sale of certain “end of life” (“EOL”) Display products. A small team has been retained to manage the transition and to provide ongoing customer support. As such, the result of these limited ongoing activities do not qualify for presentation as part of continuing operations and are instead presented as part of discontinued operations. The following table presents the revenue, gross profit and operating expenses related to the Company’s continuing involvement with the Discontinued Business for the periods presented (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2025 |
Net sales |  | $ | 7,233 |  |  | $ | 9,551 |
Gross profit |  |  | 3,540 |  |  |  | 4,473 |
Operating expenses |  |  | 342 |  |  |  | 485 |
The sale of EOL Display products and the potential monetization of the intellectual property assets of the Discontinued Business are currently expected to generate cash inflow of approximately $20 million over a period of approximately 2 years from the second half of 2025, depending upon customer demand and monetization efforts of the Display intellectual property assets. The total estimated cash cost of the liquidation is approximately $12 to $15 million, which is expected to be offset by the cash inflow that may be generated as described above. The one-time liquidation cost is expected to consist of statutory severance and other employee-related costs, contract termination charges and other associated costs. Of this estimated total cash cost, the Company paid $6.5 million of statutory severance and other employee-related costs in the second quarter of 2025. Further, the Company originally expected to pay certain contract termination charges in full along with the statutory severance and other employee-related costs, but negotiated with the respective vendors for those contract termination charges totaling $6.5 million to be paid over the duration of the remaining existing contract terms.

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