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Discontinued Operations
 12 Months Ended
Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued OperationsAs stated in Note 1, on January 20, 2021, Legacy Appgate completed the sale of 100% of the outstanding equity interests of its formerly wholly owned subsidiary, Brainspace, for $125.0 million. We recorded a gain on the sale of Brainspace of $58.8 million. We have classified the results of Brainspace as discontinued operations in our consolidated statements of operations for all periods presented. Additionally, the related assets and liabilities associated with the discontinued operations in the prior year consolidated balance sheet are classified as discontinued operations.
The major classes of assets and liabilities attributable to discontinued operations as of December 31, 2020 are presented below (in thousands):
ASSETS
Current assets:
Cash$27 
Accounts receivable, net of allowance of $97
5,202 
Contract assets208 
Deferred contract acquisition costs, current979 
Total current assets6,416 
Contract assets, noncurrent8,419 
Deferred contract acquisition costs, noncurrent2,315 
Goodwill33,696 
Intangible assets, net15,758 
Total assets$66,604 
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable$128 
Accrued expenses4,993 
Deferred revenue1,247 
Total current liabilities6,368 
Other liabilities180 
Total liabilities6,548 
Net assets$60,056 
Total assets and total liabilities as of December 31, 2020 were classified as current assets and liabilities of discontinued operations in the December 31, 2020 consolidated balance sheet.
The major items constituting net income attributable to discontinued operations for 2021 and 2020 are presented below (in thousands):
20212020
Revenue$2,220 $17,933 
Cost of revenue, exclusive of amortization shown below142 2,492 
Amortization expense— 2,296 
Total cost of revenue142 4,788 
Gross profit2,078 13,145 
Operating expenses:
Sales and marketing240 3,397 
Research and development290 4,285 
General and administrative— 2,811 
Depreciation and amortization (1)
— 1,094 
Total operating expenses530 11,587 
Income from operations1,548 1,558 
Gain on the disposal of the discontinued operation58,835 — 
Other expense, net— (422)
Income from discontinued operations60,383 1,136 
Income tax expense of discontinued operations(346)— 
Net income of discontinued operations, net of tax$60,037 $1,136 
(1)Comprises depreciation and amortization expense of direct Brainspace intangibles.