v3.23.3

Discontinued Operations | 12 Months Ended
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Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 3. Discontinued Operations On November 3, 2022, the Company announced it is seeking to divest its contract development and manufacturing organization (iBio CDMO, LLC) in order to complete its transformation into an antibody discovery and development company. In conjunction with the divestment, the Company commenced a workforce reduction of approximately 60% of the current Company staffing levels (a reduction of approximately 69 positions). The Company substantially completed the employee reduction by January 2, 2023. Through the process of seeking to divest its contract development and manufacturing organization, the Company continues to market for sale the 130,000 square foot cGMP facility location in Bryan, Texas (the “Facility”). Additionally, on February 10, 2023, the Company entered into an Auction Sale Agreement (the “Auction Sale Agreement”) with Holland Industrial Group, together with Federal Equipment Company and Capital Recovery Group LLC (collectively, the “Auctioneers”) for the sale at public auction of equipment and other tangible personal property (the “Equipment”) located at the Facility. The Auctioneers guaranteed an amount of gross proceeds from the sale of the equipment of $2.1 million, which was paid to the Company on February 17, 2023. The auction, which commenced on March 24, 2023 and concluded on March 30, 2023, resulted in total proceeds of approximately $2.9 million. In accordance with the Auction Sale Agreement, the Company received 80% of the excess proceeds, after Holland Industrial Group’s $0.2 million fee. Total proceeds received in Fiscal 2023 were approximately $2.6 million. The Company incurred pre-tax charges of approximately $1.9 million for the employee reduction which consisted of severance obligations, continuation of salaries and benefits over a 60-day transitional period during which impacted employees remained employed but were not expected to provide active service, and other customary employee benefit payments in connection with an employee reduction. The Company recorded a charge in discontinued operations for approximately $35.7 million in Fiscal 2023, of which approximately $17.9 million was the result of a fixed asset impairment charge (see Note 11 – Fixed Assets for more information), approximately $4.9 million to write down inventory to its net realizable value, approximately $7.5 million of personnel costs including severance and the balance related to operational costs related to winding down the CDMO business. As such, the results of iBio CDMO's operations are reported as discontinued operations for the year ended June 30, 2023. The Company has retrospectively recast its consolidated statement of operations for the year ended June 30, 2022 presented. In addition, those assets and liabilities associated with the discontinued operations of the CDMO that the Company intends to sell have been classified as “held for sale” as of June 30, 2023. The Company has retrospectively recast its consolidated balance sheet as of June 30, 2022 for assets and liabilities held for sale. The Company has chosen not to segregate the cash flows of iBio CDMO in the consolidated statements of cash flows. Supplemental disclosures related to discontinued operations for the statements of cash flows have been provided below. Unless noted otherwise, discussion in the Notes to the Consolidated Financial Statements refers to the Company's continuing operations. The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the loss from discontinued operations presented separately in the consolidated statements of operations (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended June 30,
​ | ​ | 2023 | ​ | 2022
Revenues | ​ | $ | 391 | ​ | $ | 499
Cost of goods sold | ​ | ​ | 52 | ​ | ​ | 216
Gross profit | ​ | ​ | 339 | ​ | ​ | 283
Operating expenses: | ​ | ​ | ​ | ​ | ​ | ​
Research and development | ​ | ​ | 6,344 | ​ | ​ | 7,902
General and administrative | ​ | ​ | 6,751 | ​ | ​ | 12,373
Fixed asset impairments | ​ | ​ | 17,900 | ​ | ​ | —
Gain on sale of fixed assets | ​ | ​ | (773) | ​ | ​ | —
Inventory reserve | ​ | ​ | 4,915 | ​ | ​ | —
Total operating expenses | ​ | ​ | 35,137 | ​ | ​ | 20,275
​ | ​ | ​ | ​ | ​ | ​ | ​
Other income (expenses): | ​ | ​ | ​ | ​ | ​ | ​
Interest expense - term note payable | ​ | ​ | (900) | ​ | ​ | (602)
Interest expense - related party | ​ | ​ | — | ​ | ​ | (810)
Forgiveness of note payable and accrued interest - SBA loan | ​ | ​ | — | ​ | ​ | 607
Other | ​ | ​ | (1) | ​ | ​ | 6
Total other expenses | ​ | ​ | (901) | ​ | ​ | (799)
​ | ​ | ​ | ​ | ​ | ​ | ​
Loss from discontinued operations | ​ | $ | (35,699) | ​ | $ | (20,791)
​ The following table presents net carrying values related to the major classes of assets that were classified as held for sale at June 30, 2023 and 2022 (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ | ​ | 2023 | ​ | 2022
Current assets: | ​ | ​ | ​ | ​ | ​ | ​
Inventory | ​ | $ | — | ​ | $ | 3,900
Operating lease right-of-use assets | ​ | ​ | 1,941 | ​ | ​ | —
Property and equipment, net | ​ | ​ | 16,124 | ​ | ​ | —
Total current assets | ​ | $ | 18,065 | ​ | $ | 3,900
​ | ​ | ​ | ​ | ​ | ​ | ​
Other assets: | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment, net | ​ | $ | — | ​ | $ | 35,289
Finance lease right-of-use assets | ​ | ​ | — | ​ | ​ | 74
Operating lease right-of-use assets | ​ | ​ | — | ​ | ​ | 1,951
Total other assets | ​ | $ | — | ​ | $ | 37,314
​ | ​ | ​ | ​ | ​ | ​ | ​
Current liabilities: | ​ | ​ | ​ | ​ | ​ | ​
Finance lease obligation | ​ | $ | — | ​ | $ | 46
Operating lease obligation | ​ | ​ | 1,941 | ​ | ​ | 10
Total current liabilities | ​ | $ | 1,941 | ​ | $ | 56
​ | ​ | ​ | ​ | ​ | ​ | ​
Long-term liabilities: | ​ | ​ | ​ | ​ | ​ | ​
Finance lease obligation | ​ | $ | — | ​ | $ | 30
Operating lease obligation | ​ | ​ | — | ​ | ​ | 1,941
Total long-term liabilities | ​ | $ | — | ​ | $ | 1,971
​ ​ The following table presents the supplemental disclosures related to discontinued operations for the cash flows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended June 30,
​ | ​ | 2023 | ​ | 2022
Depreciation expense | ​ | $ | 273 | ​ | $ | 2,275
Amortization of finance lease right-of-use assets | ​ | ​ | 20 | ​ | ​ | 599
Purchase of fixed assets | ​ | ​ | 1,542 | ​ | ​ | 5,809
Fixed asset impairments | ​ | ​ | 17,900 | ​ | ​ | —
Inventory reserve | ​ | ​ | 4,915 | ​ | ​ | —
Sales proceeds of fixed assets | ​ | ​ | 2,600 | ​ | ​ | —
Investing non-cash transactions: | ​ | ​ | ​ | ​ | ​ | ​
Increase in ROU operating assets and liabilities for new leases | ​ | ​ | — | ​ | ​ | 1,952
Fixed assets included in accounts payable in prior period, paid in current period | ​ | ​ | 1,542 | ​ | ​ | 791
Unpaid fixed assets included in accounts payable | ​ | ​ | — | ​ | ​ | 1,542
Termination of finance ROU assets including issuance of warrant | ​ | ​ | — | ​ | ​ | 25,386
Note payable to acquire Facility | ​ | ​ | — | ​ | ​ | 22,375
Issuance of warrant for final lease obligation payment | ​ | ​ | — | ​ | ​ | 217
​ | ​ | ​ | ​ | ​ | ​ | ​
Supplemental cash flow information: | ​ | ​ | ​ | ​ | ​ | ​
Cash paid during the period for interest | ​ | ​ | 603 | ​ | ​ | 1,045
​

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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