Discontinued Operations

3 Months Ended

Mar. 31, 2020

3. Discontinued Operations

On June 25, 2019, the Company’s officers, pursuant to delegated authority from the board, approved plans to discontinue the operations of its UK subsidiary within the body worn device segment. Prior to March 31, 2020, the remaining assets and liabilities of the subsidiary were settled.

As the disposal meets the definition of a strategic shift in accordance with ASC 205, the results of the UK operations have been classified as loss from discontinued operations, in the accompanying consolidated condensed statements of operations, comprehensive (loss) income and cash flows. Current assets and liabilities of the discontinued operations have been reclassified and reflected on the accompanying consolidated condensed balance sheets as “Current assets of discontinued operations,” and “Liabilities of discontinued operations”, respectively. Prior periods relating to our discontinued operations have been reclassified to reflect consistency within our consolidated condensed financial statements. There was no income tax expense or benefit related to our discontinued operations for any period presented.

The total assets and liabilities of the UK subsidiary at December 31, 2019 were as follows:


		December 31,
		2019
Other current assets	$	80
Other accrued liabilities		77
Net assets (liabilities)	$	3

The following table shows the results of the UK subsidiary’s discontinued operations:



Three Months Ended		March 31, 2019
Revenue, net	$	539
Cost of goods sold		346
Gross profit		193
Sales and marketing		147
General and administrative		239
Total operating expenses		386
Loss from discontinued operations	$	(193)