Discontinued Operations

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

14. Discontinued Operations

As described in Note 1, the Company entered into a Stock Purchase Agreement with Purchaser, pursuant to which the Company sold on April 11, 2022 all of the issued and outstanding shares of capital stock of its wholly-owned subsidiary, MTI Instruments for approximately $9.0 million in cash, net of transaction costs. As of September 30, 2022, our Instrumentation business segment was classified as discontinued operations in our financial statements for all periods presented. The Company incurred a $21 thousand loss on the sale of MTI Instruments for the three months ended September 30, 2022 due to a net working capital adjustment. Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of equity and statements of cash flows combine continuing and discontinuing operations.

Set forth below are the results of the discontinued operations:

(Dollars in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
	2022			2021 (*)		2022		2021 (*)
Product revenue	$	-		$	1,949	$	1,799	$	4,933
Cost of sales		-			661		728		1,616
Research and development		-			404		398		1,196
General and administrative expenses		-			576		573		1,642
Other income		-			15		-		21
(Loss) income from discontinued operations before gain on disposal and income taxes		-			323		100		500
Pretax (loss) gain on sale of MTI Instruments		(21	)		-		7,581		-
Deferred tax benefit		-			-		70		-
Net income from discontinued operations	$	(21	)	$	323	$	7,751	$	500

(*) Reclassified to conform with the current period presentation

The following table summarizes information about assets and liabilities from discontinued operations held for sale as of September 30, 2022 and December 31, 2021:

(Dollars in thousands)

	September 30,		December 31,
	2022		2021
Assets held for sale from discontinued operations:
Accounts receivable	$	-	$	1,189
Inventories		-		964
Prepaid expenses and other current assets		-		54
Property, plant and equipment, net		-		92
Deferred tax assets, net		-		101
Operating lease right-of-use assets		-		628
Total Assets held for sale from discontinued operations	$	-	$	3,028
Liabilities held for sale from discontinued operations:
Accounts payable	$	-	$	136
Accrued liabilities		-		479
Operating lease liability		-		628
Total Liabilities held for sale from discontinued operations	$	-	$	1,243