Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

2. Discontinued Operations

During the fourth quarter of 2013, the Company committed to sell its Rockwest Technology Group, Inc. d/b/a/ Multicard US (“Multicard US”) subsidiary to George Levy, Matt McDaniel and Hugo Garcia (the “Buyers”), the founders and former owners of the Multicard US business. The sale of the Multicard US subsidiary was completed on February 4, 2014 and was made pursuant to a Share Purchase Agreement dated January 21, 2014 between the Company and the Buyers whereby the Company agreed to sell 80.1% of its holdings in Multicard US, to the Buyers for cash consideration of $1.2 million. Based on the carrying value of the assets and the liabilities attributed to Multicard US on the date of sale, and the estimated costs and expenses incurred in connection with the sale, the Company recorded a gain of $0.4 million, net of income taxes of nil, in the consolidated statement of operations in the year ended December 31, 2014, which is included in income (loss) from discontinued operations, net of income taxes.

On June 30, 2014, the Company entered into an Asset Purchase Agreement with a former employee to sell certain non-core assets consisting of inventory, some prepaid items, certain fully depreciated office equipment and certain intellectual property (“Non-Core Assets”) relating to one of its subsidiaries for cash consideration of $0.1 million. The sale of these Non-Core Assets was completed on July 7, 2014.  

In accordance with ASC Topic 205-20, Discontinued Operations (“ASC 205”), the results of these businesses have been presented as discontinued operations in the consolidated statements of operations for the year ended December 31, 2014 and 2015.

The key components of income from discontinued operations consist of the following (in thousands):

	Years Ended December 31,
	2015		2014
Net revenue	$	—	$	1,276
Discontinued operations:
Income from discontinued operations before income taxes	$	—	$	62
Income tax provision		—		—
Income from discontinued operations,    net of income taxes		—		62
Gain on sale of discontinued operations, net    of income taxes of nil		—		459
Income from discontinued operations, net    of income taxes	$	—	$	521