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Discontinued Operations
 12 Months Ended
Dec. 31, 2024
Discontinued Operations [Abstract]  
Discontinued Operations
2. Discontinued Operations

 

During the fourth quarter of 2023 the Company decided to phase out the product business and as a consequence terminate production at the Pronode Technologies AB facilities in Kungsbacka, Sweden. Subsequently, we commenced the phase out of our TSM product business during the first quarter of 2024 through licensing of the TSM technology to strategic partners or outsourcing. In May 2024, we stopped producing TSMs and started to shut down the factory. The facility lease terminated as of September 30, 2024 and was not renewed.

 

The Company concluded that the termination of TSM manufacturing met the criteria for discontinued operations. As a result, this business has been reclassified to discontinued operations in these consolidated financial statements for all periods presented.

Assets and Liabilities of Discontinued Operations

 

Assets and liabilities of discontinued operations are presented separately in the condensed consolidated balance sheets for all periods presented. On December 31, 2024 and December 31, 2023, these balances consisted of assets and liabilities of the Company’s Products business.

 

The following table presents a reconciliation of the carrying amounts of the major classes of these assets and liabilities to the assets and liabilities of discontinued operations as presented on the Company’s consolidated balance sheets:

 

   December 31, 
(in thousands)  2024   2023 
ASSETS OF DISCONTINUED OPERATIONS        
Current assets of discontinued operations:        
Accounts receivable and unbilled revenues, net  $-   $265 
Inventory   -    610 
Prepaid expenses and other current assets   -    47 
Total current assets of discontinued operations   -    922 
           
Non-current assets of discontinued operations:          
Property and equipment, net   -    230 
Operating lease right-of-use assets, net   -    54 
Total non-current assets of discontinued operations   -    284 
Total assets of discontinued operations  $-   $1,206 
           
LIABILITIES OF DISCONTINUED OPERATIONS          
Current liabilities of discontinued operations:          
Accounts payable  $-   $40 
Accrued payroll and employee benefits   -    87 
Accrued expenses   -    45 
Contract liabilities   -    8 
Current portion of finance lease obligations   -    25 
Current portion of operating lease obligations   -    54 
Total current liabilities of discontinued operations   -    259 
           
Non-current liabilities of discontinued operations:          
Finance lease obligations, net of current portion   -    17 
Total non-current liabilities of discontinued operations   -    17 
Total liabilities of discontinued operations  $-   $276 

 

Loss from Discontinued Operations

 

Discontinued operations for the years ended December 31, 2024 and 2023, respectively, consists of results from the Company’s products business.

The following table provides details about the major classes of line items constituting “Loss from discontinued operations” as presented on the Company’s condensed consolidated statements of operations:

 

   Years ended December 31, 
(in thousands)  2024   2023 
Revenues:        
Products  $1,171   $620 
Total revenues   1,171    620 
           
Cost of revenues:          
Products   989    4,168 
Loss on purchase commitment   -    362 
Total cost of revenues   989    4,530 
           
Gross (loss) margin   182    (3,910)
           
Operating expenses:          
Sales and marketing   165    - 
General and administrative   590    1,097 
Total operating expenses   755    1,097 
           
Operating loss   (573)   (5,007)
Other income (expense), net   (18)   - 
Loss from discontinued operations  $(591)  $(5,007)

 

Cash Flows Information

 

The following table presents cash flow information for discontinued operations:

 

   Year ended December 31, 
(in thousands)  2024   2023 
Depreciation and amortization  $19   $47 
Amortization of operating lease ROU assets   52    65 
Inventory impairment loss   357    3,572 
Bad debt expense   172    - 
Purchase of property and equipment   -    (123)
Proceeds from sale of property and equipment   190    -