Discontinued Operations

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued OperationsOn January 20, 2021, Legacy Appgate completed the sale of 100% of the outstanding equity interests of its formerly wholly owned subsidiary, Brainspace Corporation (“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 condensed consolidated statements of operations for all periods presented.

The major items constituting net income attributable to discontinued operations for the three months ended March 31, 2021 are presented below (in thousands):

Revenue	$	2,220
Cost of revenue, exclusive of amortization shown below	142
Total cost of revenue	142
Gross profit	2,078
Operating expenses:
Sales and marketing	240
Research and development	290
Total operating expenses	530
Income from operations	1,548
Gain on the disposal of the discontinued operation	58,835
Income from discontinued operations	60,383
Income tax expense of discontinued operations	(517)
Net income from discontinued operations, net of tax	$	59,866