v3.23.2
Note 3 - Discontinued Operations
12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations

 

On April 3, 2023, the Company completed the sale of its DSUVIA business to Alora. The disposal of the DSUVIA business represents a strategic shift that will have a major qualitative effect on its personnel resources and quantitative effect on its financial results. Accordingly, the Company concluded, pursuant to ASC 205-20,Presentation of Financial StatementsDiscontinued Operations”, that the disposal should be presented as discontinued operations in the consolidated balance sheets as of December 31, 2022 and 2021 and in the consolidated statements of operations as discontinued operations, net of tax, for the years ended December 31, 2022 and 2021. As such, the consolidated financial statements herein have been presented in accordance with ASC 205-20. Net loss from discontinued operations for the years ended December 31, 2022 and 2021, is as follows:

 

 

Year ended December 31,

 

 

2022

  

2021

 

Total revenues

 $1,771  $2,440 

Cost of goods sold

  1,508   1,959 

Selling, general and administrative expense

  9,744   16,670 

Research and development expenses

 

1,852   1,660 

Loss from operations

  11,333   17,849 

Interest expense

 

37   98 

Loss from discontinued operations before loss on disposal

 $11,370  $17,947 

 

The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented (in thousands).

 

 

  

 

 

December 31, 2022

  

December 31, 2021

 

Cash and cash equivalents

 $  $ 

Accounts receivable, net

  309   160 

Inventories

  1,178   1,111 

Prepaid expenses and other current assets

  444   577 

Total current assets of discontinued operations

  1,931   1,848 

Property, plant and equipment, net

  10,261   11,021 

Operating lease right-of-use assets

  3,499   4,031 

Other assets

  176   196 

Total non-current assets of discontinued operations

  13,936   15,248 

Total assets of discontinued operations

 $15,867  $17,096 

 

  

 

Accounts payable

 $784  $1,204 

Accrued liabilities

  1,720   3,008 

Operating lease liabilities, current portion

  1,601   886 

Note payable, current portion

  400   463 

Deferred revenue, current portion

  115   87 

Total current liabilities of discontinued operations

  4,620   5,648 

Operating lease liabilities, net of current portion

  2,959   3,649 

Deferred revenue, net of current portion

  1,036   1,151 

Total non-current liabilities of discontinued operations

  3,995   4,800 

Total liabilities of discontinued operations

  8,615   10,448 

Net assets of discontinued operations

 $7,252  $6,648 

 ​

 

The following table presents the significant non-cash items for the discontinued operations that are included in the consolidated statements of cash flows (in thousands):

 

 

Year Ended December 31,

 

 

2022

   

2021

 

Cash flows from operating activities:

         

Depreciation and amortization

 $1,465   $1,537 

Stock-based compensation

  250    779 

Inventory impairment charge

  40    723 

Non-cash interest expense related to debt financing

  (37)   (98)