Note C - Discontinued Operations

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

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

C. Discontinued Operations

On October 7, 2022, the Separation of MtronPTI was completed. In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the Company determined that MTronPTI’s business line met the conditions for a discontinued operation and is recorded as such in the consolidated financial statements. The Company reports financial results for discontinued operations separately from continuing operations in order to distinguish the financial impact of the disposal transaction from ongoing operations.

The following table summarizes the significant line items included in Income from Discontinued Operations, Net of Tax in the Consolidated Statements of Operations for three and nine months ended September 30, 2022 (in thousands):

	Three Months Ended		Nine Months Ended
	September 30, 2022		September 30, 2022
Revenues	$	8,417	$	23,172
Manufacturing cost of sales		5,688		14,919
Engineering, selling and administrative		2,080		5,932
Interest expense, net		1		6
Other expense, net		15		41
Income from discontinued operations before income taxes		633		2,274
Income tax provision		145		521
Income from discontinued operations, net of tax	$	488	$	1,753

The cash flows related to discontinued operations have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows for all periods presented. The following table summarizes depreciation and other significant operating noncash items, capital expenditures and financing activities of discontinued operations for each period presented (in thousands):

	Nine Months Ended
	September 30, 2022
Depreciation	$	486
Amortization of finite-lived intangible assets	$	40
Stock-based compensation expense	$	362
Capital expenditures	$	663