Discontinued Operations

12 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 2

Discontinued Operations:

On January 23, 2017, the Company sold its then 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 in accordance with ASC 360 “Impairment or disposal of long-lived assets” during the fourth quarter of the year ended December 31, 2016. Such activity was also presented as discontinued operations in the 2017 consolidated financial statements.

The accompanying consolidated financial statements as of and for the year ended December 31, 2017 reflect the operating results and balance sheet items of the Consumer business as discontinued operations separately from continuing operations. The Company recognized a loss from discontinued operations of $2,459, including the loss on the sale of the discontinued operations in the year ended December 31, 2017, which represents the difference between the adjusted net purchase price and the carrying value of the disposal group.

The Company recognized a loss of $172 related to the discontinued operations during the year ended December 31, 2018, as a result of the sale of residual inventory to third parties for $302, which was reduced by accounts receivables deemed uncollectible and write offs of various tax prepayments and liabilities related to the former businesses.

The following is a summary of loss from discontinued operations for the years ended December 31, 2018 and 2017:

	For the Year Ended December 31,
	2018			2017
Revenues:	$	—		$	3,880
Cost of revenues		—			100
Gross profit		—			3,780
Operating expenses:
Engineering and product development		—			143
Selling and marketing		—			620
General and administrative		—			2,342
Other income, net		—			(1,504	)
Loss on sale of assets		—			4,652
Loss from discontinued operations before interest and other financing expense, net		—			(2,473	)
Interest and other financing expense, net		—			—
Loss from discontinued operations before income taxes		—			(2,473	)
Income tax expense allocated to discontinued operations		—			(14	)
Loss from discontinued operations		—			(2,459	)
Loss from disposal of discontinued operations, net of taxes		(172	)		—
Net loss from discontinued operations	$	(172	)	$	(2,459	)