Note 2 - Discontinued Operations

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 2 – DISCONTINUED OPERATIONS

On July 25, 2024, the Company’s Board of Directors approved a plan to implement a strategic cost savings initiative, primarily related to the Company’s Birmingham laboratory. In August 2024, the Company explored options for the leased Birmingham laboratory and office space, including potential sublease arrangements.

In September, the Company transferred certain pieces of computer hardware with alternative use to the Pittsburgh laboratory, while the rest of the laboratory equipment and inventories from the Birmingham laboratory were marketed for sale and the related product and service lines were discontinued. The Company executed a sales agreement for all remaining laboratory equipment and inventories from the Birmingham laboratory and all items were removed from the laboratory premises as of September 30, 2024. As of September 30, 2024, the Company vacated and ceased use of the Birmingham laboratory and office space. The Company’s lease continues through August 2025.

The Company concluded that, in aggregate, the disposal of these assets comprising the former Birmingham operating segment met the criteria for discontinued operations presentation in the third quarter of 2024. As a result, the former Birmingham operating segment has been reclassified to discontinued operations in these condensed consolidated financial statements for all periods presented.

The following table presents a reconciliation of the carrying amounts of the major classes of assets and liabilities to the current assets and liabilities of discontinued operations as presented in the Company’s condensed consolidated balance sheets:

	September 30, 2024		December 31, 2023
Assets:
Accounts receivable		58,759		56,056
Inventories		-		13,571
Prepaid expense and other assets		18,967		9,622
Total current assets of discontinued operations		77,726		79,249
Property and equipment, net		-		742,696
Intangibles, net		-		11,118
Lease right-of-use assets		-		130,264
Other long-term assets		-		18,587
Total assets of discontinued operations	$	77,726	$	981,914
Liabilities:
Accounts payable	$	12,556	$	7,964
Accrued expenses and other liabilities		116,118		94,345
Lease liability		78,970		72,530
Total current liabilities of discontinued operations		207,644		174,839
Lease liability – net of current portion		-		58,002
Total liabilities	$	207,644	$	232,841

The following table provides details about the major classes of line items constituting the loss from discontinued operations presented in the Company’s condensed consolidated statements of net loss:                        

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenue	$	968		$	38,430		$	32,790		$	136,959
Cost of sales		1,503			9,072			3,295			19,379
Gross profit (loss) from discontinued operations		(535	)		29,358			29,495			117,580
Operating expenses:
General and administrative expense		291,944			238,953			804,098			800,760
Operations expense		55,671			203,883			495,741			614,165
Sales and marketing expense		-			1,605			1,980			22,972
Loss on impairment of property and equipment		-			-			-			162,905
Total operating expenses		347,615			444,441			1,301,819			1,600,802
Total operating (loss) from discontinued operations		(348,150	)		(415,083	)		(1,272,324	)		(1,483,222	)
Loss on disposal of discontinued operations		(463,127	)		-			(463,127	)		-
Net (loss) from discontinued operations	$	(811,277	)	$	(415,083	)	$	(1,735,451	)	$	(1,483,222	)

The loss on disposal of discontinued operations represents the loss on impairment of assets sold, including laboratory equipment and inventories, and impairment of other non-current assets.