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. As of December 31, 2019, we continued to settle the remaining assets and liabilities of the subsidiary. During the first quarter of 2020, the remaining assets and liabilities of the subsidiary were settled.

At June 30, 2019, the net realizable value of certain assets was less than their carrying value resulting in a loss on disposal.

The Company considered the disposal a strategic shift in accordance with ASC 205 and the results of the UK operations have been classified as loss on discontinued operations, net of income taxes, in the accompanying Consolidated Statements of Operations, Comprehensive Income (Loss) and Cash Flows. Current assets, noncurrent assets, and liabilities of the discontinued operations have been reclassified and reflected on the accompanying Consolidated Balance Sheets as “Current assets of discontinued operations,” “Noncurrent assets of discontinued operations,” and “Liabilities of discontinued operations”, respectively. Prior periods relating to our discontinued operations have also been reclassified to reflect consistency within our consolidated financial statements.

During the year ended December 31, 2019, we derecognized approximately $761 of non-cash operating lease ROU assets and lease liabilities from our discontinued operations.

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

The loss on disposal of discontinued operations, as a result of the plan to discontinue the operations of the UK, for the year ended December 31, 2019 was computed as follows:



Accounts receivable, net	$	77
Write-down of inventory to realizable value		278
Write-down of property, plant and equipment to salvage value		298
Other assets and liabilities, net		71
Realized loss on foreign currency		280
Net assets disposed		1,004
Additional disposal costs, net		112
Loss on disposal of discontinued operations	$	1,116

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



	Year Ended December 31,
		2019		2018
Revenue, net	$	1,068	$	2,514
Cost of goods sold		667		1,582
Gross profit		401		932
Sales and marketing		314		902
General and administrative		684		1,291
Total operating expenses		998		2,193
Other income, net		-		46
Loss from discontinued operations, net of taxes	$	(597)	$	(1,215)