Note 10. Discontinued Operations

9 Months Ended

Mar. 31, 2014

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

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 three 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.

The following tables summarize the results of discontinued operations of BHH for the three-month and nine-month periods ended March 31, 2014 and 2013 (in thousands):




For the three months ended March 31,	2014			2013
Revenue, net	$	—		$	—
Cost of goods sold	—			—
Marketing, general and administrative	25			—
Research & development	—			—
Total Costs and expenses	25			—
Loss from discontinued operations	$	(25	)	$	—





For the nine months ended March 31,	2014			2013
Revenue, net	$	—		$	—
Cost of goods sold	—			—
Marketing, general and administrative	75			—
Research & development	—			—
Total Costs and expenses	75			—

Loss from discontinued operations	$	(75	)	$	—

Assets and liabilities of discontinued operations of BHH included in the condensed consolidated balance sheets are summarized as follows at March 31, 2014 and June 30, 2013 (in thousands):



	March 31,			June 30,
	2014			2013
Total assets	$	—		$	—
Liabilities
Accrued lease termination costs	568			493
Total liabilities	568			493
Net liabilities of discontinued operations	$	(568	)	$	(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-month and nine-month periods ended March 31, 2014 and 2013 (in thousands):




For the three months ended March 31,	2014			2013
Revenue, net	$	—		$	—
Cost of goods sold	—			—
Marketing, general and administrative	1			1
Research & development	—			—
Total costs and expenses	1			1
Other expense	—			—
Net (loss) from discontinued operations	(1		)	(1		)
Gain from sale of assets and debt settlement net of tax (CTA included)	—			(1		)
Net (loss) income from discontinued operations, net of tax	$	(1	)	$	(2	)



For the nine months ended March 31,	2014			2013
Revenue, net	$	—		$	3,637
Cost of goods sold				2,194
Marketing, general and administrative	3			1,249
Research & development	—			76
Total costs and expenses	3			3,519
Net (loss) income from discontinued operations	(3		)	118
Gain from sale of assets and debt settlement, net of tax (CTA included)	—			3,938
Net loss (income)	$	(3	)	$	4,056

Assets and liabilities of discontinued operations of ECD included in the condensed consolidated balance sheets are summarized as follows at March 31, 2014 and June 30, 2013 (in thousands):



	March 31,			June 30,
	2014			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

The following tables summarize the results of discontinued operations of BHH for the three-month and nine-month periods ended March 31, 2014 and 2013 (in thousands):




For the three months ended March 31,	2014			2013
Revenue, net	$	—		$	—
Cost of goods sold	—			—
Marketing, general and administrative	25			—
Research & development	—			—
Total Costs and expenses	25			—
Loss from discontinued operations	$	(25	)	$	—





For the nine months ended March 31,	2014			2013
Revenue, net	$	—		$	—
Cost of goods sold	—			—
Marketing, general and administrative	75			—
Research & development	—			—
Total Costs and expenses	75			—

Loss from discontinued operations	$	(75	)	$	—

Assets and liabilities of discontinued operations of BHH included in the condensed consolidated balance sheets are summarized as follows at March 31, 2014 and June 30, 2013 (in thousands):



	March 31,			June 30,
	2014			2013
Total assets	$	—		$	—
Liabilities
Accrued lease termination costs	568			493
Total liabilities	568			493
Net liabilities of discontinued operations	$	(568	)	$	(493	)

ECD [Member]

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

Schedule of Discontinued Operations



	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

The following tables summarize the results of discontinued operations for the three-month and nine-month periods ended March 31, 2014 and 2013 (in thousands):




For the three months ended March 31,	2014			2013
Revenue, net	$	—		$	—
Cost of goods sold	—			—
Marketing, general and administrative	1			1
Research & development	—			—
Total costs and expenses	1			1
Other expense	—			—
Net (loss) from discontinued operations	(1		)	(1		)
Gain from sale of assets and debt settlement net of tax (CTA included)	—			(1		)
Net (loss) income from discontinued operations, net of tax	$	(1	)	$	(2	)



For the nine months ended March 31,	2014			2013
Revenue, net	$	—		$	3,637
Cost of goods sold				2,194
Marketing, general and administrative	3			1,249
Research & development	—			76
Total costs and expenses	3			3,519
Net (loss) income from discontinued operations	(3		)	118
Gain from sale of assets and debt settlement, net of tax (CTA included)	—			3,938
Net loss (income)	$	(3	)	$	4,056

Assets and liabilities of discontinued operations of ECD included in the condensed consolidated balance sheets are summarized as follows at March 31, 2014 and June 30, 2013 (in thousands):



	March 31,			June 30,
	2014			2013
Total Assets	$	—		$	—
Liabilities
Accrued expenses	55			80
Total liabilities	55			80
Net liabilities of discontinued operations	$	(55	)	$	(80	)

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

+ Details

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References+ Details