Discontinued Operations-Held for Sale

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations-Held for Sale

16. Discontinued Operations-Held for Sale

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 December 31, 2022, our Instrumentation business segment was classified as discontinued operations in our financial statements for all periods presented. The Company incurred approximately a $7.5 million pretax gain on sale of MTI Instruments for the year ended December 31, 2022. The Company’s consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. The Company’s consolidated statements of equity and statements of cash flows combine continuing and discontinued operations.

Set forth below are the results of the discontinued operations:

(Dollars in thousands)	2022		2021
Product revenue	$	1,799	$	7,147
Cost of sales		728		2,358
Research and development		398		1,525
Selling, general, and administrative		573		2,198
Other income, net		-		21
Income from discontinued operations before the gain on disposal and income taxes		100		1,087
Pretax gain on sale of MTI Instruments		7,751		-
Income tax benefit		70		40
Net income from discontinued operations	$	7,921	$	1,127

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

(Dollars in thousands)

	December 31,		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