Discontinued Operations

12 Months Ended

Jun. 30, 2012

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 has 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 Company incurred a loss of $2,738,000 related to the deconsolidation of BHH. The desconsolidated 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 years ended June 30, 2012 and 2011 (in thousands):

For the years ended June 30,	2012			2011
Revenue, net	$	1,970		$	4,369
Cost of goods	574			623
Market, general and administrative	1,945			4,657
Research & development	—			—
Total Costs and expenses	2,519			5,280
Loss (income) from discontinued operations	(549		)	(911		)
Other income and expenses:
Loss on liquidation of net assets from discontinued operations	(2,738		)	—
Loss (income) before income taxes	(3,287		)	(911		)
Income tax	—			—
Net loss	$	(3,287	)	$	(911	)

Assets and liabilities of discontinued operations of BHH included in the consolidated balance sheets are summarized as follows at June 30, 2012 and 2011 (in thousands):

	June 30,			June 30,
	2012			2011
Assets
Cash	$	—		$	400
Accounts receivable	—			965
Inventory	—			1,238
Other current assets	—			171
Fixed assets	—			132
Covenant not to compete and customer list, net	—			1,481
Other assets	—			109
Total assets	—			4,496
Liabilities
Accounts payable	—			370
Accrued expenses	—			1,147
Accrued lease termination costs	338			155
Total liabilities	338			1,672
Net assets of discontinued operations	$	(338	)	$	2,824

Discontinued Operation of Vascular

In an effort to enhance stockholder value, improve working capital and enable us to focus on the Company’s core in-vitro diagnostics and ophthalmology manufacturing businesses, on April 30, 2010 the Company divested certain Vascular Access 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. Vascular Access generated approximately $565,000 in gross profit related to the supply agreement.

The following table summarizes the results of discontinued operations for the years ended June 30, 2012 and 2011 (in thousands):

For the years ended June 30,	2012		2011
Revenue, net	$	—	$	638
Cost of goods	—		283
Market, general and administrative	—		157
Research & development	—		29
Total Costs and expenses	—		469
Net income (loss) from discontinued operations	—		169
Gain on sale of assets	—		—
Net income	$	—	$	169

There are no assets and liabilities of discontinued operations included in the consolidated balance sheets at June 30, 2012 and June 30, 2011 related to Vascular Access.