Discontinued Operations

3 Months Ended

Oct. 31, 2023

Discontinued Operations [Abstract]

Discontinued operations

Note 2 - Discontinued operations

Prior to July 24, 2023, we operated a clinical laboratory, doing business as Enzo Clinical Labs, which provided reference, molecular and esoteric diagnostic medical testing services in the New York, New Jersey, and Connecticut medical communities. Effective July 24, 2023, we completed the sale of certain assets used in the operation of Enzo Clinical Labs and the assignment of certain clinical lab liabilities to Labcorp for an aggregate purchase price of $113.25 million in cash, subject to customary closing adjustments. Excluded from the sale of the clinical services assets were its cash and accounts receivable. In accordance with the sale, we ceased our clinical services operations but continue winding down activities. As a consequence of the sale, for the three months ended October 31, 2023 and 2022 we have classified as discontinued operations all income and expenses attributable to the clinical services business.

The following table sets forth the condensed operating results of the discontinued operations for the three months ended October 31,

	2023			2022
Net revenues		—		$	11,173
Cost of revenues	$	(175	)		10,082
Selling, general and administrative		1,437			6,014
Research and development		—			297
Legal and related expenses		41			64
Other income		(362	)		(3	)
Loss from discontinued operations	$	(941	)	$	(5,281	)

The following table sets forth the condensed carrying amounts of major classes of assets and liabilities of the discontinued operations as of the dates indicated:

	October 31, 2023		July 31, 2023
Carrying amounts of major current assets included as part of discontinued operations:
Trade receivables	$	378	$	1,675
Prepaid and other current		41		54
Total current assets		419		1,729
Carrying amounts of major current liabilities included as part of discontinued operations:
Trade payables and accrued liabilities		11,214		20,616
Operating lease liabilities and other		2,206		2,215
Total current liabilities		13,420		22,831
Current liabilities of discontinued operations, net		13,001		21,102
Carrying amount of major non-current assets included as part of discontinued operations:
Right of use assets	$	6,564	$	7,001
Other		62		62
Total non-current assets		6,626		7,063
Carrying amount of major non-current liabilities included as part of discontinued operations:
Operating lease liabilities and other		5,536		6,096
Non-current assets of discontinued operations, net	$	1,090	$	967

During the three months ended October 31, 2023, the cash used in operating activities of the discontinued operations was $8,082, primarily for reductions of trade payables and accrued liabilities. During the three months ended October 31, 2022, the cash used in operating activities and investing activities of the discontinued operations was $5,623 and $156, respectively.