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Note 2 - Discontinued Operations

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

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 condensed 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 September 30, 2025 and December 31, 2024, 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 condensed consolidated balance sheets (in thousands):

		September 30, 2025				December 31, 2024
ASSETS OF DISCONTINUED OPERATIONS
Current assets of discontinued operations:
Accounts receivable and unbilled revenues, net		$	41			$	-
Total current assets of discontinued operations			41				-
Total assets of discontinued operations		$	41			$	-

Income (Loss) from Discontinued Operations

Discontinued operations for the three and nine months ended September 30, 2025 and 2024, respectively, consists of results from the Company’s products business.

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

		Three months ended								Nine months ended
		September 30,								September 30,
		2025				2024				2025				2024
Revenues:
Products		$	226			$	85			$	338			$	908
Total revenues			226				85				338				908

Cost of revenues:
Products			12				(19	)			48				822
Total cost of revenues			12				(19	)			48				822
Gross margin			214				104				290				86

Operating expenses:
Sales and marketing			(36	)			-				(143	)			-
General and administrative			-				148				-				573
Total operating expenses			(36	)			148				(143	)			573

Operating income (loss)			250				(44	)			433				(487	)
Other income (expense), net			-				-				-				19
Loss before provision for income taxes			250				(44	)			433				(468	)
Net income (loss)		$	250			$	(44	)		$	433			$	(468	)

Cash Flows Information

The following table presents cash flow information for discontinued operations (in thousands):

		Three months ended								Nine months ended
		September 30,								September 30,
		2025				2024				2025				2024
Depreciation and amortization		$	-			$	1			$	-			$	19
Amortization of operating lease ROU assets			-				18				-				52
Inventory impairment loss			-				287				-				287
Purchase of property and equipment			-				-				-				(37	)
Proceeds from sale of property and equipment			-				-				-				190