Note 2 - Discontinued Operations

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

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

NOTE 2 – DISCONTINUED OPERATIONS

In July 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 September 2024, the Company transferred certain pieces of computer hardware with alternative use to the Pittsburgh laboratory, which conducts the Company’s oncology drug discovery business, 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 continued through August 2025. The Company concluded that, in aggregate, the disposal of the assets comprising the former Birmingham operating segment met the criteria for discontinued operations presentation in the third quarter of 2024.

On March 14, 2025, the Company entered into an asset purchase agreement (the “APA”) and closed the transactions contemplated therein with DeRoyal Industries, Inc., a Tennessee corporation (“DeRoyal”), to sell and assign to DeRoyal assets and liabilities exclusively related to the business of providing products for automated, direct-to-drain medical fluid disposal, including the Company’s STREAMWAY® product line (the “Eagan Business”). These assets were operated by the Company’s wholly owned subsidiary, Skyline Medical, and were previously reported in the Company’s Eagan operating segment. The purchased assets exclusively related to the Eagan Business included but were not limited to cash, certain accounts receivable, inventories, patents, fixed assets, and real property leased by the Company and exclusively used in connection with the Eagan Business. The total purchase price for the purchased assets was $625,000, plus the assumption of certain liabilities related to the Eagan Business including the lease for the office and warehouse space located at 2915 Commers Drive Suite 900 Eagan, MN 55121, certain accounts payable, and contract liabilities associated with the Eagan Business. The ongoing activities of the former Eagan operating segment are limited to wind down activities.

As a result of these developments, the former Birmingham and Eagan operating segments have 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, 2025		December 31, 2024
Assets:
Cash	$	-	$	122,851
Accounts receivable, net		-		746,266
Inventories		-		339,968
Prepaid expense and other assets		14,348		52,318
Total current assets of discontinued operations		14,348		1,261,403
Property and equipment, net		-		21,882
Intangibles, net		-		159,158
Lease right-of-use assets		-		17,266
Other long-term assets		-		4,031
Total assets of discontinued operations	$	14,348	$	1,463,740
Liabilities:
Accounts payable	$	6,183	$	97,780
Accrued expenses and other liabilities		303,863		248,086
Contract liabilities		-		80,909
Lease liability		-		106,609
Total current liabilities of discontinued operations		310,046		533,384
Other long-term liabilities		-		23,487
Total liabilities	$	310,046	$	556,871

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,
	2025			2024			2025			2024
Revenue	$	-		$	342,747		$	157,179		$	969,002
Cost of sales		-			187,246			122,800			491,338
Gross profit from discontinued operations		-			155,501			34,379			477,664
Operating expenses:
General and administrative		5,106			329,345			209,447			942,772
Operations, research and development		-			153,856			125,495			960,663
Sales and marketing		-			173,983			130,318			455,242
Total operating expenses		5,106			657,184			465,260			2,358,677
Total operating (loss) from discontinued operations		(5,106	)		(501,683	)		(430,881	)		(1,881,013	)
Gain/(loss) on disposal of discontinued operations		-			(463,127	)		172,451			(463,127	)
Other income		-			-			4,300			-
Net (loss) from discontinued operations	$	(5,106	)	$	(964,810	)	$	(254,130	)	$	(2,344,140	)

The gain on disposal of discontinued operations for the nine months ended September 30, 2025 represents the gain on assets sold and liabilities assumed by DeRoyal related to the former Eagan operating segment. The loss on disposal of discontinued operations for the three and nine months ended September 30, 2024 represents the loss on impairment of assets sold, including laboratory equipment and inventories, and impairment of other non-current assets related to the former Birmingham operating segment.