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Note 20 - Discontinued Operations

3 Months Ended

Sep. 30, 2024

Notes to Financial Statements

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

Note 20 - Discontinued Operations

On July 31, 2024, after the wind down of operations, the Company entered into a definitive agreement to divest its Consumer Health business to a private, e-commerce focused company. The divested business encompasses the established e-commerce platform, certain inventory and associated consumer brands, intellectual property, external workforce and contracts, and provides for the Company to receive contingent consideration payments on certain future sales of former Consumer Health business products.

The accounting requirements for reporting the Consumer Health business as discontinued operation were met when the wind down and divestiture was completed on July 31, 2024. Accordingly, the accompanying unaudited consolidated financial statements for all periods presented reflect this business as a discontinued operation and certain assets and liabilities of discontinued operations have been reclassified to the current assets of discontinued operations; non-current assets of discontinued operations; and current liabilities of discontinued operations financial statement line items on the accompanying unaudited consolidated balance sheet as of June 30, 2024. The Company elected to record the contingent consideration portion of the arrangement when the consideration is determined to be realizable and, therefore, the Company did not record a contingent consideration asset at the transaction date and any subsequent proceeds will not be recognized until the contingent consideration asset is realizable, at which point the Company will recognize it to income (loss) from discontinued operations.

The key components of net income (loss) from discontinued operations, net of tax for the three months ended September 30, 2024, and 2023, were as follows:

		*Three Months Ended*
		*September 30,*
		*2024*				*2023*
		(in thousands)
Net revenue		$	717			$	4,282
Cost of sales			(359	)			(2,536	)
Selling and marketing			(155	)			(1,331	)
General and administrative			(2	)			(670	)
Amortization of intangible assets			—				(382	)
Non-operating other expense, net			(4	)			(10	)
Recognized contingent consideration			412				—
Loss on divestiture			(254	)			—
Income (loss) from discontinued operations before income taxes			355				(647	)
Income tax benefit			26				—
Net income (loss) from discontinued operations, net of tax		$	381			$	(647	)

The key components of assets and liabilities of discontinued operations as of June 30, 2024, were as follows:

		*June 30,*
		*2024*
		(in thousands)
ASSETS
Current assets of discontinued operations:
Accounts receivable, net		$	91
Inventories			492
Prepaid expenses and other current assets			538
Total current assets of discontinued operations			1,121
Non-current assets of discontinued operations:
Other non-current assets			44
Total current and non-current assets of discontinued operations		$	1,165

LIABILITIES
Current liabilities of discontinued operations:
Accounts payable		$	126
Accrued liabilities			431
Total current liabilities of discontinued operations		$	557