Discontinued Operations

6 Months Ended

Jun. 30, 2020

Discontinued Operations And Disposal Groups [Abstract]

7.	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, respectively. The following table summarizes the calculation of the loss on the sale of the cell therapy business, which was finalized during the fourth quarter of 2019 (in thousands):


Consideration received	$	7,000
Transaction costs		(1,363	)
Net cash proceeds		5,637
Less:
Carrying value of business and assets sold		12,145
Net loss on sale of business	$	(6,508	)

There were no assets or liabilities related to discontinued operations as of June 30, 2020 or December 31, 2019.

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 and six months ended June 30, 2020.



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019

Product revenue	$	197		$	901
Cost of revenue		199			857
Gross profit		(2	)		44
Operating expenses:
Research and development		237			656
Sales and marketing		97			411
General and administrative		39			185
Total operating expenses		373			1,252
Operating loss		(375	)		(1,208	)
Other income (expense)		(5)			142
Loss from discontinued operations	$	(380	)	$	(1,066	)

During the three and six months ended June 30, 2019, 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 revenue and costs of product revenues for these periods have been recorded in loss from discontinued operations in the consolidated condensed statements of operations and comprehensive loss.

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


	Six Months Ended June 30,
	2020		2019
Depreciation and amortization	$	—	$	467
Provision for excess inventory	$	—	$	—
Loss on asset disposal	$	—	$	—