DISPOSAL OF BUSINESS

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISPOSAL OF BUSINESS

DISPOSAL OF BUSINESS

On August 30, 2018, we closed on a definitive asset purchase agreement (the "Asset Purchase Agreement") with Specialty Surgical Instrumentation Inc., a Tennessee Corporation and wholly-owned subsidiary of Symmetry Surgical Inc. (“Symmetry”), pursuant to which the Company divested and sold the Company's electrosurgical "Core" business segment and related intellectual property, including the Bovie® brand and trademarks, to Symmetry for gross proceeds of $97 million in cash.

In connection with the Asset Purchase Agreement, we entered into an Electro Surgical Disposables and Accessories, Cauteries and Other Products Supply Agreement with Symmetry for a four-year term, whereby we will manufacture certain Core products and sell them to Symmetry at agreed upon prices. Any activity resulting from this agreement is netted and reported in our Condensed Consolidated Statements of Operations as other income or (loss). Core activity for the three months ended September 30, 2020 amounted to $1.8 million with cost of sales equivalents of $1.6 million and related other expenses of $0.3 million for net other (loss) of $0.1 million. Core activity for the three months ended September 30, 2019 amounted to $2.5 million with cost of sales equivalents of $2.2 million and related other expenses of $0.1 million for net other income of $0.2 million. Core activity for the nine months ended September 30, 2020 amounted to $6.9 million with cost of sales equivalents of $6.1 million and related other expenses of $0.5 million for net other income of $0.3 million. Core activity for the nine months ended September 30, 2019 amounted to $6.9 million with cost of sales equivalents of $6.6 million and related other expenses of $0.2 million for net other income of $0.1 million.