Discontinued Operations

12 Months Ended

Jun. 30, 2014

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, 2014 and 2013 (in thousands):

For the years ended June 30,	2014			2013
Revenue, net	$	—		$	—
Cost of goods	—			—
Marketing, general and administrative	99			187
Research & development	—			—
Total costs and expenses	99			187
Loss from discontinued operations	$	(99	)	$	(187	)

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, 2014 and 2013 (in thousands):

	June 30,			June 30,
	2014			2013
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	593			493
Total liabilities	593			493
Net assets of discontinued operations	$	(593	)	$	(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 $2,717,069. 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, 2014 and 2013 (in thousands):

For the years ended June 30,	2014			2013
Revenue, net	$	—		$	3,825
Cost of goods sold	—			2,384
Marketing, general and administrative	7			1,256
Research & development	—			75
Total costs and expenses	7			3,715
Other expense	—			—
Net (loss) income from discontinued operations	(7		)	110
Gain from sale of assets and debt settlement net of tax (CTA included)	—			4,014
Net income (loss) from discontinued operations before tax	(7		)	4,124
Income tax benefit (expense)	74			(80		)
Net income from discontinued operations, net of tax	$	67		$	4,044

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, 2014 and 2013 (in thousands):

	June 30,		June 30,
	2014		2013
Assets
Accounts receivable	$	—	$	—
Inventory	—		—
Other assets	—		—
Total current assets	—		—
Furniture and fixture	—		—
Non-current accounts receivable	—		—
Goodwill	—		—
Intangible assets	—		—
Total non-current assets	—		—
Total Assets	—		—
Liabilities
Accounts payable	—		—
Accrued expenses and taxes	—		80
Total liabilities	—		80
Net assets of discontinued operations	$	—	$	(80	)