Discontinued Operations

9 Months Ended

Sep. 30, 2019

Discontinued Operations And Disposal Groups [Abstract]

6.	Discontinued Operations

As explained in Note 1, on April 24, 2019 and April 25, 2019, the Company completed the sale of its cell therapy business to Lorem and Mr. Shirahama. The following table summarizes the calculation of the loss on sale of the cell therapy business, which will be finalized during the fourth quarter of 2019 (in thousands):


Consideration received	$		7,000
Transaction costs		(1,161		)
Net cash proceeds		5,839
Less:
Carrying value of business and assets sold		12,145
Net loss on sale of business	$		6,306

There were no assets or liabilities related to discontinued operations as of September 30, 2019. Assets and liabilities related to discontinued operations or held for sale as of December 31, 2018 consisted of the following:

	December 31, 2018
Assets
Current assets held for sale:
Accounts receivable, net	$	108
Inventory, net			2,841
Other current assets		328

Long-term assets held for sale:
Property and equipment, net		260
Other noncurrent assets			1,866
Goodwill			3,550
Intangible assets, net			5,957
Total assets	$		14,910

Liabilities
Current liabilities held for sale:
Accounts payable and accrued liabilities	$	580
Other noncurrent liabilities		78
Deferred revenues		167
Noncurrent liabilities	$	825

The following table summarizes the results of discontinued operations for the periods presented (in thousands). Discontinued operations did not have an impact on the Company’s results of operations during the three months ended September 30, 2019.

	Three months ended September 30,			Nine months ended September 30,
	2018			2019			2018
Product revenue	$	858		$	901		$	2,249
Costs of revenue	628			857				1,837
Gross profit	230			44				412
Operating expenses:
Research and development	689			656				2,479
Sales and marketing	337			411				1,060
General and administrative	147			185				560
Total operating expenses		1,173			1,252			4,099
Operating loss		(943	)		(1,208	)		(3,687	)
Other income (expense)	9			140			157
		(934	)	$	(1,068	)	$	(3,530	)

During the three and nine months ended September 30, 2019 and 2018, revenues from discontinued operations were related to the cell therapy business. Because of the sale of the cell therapy business to Lorem and Mr. Shirahama, all product revenues and costs of product revenues for these periods have been recorded in loss from discontinued operations in the consolidated condensed statements of operations.

Included in the statement of cash flows are the following non-cash adjustments related to the discontinued operations (in thousands):

	For the nine months ended September 30,
	2019		2018
Depreciation and amortization	$	467	$	1,207
Provision for excess inventory	$	—	$	433
Loss on asset disposal	$	—	$	23