Discontinued Operations

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

14. Discontinued Operations

As described in Note 1, the Company entered into a Stock Purchase Agreement with Purchaser, pursuant to which the Company sold on April 11, 2022 all of the issued and outstanding shares of capital stock of its wholly-owned subsidiary, MTI Instruments for approximately $9.0 million in cash, net of transaction costs. As of June 30, 2022, our Instrumentation business segment was classified as discontinued operations in our financial statements for all periods presented. Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of equity and statements of cash flows combine continuing and discontinuing operations.

Set forth below are the results of the discontinued operations:

(Dollars in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021 (*)			2022		2021 (*)
Product revenue	$	160		$	1,647		$	1,799	$	2,984
Cost of sales		166			502			728		954
Research and development		30			406			398		792
General and administrative expenses		89			526			573		1,066
Other income		-			(4	)		-		(5	)
(Loss) income from discontinued operations before gain on disposal and income taxes		(125	)		217			100		177
Pretax gain on sale of MTI Instruments		7,602			-			7,602		-
Deferred tax benefit		70			-			70		-
Net income from discontinued operations	$	7,547		$	217		$	7,772	$	177

(*) Reclassified to conform with the current period presentation

The following table summarizes information about assets and liabilities from discontinued operations held for sale as of June 30, 2022 and December 31, 2021:

(Dollars in thousands)
	June 30,		December 31,
	2022		2021
Assets held for sale from discontinued operations:
Accounts receivable	$	-	$	1,189
Inventories		-		964
Prepaid expenses and other current assets		-		54
Property, plant and equipment, net		-		92
Deferred tax assets, net		-		101
Operating lease right-of-use assets		-		628
Total Assets held for sale from discontinued operations	$	-	$	3,028
Liabilities held for sale from discontinued operations:
Accounts payable	$	-	$	136
Accrued liabilities		-		479
Operating lease liability		-		628
Total Liabilities held for sale from discontinued operations	$	-	$	1,243