Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Financial Results of Discontinued Operations

The following table presents the financial results of the discontinued operations (in thousands):

	Three Months Ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
Discontinued Dunkirk operations:
Selling, general, and administrative expenses	$	—		$	(2,425	)	$	(1,927	)	$	(3,808	)
Gain on sale of discontinued operations		—			—			14,464			—
(Loss) gain from discontinued Dunkirk operations		—			(2,425	)		12,537			(3,808	)
Discontinued China API operations:
Revenue	$	424		$	1,225		$	1,007		$	3,098
Cost of sales		(7,343	)		(546	)		(8,118	)		(1,910	)
Research and development expenses		(157	)		(481	)		(613	)		(1,807	)
Selling, general, and administrative expenses		(1,540	)		(1,165	)		(2,669	)		(2,703	)
Other income		280			24			832			46
Interest expense		(5	)		—			(13	)		—
Loss from discontinued China API operations	$	(8,341	)	$	(943	)	$	(9,574	)	$	(3,276	)
(Loss) gain from discontinued operations	$	(8,341	)	$	(3,368	)	$	2,963		$	(7,084	)

The Dunkirk operations selling, general, and administrative costs during the periods presented was comprised primarily of compensation and consultant expenses, as well as operating expenses needed to prepare the facility.

The gain on sale of the Dunkirk discontinued operation was the result of the $40.0 million cash proceeds from the sale, less the net book value of assets and liabilities transferred to the Dunkirk Buyer, including property and equipment of $27.1 million, accounts payable and accrued expenses of $1.3 million and current and long-term finance lease obligations of $0.2 million.

The revenue and cost of sales of the China API discontinued operation arose from the sales of API. Cost of sales of the China API discontinued operation includes a write-off of excess and obsolete inventory of $7.1 million for the three and six months ended June 30, 2022. Research and development costs of the China API discontinued operation represent development of API manufacturing methods and API product development for the Company's Orascovery platform. Other income of the China API discontinued operation includes the sale of pilot product which was previously developed at the facility and included within research and development expense.

The consolidated statements of cash flows include cash flows related to the discontinued operations due to the Company's centralized treasury and cash management processes. The following table presents additional cash flow information for the discontinued operations (in thousands):

	Six months ended June 30,
	2022			2021
Supplemental information for discontinued Dunkirk operations:
Depreciation expense	$	185		$	29
Cash paid for capital expenditures		(1,949	)		(7,185	)
Repayment of finance lease obligations		(7	)		(85	)
Supplemental information for discontinued China API operations:
Depreciation expense	$	30		$	348
Impairment of PPE		230			—
Write-off of inventory		7,120			—
Cash paid for capital expenditures		(327	)		(2,783	)
Proceeds from issuance of debt		—			783
Repayment of long-term debt		(785	)		(783	)

The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations (in thousands):

	June 30,		December 31,
	2022		2021
Discontinued Dunkirk operations:
Prepaid expenses and other current assets	$	—	$	1,280
Property and equipment, net		—		26,848
Discontinued China API operations:
Accounts receivable		362		351
Inventories		2,204		7,636
Prepaid expenses and other current assets		2,393		3,564
Property and equipment, net		21,120		22,797
Operating lease right-of-use assets, net		463		734
Total assets attributable to discontinued operations	$	26,542	$	63,210
Discontinued Dunkirk operations:
Accounts payable	$	—	$	3,763
Accrued expenses		—		1,198
Current portion of finance lease obligation		—		101
Long-term finance lease obligation		—		126
Discontinued China API operations:
Accounts payable	$	2,725	$	2,223
Accrued expenses		716		561
Current portion of operating lease liabilities		233		516
Current portion of long-term debt		—		785
Long-term debt and lease obligations		7,490		7,932
Total liabilities attributable to discontinued operations	$	11,164	$	17,205