Note 10. Discontinued Operations

3 Months Ended

Sep. 30, 2013

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued Operations

10. 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 condensed consolidated financial statements and prior period amounts were presented as discontinued operations.

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

	September 30			June 30,
	2013			2013
Total assets	$	—		$	—
Liabilities
Accrued lease termination costs	518			493
Total liabilities	518			493
Net liabilities of discontinued operations	$	(518	)	$	(493	)

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 is 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 three months ended September 30, 2013 and 2012 (in thousands):

For the three-month period ended September 30,	2013			2012
Revenue, net	$	—		$	3,637
Cost of goods sold	—			2,194
Marketing, general and administrative	26			1,176
Research & development	—			76
Total costs and expenses	26			3,446
Net (loss) income from discontinued operations	$	(26	)	$	191

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

	September 30,			June 30,
	2013			2013
Total Assets	$	—		$	—
Liabilities
Accrued expenses	55			80
Total liabilities	55			80
Net liabilities of discontinued operations	$	(55	)	$	(80	)

BH Holdings, S.A.S [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of 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 condensed consolidated financial statements and prior period amounts were presented as discontinued operations.

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

	September 30			June 30,
	2013			2013
Total assets	$	—		$	—
Liabilities
Accrued lease termination costs	518			493
Total liabilities	518			493
Net liabilities of discontinued operations	$	(518	)	$	(493	)

ECD [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Discontinued Operations

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 is 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 three months ended September 30, 2013 and 2012 (in thousands):

For the three-month period ended September 30,	2013			2012
Revenue, net	$	—		$	3,637
Cost of goods sold	—			2,194
Marketing, general and administrative	26			1,176
Research & development	—			76
Total costs and expenses	26			3,446
Net (loss) income from discontinued operations	$	(26	)	$	191

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

	September 30,			June 30,
	2013			2013
Total Assets	$	—		$	—
Liabilities
Accrued expenses	55			80
Total liabilities	55			80
Net liabilities of discontinued operations	$	(55	)	$	(80	)