Discontinued Operations

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Assets Held for Sale [Abstract]

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.