Discontinued Operations

12 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

BH Holdings, S.A.S

On January 12, 2012 BHH initiated the filing of an insolvency declaration with the Tribunal de Commerce de Rennes, France ("Commercial Court").  The Commercial Court on January 18, 2012 opened the liquidation proceedings with continuation of BHH's activity for 3 months and named an administrator to manage BHH. Since Drew no longer had a controlling financial interest in BHH it was deconsolidated in the December 31, 2011 quarterly consolidated financial statements and prior period amounts are presented as discontinued operations.

The following table summarizes the results of discontinued operations of BHH for the years ended June 30, 2013 and 2012 (in thousands):

For the years ended June 30,	2013			2012
Revenue, net	$	—		$	1,970
Cost of goods	—			574
Marketing, general and administrative	187			1,945
Research & development	—			—
Total costs and expenses	187			2,519
Loss from discontinued operations	(187		)	(549		)
Other income and expenses:
Loss on liquidation of net assets from discontinued operations	—			(2,738		)
Loss before income taxes	(187		)	(3,287		)
Income tax	—			—
Net loss	$	(187	)	$	(3,287	)

Net loss of approximately $187,000 for the year ended June 30, 2013 is related to a continuing lease obligation of $155,000 and legal fees of $32,000.

Assets and liabilities of discontinued operations of BHH included in the consolidated balance sheets are summarized as follows at June 30, 2013 and 2012 (in thousands):

	June 30,			June 30,
	2013			2012
Assets
Cash	$	—		$	—
Accounts receivable	—			—
Inventory	—			—
Other current assets	—			—
Fixed assets	—			—
Covenant not to compete and customer list, net	—			—
Other assets	—			—
Total assets	—			—
Liabilities
Accounts payable	—			—
Accrued expenses	—			—
Accrued lease termination costs	493			338
Total liabilities	493			338
Net assets of discontinued operations	$	(493	)	$	(338	)

Discontinued operation of ECD

On October 3, 2012 the Company sold its Clinical Diagnostics Business to ERBA Diagnostics, Inc. The ECD consisted of Drew Scientific, Inc., and its wholly owned subsidiaries JAS and Drew Scientific Limited Co. The sales price was $6,500,000 in cash and gain on sale of assets was approximately $2,717,000. The following table summarizes the gain on sales(in thousands):

	October 3, 2012
Sales Price	$	6,500
Broker's fee	(325		)
Net Proceeds	6,175
Net Assets Sold	(3,458		)
Gain on Sale of Assets	$	2,717
Net assets sold
Assets:
Cash and cash equivalents	$	4
Accounts receivable, net	1,661
Inventory, net	1,997
Other current assets	113
Furniture and equipment, net	287
Goodwill	93
Trademarks and trade names, net	89
Customer list, net	462
Total Assets	4,706
Liabilities:
Accounts payable	639
Accrued expenses	609
Total liabilities	1,248
Net assets sold	$	3,458

On October 18, 2012, the Company and its debt holder reached an agreement whereby the Company paid the balance of the seller-provided financing plus accrued interest related to the purchase of certain assets of Biocode of $4,367,604 with a one-time payment of $2,487,480 resulting in a gain on extinguishment of debt of $1,880,124. The repayment of the debt has reduced the Company's debt related to Biocode to zero.

The following tables summarize the results of discontinued operations for the years ended June, 2013 and 2012 (in thousands):

For the years ended June 30,	2013			2012
Revenue, net	$	3,825		$	12,985
Cost of goods sold	2,383			9,416
Marketing, general and administrative	1,256			4,008
Research & development	75			476
Total costs and expenses	3,715			13,900
Other expense	—			(92		)
Net income (loss) from discontinued operations	110			(1,007		)
Gain from sale of assets and debt settlement net of tax (CTA included)	4,014			—
Net income (loss) from discontinued operations before tax	4,124			(1,007		)
Income tax	(80		)	—
Net income (loss) from discontinued operations, net of tax	$	4,044		$	(1,007	)

The total gain from the extinguishment of debt of $1,880,124, the gain on the sale of assets of ECD of $2,712,163, and net income from discontinued operations related to ECD of $110,383 offset by the cumulative translation adjustment ("CTA") related to Drew of $578,422, and the net loss from discontinued operations related to BHH of $186,750 was before tax.

Assets and liabilities of discontinued operations of ECD included in the consolidated balance sheets are summarized as follows as of June 30, 2013 and 2012 (in thousands):

	June 30,			June 30,
	2013			2012
Assets
Accounts receivable	$	—		$	1,555
Inventory	—			2,348
Other assets	—			110
Total current assets	—			4,013
Furniture and fixture	—			323
Non-current accounts receivable	—			69
Goodwill	—			93
Intangible assets	—			627
	—			1,112
Total non-current assets	—			1,112
Total Assets	—			5,125
Liabilities
Accounts payable	—			691
Accrued expenses and taxes	80			589
Total liabilities	80			1,280
Net assets of discontinued operations	$	(80	)	$	3,845