Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 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):

	Year Ended December 31,
	2022			2021
Discontinued Dunkirk operations:
Selling, general, and administrative expenses	$	(1,922	)	$	(10,183	)
Gain on sale of discontinued operation		14,464			—
Income from government grant		—			2,459
Interest expense		(2	)		(32	)
(Loss) gain from discontinued Dunkirk operations	$	12,540		$	(7,756	)
Discontinued China API operations:
Revenue	$	1,916		$	5,060
Cost of sales		(8,212	)		(2,707	)
Research and development expenses		(1,324	)		(1,239	)
Selling, general, and administrative expenses		(7,074	)		(6,273	)
Gain on sale of discontinued operation		724			—
Impairments		(224	)		(23,823	)
Other income		3,118			102
Interest expense		(12	)		(53	)
Pre-tax loss from discontinued China API operations		(11,088	)		(28,933	)
Income tax expense		(1,194	)		—
Loss from discontinued China API operations	$	(12,282	)	$	(28,933	)
Discontinued 503B operations:
Revenue	$	23,315		$	19,753
Cost of sales		(22,929	)		(16,813	)
Research and development expenses		(1,249	)		(1,290	)
Selling, general, and administrative expenses		(3,354	)		(2,050	)
Impairments		(1,488	)		(4,585	)
Interest expense		(1	)		(8	)
Loss from discontinued 503B operations	$	(5,706	)	$	(4,993	)
Loss from discontinued operations	$	(5,448	)	$	(41,682	)

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 year ended December 31, 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 impairment expense recognized during 2021 was related to the impairment of goodwill and other intangible assets.

The revenue and cost of sales of the 503B operations arose from the sales of 503B products to hospitals and end users. Research and development costs represented the development of manufacturing methods and products for the 503B operations. The selling, general, and administrative costs during the years presented was comprised primarily of compensation expenses and operating expenses needed to operate the facility.

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):

	Year Ended December 31,
	2022			2021
Supplemental information for discontinued Dunkirk operations:
Depreciation expense	$	185		$	321
Gain on sale of discontinued operation		(14,464	)		—
Cash paid for capital expenditures		(1,949	)		(14,943	)
Repayment of finance lease obligations		(7	)		(77	)
Supplemental information for discontinued China API operations:
Depreciation and amortization expense	$	1,384		$	913
Impairments		224			23,823
Gain on sale of discontinued operation		(724	)		—
Write-off of inventory		7,120			—
Cash paid for capital expenditures		(107	)		(7,607	)
Proceeds from issuance of debt		—			783
Repayment of long-term debt		(785	)		(775	)
Non-cash settlement of debt transferred to China API buyer		(6,831	)		—
Supplemental information for discontinued 503B operations:
Depreciation expense	$	577		$	631
Impairments		1,488			4,585
Provision for credit losses		482			141
Cash paid for capital expenditures		(110	)		(316	)
Repayment of finance lease obligations		(16	)		(206	)

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

	December 31,
	2022		2021
Discontinued Dunkirk operations:
Prepaid expenses and other current assets	$	—	$	1,280
Property and equipment, net		—		26,841
Discontinued China API operations:
Accounts receivable, net of provision for credit losses of $0 and $110, respectively	$	—	$	351
Inventories		—		7,636
Prepaid expenses and other current assets		—		3,563
Property and equipment, net		—		22,797
Operating lease right-of-use assets, net		—		575
Discontinued 503B operations:
Accounts receivable, net of provision for credit losses of $137 and $127, respectively	$	4,775	$	3,507
Inventories		2,366		3,981
Property and equipment, net		167		1,997
Total assets attributable to discontinued operations	$	7,308	$	72,528
Discontinued Dunkirk operations:
Accounts payable	$	—	$	3,763
Accrued expenses		—		1,198
Current portion of finance lease obligation		—		101
Long-term finance lease obligation		—		125
Discontinued China API operations:
Accounts payable	$	—	$	2,224
Accrued expenses		—		568
Current portion of operating lease liabilities		—		431
Current portion of long-term debt		—		784
Long-term debt and lease obligations		—		7,849
Discontinued 503B operations:
Accounts payable	$	5,074	$	2,033
Accrued expenses		644		208
Current portion of finance lease obligation		—		21
Total liabilities attributable to discontinued operations	$	5,718	$	19,305