Discontinued Operations

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

During the third quarter of 2022, the Company sold its inertial navigation business. The Company determined that the sale met the requirements for reporting as discontinued operations in accordance with Accounting Standards Codification (ASC) 205-20. Please see Note 1 for further discussion. The following table presents a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operations to the amounts presented separately in the Company's consolidated balance sheet:


	December 31, 2021

Accounts receivable, net	$	5,882
Inventories, net	8,807
Prepaid expenses and other current assets	1,152
Current assets held for sale	$	15,841
Property and equipment, net	7,169

Non-current assets held for sale	$	7,169
Accounts payable	1,764
Accrued compensation and employee-related expenses	914
Accrued other	955
Accrued product warranty costs	95
Contract liabilities	211

Current liabilities held for sale	$	3,939
Other long-term liabilities	8


Non-current liabilities held for sale	$	8
Net assets held for sale	19,063

The following table presents a reconciliation of the major financial line items constituting the results for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Company's consolidated statements of operations (through August 9, 2022, the date the inertial navigation business was sold):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Sales:
Product	$	1,276	$	8,388	$	16,042	$	29,152
Service	218		208		679		837
Net sales	1,494		8,596		16,721		29,989
Costs and expenses:
Costs of product sales	1,504		5,341		12,732		17,168
Costs of service sales	169		173		457		750
Research and development	374		1,507		3,147		5,137
Sales, marketing and support	348		1,261		3,035		3,885

Other income, net	12		34		81		101
(Loss) income from discontinued operations before income tax expense	(889)		348		(2,569)		3,150
Gain on sale of discontinued operations before tax expense	30,858		—		30,858		—
Total income from discontinued operations before tax expense	$	29,969	$	348	$	28,289	$	3,150
Income tax expense on discontinued operations	228		—		228		—
Net income from discontinued operations, net of tax	$	29,741	$	348	$	28,061	$	3,150

Net income from discontinued operations per common share
Basic	$	1.59	$	0.02	$	1.51	$	0.17
Diluted	$	1.59	$	0.02	$	1.51	$	0.17

Weighted average number of common shares outstanding:
Basic	18,706		18,341		18,574		18,152
Diluted	18,706		18,566		18,574		18,152

The following table presents supplemental cash flow information of the discontinued operations:


	Nine Months Ended
	September 30,
	2022		2021

Cash (used in) provided by operating activities-discontinued operations	$	(3,853)	$	3,364
Cash used in investing activities-discontinued operations	$	(307)	$	(846)

The following table presents non-cash expenses from discontinued operations:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Depreciation	$	269	$	353	$	805	$	1,021
Compensation expense related to stock-based awards and employee stock purchase plan	$	380	$	207	$	580	$	407