Note 5 - Discontinued Operations

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

5. Discontinued Operations

On

January 22, 2018,

the Company sold substantially all the assets of its wholly owned subsidiary, Denville, for approximately

$20.0

million, which included a

$3.0

million earn-out provision (the Denville Transaction). Upon the closing of the transaction, the Company received net cash proceeds of

$15.7

million. The earn-out provision represented contingent consideration of up to

$2.0

million based on Denville achieving certain performance metrics with respect to

2018

operating results and up to

$1.0

million based on Denville achieving certain performance metrics with respect to

2019

operating results. The Company has determined that the

2018

performance metrics were

not

achieved and expects that the

2019

performance metrics will

not

be achieved.

The following table is a reconciliation of the major line items of income from discontinued operations presented within the Company’s consolidated statements of operations for the years ended

December 31, 2018.

	Year Ended
	December 31,
	2018
	(in thousands)
Revenues	$	893
Cost of revenues		(534	)
Operating and other expenses		(674	)
Gain on disposal of discontinued operations		1,251
Income from discontinued operations before income taxes	$	936
Income tax benefit		(441	)
Income from discontinued operations		1,377

During the year ended

December 31, 2019,

the Company received a release of an escrow amount of

$1.0

million related to the Denville Transaction, which is included in the investing cash flows from disposition in the Company’s consolidated statements of cash flows for the year ended

December 31, 2019.

Total operating cash flows for Denville in the Company’s consolidated statements of cash flows for the year ended

December 31, 2018,

were immaterial.