In 2018, in a continuing effort to streamline our business and align our business strategy for further integration of services and products, the Company committed to divest the business of our full range of permanent downhole monitoring systems and related services, which had been part of our Production Enhancement segment.

On June 7, 2019, we entered into a definitive purchase agreement for approximately $16.6 million in cash. A pre-tax gain of $8.3 million was recognized in connection with this transaction, subject to adjustments for working capital purposes and is classified in Income from discontinued operations in the Consolidated Statements of Operations. The purchase agreement also provides for additional proceeds of up to $2.5 million based on the results of operations of the sold business in 2019 and 2020, none of which has been recognized.

The associated results of operations are separately reported as Discontinued Operations for all periods presented on the Consolidated Statements of Operations. Cash flows from this discontinued business are shown below. As such, the results from continuing operations for the Company and segment highlights for Production Enhancement, exclude these discontinued operations.

Selected data for this discontinued business consisted of the following (in thousands):

	Three Months Ended
		March 31, 2019
Service revenue		$	699
Product sales			1,768
Total revenue			2,467
Cost of services, exclusive of depreciation expense shown below			345
Cost of product sales, exclusive of depreciation expense shown below			1,642
Other expense			(26	)
Operating income (loss)			506
Income tax expense (benefit)			247
Income (loss) from discontinued operations, net of income taxes		$	259

There are no balances recorded for the discontinued operations as of March 31, 2020 and December 31, 2019.

Net cash provided by (used in) operating activities of discontinued operations for the three months ended March 31, 2020 and 2019 was $0.0 million and $0.7 million, respectively.