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Discontinued Operations

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

14.

Discontinued Operations

As described in Note 1, the Company entered into a Stock Purchase Agreement with Purchaser, pursuant to which the Company sold on April 11, 2022 all of the issued and outstanding shares of capital stock of its wholly-owned subsidiary, MTI Instruments for approximately $9.25 million in cash. As of March 31, 2022, our Instrumentation business segment was classified as discontinued operations in our financial statements for all periods presented. Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of equity and statements of cash flows combine continuing and discontinuing operations.

Set forth below are the results of the discontinued operations:

(Dollars in thousands)		Three Months Ended March 31, 2022				Three Months Ended March 31, 2021^(*)

Product revenue		$	1,640			$	1,337
Cost of sales			561				451
Research and development			369				386
Selling, general, and administrative			484				540
Net income (loss) from discontinued operations		$	226			$	(40	)

(*)

Reclassified to conform with the current period presentation

The following table summarizes information about assets and liabilities from discontinued operations held for sale as of March 31, 2022 and December 31, 2021:

(Dollars in thousands)
		March 31,				December 31,
		2022				2021
Assets held for sale from discontinued operations:
Accounts receivable		$	1,001			$	1,189
Inventories			1,021				964
Prepaid expenses and other current assets			40				54
Property, plant and equipment, net			77				92
Deferred tax assets, net			101				101
Operating lease right-of-use assets			579				628
Total Assets held for sale from discontinued operations		$	2,819			$	3,028

Liabilities held for sale from discontinued operations:
Accounts payable		$	191			$	136
Accrued liabilities			529				479
Operating lease liability			578				628

Total Liabilities held for sale from discontinued operations		$	1,298			$	1,243

MTI Instruments sells its products on a worldwide basis with its principal markets listed in the table below where information on product revenue is summarized by geographic area for the Company as a whole for each of the years ended December 31:

(Dollars in thousands)		Three Months Ended March 31, 2022				Three Months Ended March 31, 2021

Product revenue:
United States		$	836			$	909
Association of South East Asian Nations (ASEAN)			743				242
Europe, the Middle East and Africa (EMEA)			57				166
Americas (Canada, Mexico, South America)			4				20

Total product revenue		$	1,640			$	1,337

Product revenues are attributed to regions based on the location of customers. For the three months ended as of March 31, 2022 and 2021 approximately 49.0% and 32.0%, respectively, of our product revenues was from customers outside of the United States.

At MTI Instruments, the largest commercial customer for the 3 months ended March 31, 2022 and 2021 represented 19.0% and 14.7%, respectively and the largest governmental agency represented 0% and 17.2%, respectively of MTI Instruments product revenue.