Discontinued Operations

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 2 

Discontinued Operations: 

On January 23, 2017, the Company sold its last significant business unit (its consumer products division) to ICTV Brands, Inc. This business was a substantial business unit of the Company and the sale brought a strategic shift in focus of management. The Company accordingly classified this former business as held for sale and discontinued operations in accordance with ASC 360 “Impairment or disposal of long-lived assets” during the fourth quarter of the year ended December 31, 2016. 

The accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2017 have been retrospectively adjusted to reflect the operating results of the consumer business as discontinued operations separately from continuing operations. The Company recognized a net loss from discontinued operations of $2,235, including the loss on the sale of the discontinued operations in the nine months ended September 30, 2017, which represents the difference between the adjusted net purchase price and the carrying value of the disposal group. 

The Company recognized a gain of $286 related to the discontinued operations during the nine months ended September 30, 2018, as a result of the sale of residual inventory to third parties.  

The following is a summary of income (loss) from discontinued operations for the three and nine months ended September 30, 2018 and 2017: 

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2018		2017			2018		2017
Revenues:	$	—	$	—		$	—	$	3,539
Cost of revenues		—		—			—		100
Gross profit		—		—			—		3,439
Operating expenses:
Engineering and product development		—		—			—		143
Selling and marketing		—		—			—		620
General and administrative		—		—			—		2,342
Other expense (income), net		—		183					(2,467	)
Loss on disposal of assets		—		594			—		4,845
Loss from discontinued operations before interest and other financing expense, net		—		(777	)		—		(5,483	)
Interest and other financing expense, net		—		—			—		(77	)
Loss from discontinued operations before income taxes		—		(777	)		—		(2,121	)
Income tax expenses allocated to discontinued operations		—		(20	)		—		(114	)
Loss from discontinued operations		—		(797	)		—		(2,235	)
Gain from disposal of discontinued operations, net of taxes		66		—			286		—
Net gain (loss) from discontinued operations	$	66	$	(797	)	$	286	$	(2,235	)