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DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2014
Discontinued Operations  
DISCONTINUED OPERATIONS
 
9. DISCONTINUED OPERATIONS

 

On August 10, 2012, the Company entered into an agreement with Sinclair Pharmaceuticals Limited (“Sinclair”) to terminate, effective September 30, 2012, the distribution agreements relating to the promotion and sale of Xclair®, Numoisyn® Lozenges and Numoisyn® Liquid (collectively, the “ALIGN products”).

 

Product revenue, cost of goods sold and selling, general and administrative costs related to the promotion and sale of the ALIGN products have been reclassified from operating results from continuing operations to (loss) income from discontinued operations in the consolidated statement of operations for all periods presented as follows (in $000s):

 

    Three Months Ended
March 31,		     Period from
August 13,
1996
(inception) to
March 31,		  
    2013     2014     2014  
Product revenue   $ —     $ —     $ 3,604  
Cost of goods sold     —       —       (2,045 )
Selling, general and administrative     —       —       (9,295 )
Goodwill and intangible impairment     —       —       (5,187 )
Interest income     26       13       136  
Interest expense     —       —       (110 )
Gain on termination of license agreement     —       —       1,192  
Income (loss) from discontinued operations     26       13       (11,705 )
Income tax on discontinued operations     (10 )     (5 )     (376 )
Net income (loss) from discontinued operations   $ 16     $ 8     $ (12,081 )

 

The assets and liabilities associated with product promotion and sales have been classified within assets and liabilities of discontinued operations in the accompanying consolidated balance sheets (in $000s):

 

    December 31,
2013		     March 31,
2014		  
             
Current assets of discontinued operations:                
Short term portion of minimum royalty arrangement receivable, net   $ 379     $ 320  
Returns indemnification receivable     260       260  
Total current assets of discontinued operations     639       580  
Long-term assets of discontinued operations:                
Long-term portion of minimum royalty arrangement receivable, net     72       48  
Total assets of discontinued operations   $ 711     $ 628  
                 
Current liabilities of discontinued operations:                
Returns provision   $ 260     $ 260  
Total current liabilities of discontinued operations   $ 260     $ 260