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 as 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		Six Months Ended
	June 30, 2019
Service revenue	$	466	$	1,165
Product sales		2,465		4,233
Total revenue		2,931		5,398
Cost of services, exclusive of depreciation expense shown below		345		690
Cost of product sales, exclusive of depreciation expense shown below		1,554		3,196
Other expense		117		91
Operating income (loss)		915		1,421
Adjustment to gain on sale		8,804		8,804
Income (loss) from discontinued operations before income tax expense		9,719		10,225
Income tax expense (benefit)		1,748		1,995
Income (loss) from discontinued operations, net of income taxes	$	7,971	$	8,230

There are no activities recorded for the three and six months ended June 30, 2020 and no balances recorded for the discontinued operations as of June 30, 2020 and December 31, 2019.

Net cash provided by operating activities of discontinued operations for the six months ended June 30, 2020 and 2019 was $0.0 million and $0.7 million, respectively.