Discontinued Operations

6 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

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 three months and named an administrator to manage BHH. Since Drew no longer has a controlling financial interest in BHH it was deconsolidated in the December 31, 2011 financial statements and prior period amounts are presented as discontinued operations.

The Company incurred a loss of $2,216,000 related to the deconsolidation of BHH. The deconsolidation loss was calculated by measuring the difference between:

a. The aggregate of:

(1) The fair value of any consideration received, (there was no consideration received);

(2) The fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated; and

(3) The carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated (there was no noncontrolling interest in the former subsidiary).

b. The carrying amount of the former subsidiary's assets and liabilities.

The following table summarizes the results of discontinued operations of BHH for the three-month and six-month periods ended December 31, 2011 and 2010 (in thousands):

	For the Three Months Ended December 31,
	2011			2010
Total revenue, net	$	970		$	1,039
Costs and expenses:
Cost of goods sold		167			67
Research & Development		0			0
Marketing, General & Admin		1,050			997
Total costs and expenses		1,217			1,064
Loss from discontinued operations		(247	)		(25	)
Loss on liquidation of net assets from discontinued operations		(2,216	)		0
Loss before income taxes		(2,463	)		(25	)
Income taxes		0			0
Net loss from discontinued operations	$	(2,463	)	$	(25	)

	For the Six Months Ended December 31,
	2011			2010
Total revenue, net	$	1,970		$	2,397
Costs and expenses:
Cost of goods sold		574			341
Research & Development		0			0
Marketing, General & Admin		1,945			1,903
Total costs and expenses		2,519			2,244
Income (loss) from discontinued operations		(549	)		153
Loss on liquidation of net assets from discontinued operations		(2,216	)		0
Income before income taxes		(2,765	)		153
Income taxes		0			0
Net (loss) income from discontinued operations	$	(2,765	)	$	153

Assets and liabilities of discontinued operations included in the consolidated balance sheets are summarized as follows at December 31, 2011 and June 30, 2011, (in thousands):

	December 31, 2011		June 30, 2011
Assets
Cash	$	0	$	230
Accounts receivable		0		965
Inventory		0		1,076
Other Current Assets		0		70
Fixed assets		0		110
Patents and customer list, net		0		1,481
Other Assets		0		109
Total Assets		0		4,041
Liabilities
Accounts Payable		0		370
Accrued expenses		0		1,147
Other Current Liabilities		0		155
Total Liabilities		0		1,672
Net assets of discontinued operations	$	0	$	2,369

Discontinued operation of Vascular

In an effort to enhance stockholder value, improve working capital and enable the Company to focus on its core in-vitro diagnostics and ophthalmology manufacturing businesses, on April 30, 2010 the Company divested certain assets held by its Vascular Access subsidiaries to Vascular Solutions, Inc. The total sales price was $5,750,000, consisting of cash of $5,000,000 at closing and $750,000 payable in cash upon the successful completion of the transfer of the manufacturing to Vascular Solutions, Inc. plus a one-time earn-out payment in an amount equal to 25% of the net sales of the VascuView TAP products sold by Vascular Solutions, Inc. between July 1, 2010 and June 30, 2011. The manufacturing transfer was completed on August 31, 2010. During this four-month transition, the Company continued to manufacture product in its Wisconsin facility under a supply agreement concurrently entered into with Vascular Solutions, Inc. The supply agreement ended on August 30, 2010 and the Company has no significant continuing involvement in the operations of Vascular. Vascular Access generated approximately $565,000 in gross profit related to the supply agreement.

The following table summarizes the results of discontinued operations of Vascular for the three-month and six-month periods ended December 31, 2011 and 2010 (in thousands):

	For the Three Months Ended December 31,
	2011		2010
Total revenue, net	$	0	$	4
Costs and expenses:
Cost of goods sold		0		0
Research & Development		0		11
Marketing, General & Admin		0		126
Total costs and expenses		0		137
Loss from discontinued operations	$	0	($	133	)

	For the Six Months Ended December 31,
	2011		2010
Total revenue, net	$	0	$	638
Costs and expenses:
Cost of goods sold		0		283
Research & Development		0		29
Marketing, General & Admin		0		155
Total costs and expenses		0		467
Income from discontinued operations	$	0	$	171

There are no assets and liabilities of discontinued operations included in the consolidated balance sheets at December 31, 2011 and June 30, 2011 related to Vascular Access.