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Discontinued Operations
 12 Months Ended
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

NOTE 4—Discontinued Operations

 

In early 2015, the Company’s Board of Directors decided that it would no longer continue to fund USSI’s activities following the significant decline in oil prices which led to significantly reduced demand for USSI’s products. At that time, USSI effectively suspended operations and terminated substantially all employees.

 

USSI granted a lien to its bank (the “Bank”) on substantially all of its assets including intellectual property. The debt due to the Bank under USSI’s line-of-credit matured in January 2015 and became due on demand. The debt was bore interest at the default rate of 11.5% per annum. The Company did not guarantee the line-of-credit.

 

Beginning in April 2015, the Company worked with the Bank in an attempt to sell the USSI assets for the benefit of all stakeholders, but was unsuccessful. On September 25, 2015, the Bank held a public auction of the USSI assets and received no offers. The Bank submitted a credit bid for $725 and acquired all the assets of USSI.

 

On September 28, 2015, the Board of Directors of USSI approved a motion to file a voluntary petition for protection under Chapter 7 of the United States Bankruptcy Code (a “Chapter 7 Bankruptcy”). Such filing was made on September 30, 2015. Under a Chapter 7 Bankruptcy, control of USSI no longer rests with the Company, but rather with a court-appointed trustee. Accordingly, effective September 30, 2015, the Company is no longer consolidating the assets, liabilities or operating results of USSI and recorded a loss of $401 on the deconsolidation of USSI which is included in Loss from discontinued operations, net of income taxes in the Company's Consolidated Statements of Operations.

 

Assets and liabilities related to the discontinued operations of USSI are as follows:

 

    As of  
    December 31, 2014     September 29, 2015
– prior to deconsolidation		  
Cash and cash equivalents   $ 52     $ —  
Other current assets     91       —  
Total assets   $ 143     $ —  
Short-term bank credit   $ 1,460     $ 999  
Accounts payable     1,006       1,029  
Accrued payroll, payroll taxes and social benefits     346       90  
Other current liabilities     1,881       1,721  
Total liabilities   $ 4,693     $ 3,839  

 

USSI’s losses for the years ended December 31, 2014 and 2015 are included in “Loss from discontinued operations, net of income taxes” in the Company's Consolidated Statements of Income. Summarized financial information for USSI’s operations for the years ended December 31, 2014 and 2015 are presented below:

 

    Year ended December 31,  
    2014     2015  
Revenues   $ 556     $ 163  
Gross profit   $ (1,043 )   $ (68 )
                 
Net loss   $ (19,140 )   $ (772 )
Loss on deconsolidation     —     $ (401 )
 Loss from discontinued operations, net of income taxes   $ (19,140 )   $ (1,173 )

 

Net loss includes stock-based compensation expense of $79 and $4 in the years ended December 31, 2014 and 2015, respectively.