Discontinued Operations of Adeona Clinical Laboratory and Note Receivable

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations of Adeona Clinical Laboratory and Note Receivable

On March 8, 2012, the Company sold all of its interest in Adeona Clinical Laboratory, LLC (the “Lab”) to Hartlab, LLC, an entity controlled by the Lab’s former owner. In connection with the sale of the Lab, the consideration received was (i) the immediate assignment of the Lab’s outstanding accounts receivable up through the date of closing, plus (ii) $700,000 payable pursuant to the terms of a two-year promissory note bearing interest at 5.7% per annum secured by all of the assets of the Lab. The note and all unpaid interest are due on March 1, 2014.

In accordance with ASC Topic 205-20 “ Presentation of Financial Statements—Discontinued Operations ” (ASC 205-20), the Company determined that all the criteria had been met and classified the Lab as discontinued operations and its results of operations, financial position and cash flows are separately reported for all periods presented. The assets of the discontinued operations are presented separately under the caption “Assets of discontinued operations” in the accompanying Consolidated Balance Sheets at September 30, 2012, and December 31, 2011, and consist of the following (in thousands): 

	September 30, 2012		December 31, 2011
Assets of discontinued operations:
Property and equipment, net	$	—	$	23
Total assets	$	—	$	23

The summarized statement of operations data for Adeona Clinical Laboratory for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands): 

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Laboratory fees, net	$	—		$	293		$	115		$	972
Operating Costs and Expenses:
General and administrative		104			100			287			311
Cost of laboratory services		—			261			116			806
Total operating costs and expenses		104			361			403			1,117
Income (loss) from discontinued operations		(104	)		(68	)		(288	)		(145	)
Other Income:
Gain on sale of Adeona Clinical Laboratory		—			—			677			—
Net income (loss) from discontinued operations	$	(104	)	$	(68	)	$	389		$	(145	)