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Discontinued Operations
 9 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS
    Overview
In March 2019, we completed the Commercial Product Portfolio Transaction. In accordance with applicable GAAP (ASC 205-20, Presentation of Financial Statements), the revenue-deriving activities and allocable expenses of our sold commercial operation, connected to the Commercial Product Portfolio, are separately classified as “discontinued” for all periods presented within the accompanying Condensed Consolidated Statements of Operations.
Condensed Consolidated Statements of Operations
The following table presents the various elements of “income from discontinued operations, net of income taxes” as reported in the accompanying Condensed Consolidated Statements of Operations:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Revenues:
        Product sales, net$(1)$5,968 $(101)$18,802 
        License fees and service revenue — — — 290 
             Total revenues (1)5,968 (101)19,092 
Operating costs and expenses:
Cost of sales (excluding amortization of intangible assets)— 5,115 (229)8,716 
Selling, general and administrative— 69 (1)5,959 
Research and development(67)(194)(126)2,597 
Amortization of intangible assets— — — 1,248 
Restructuring charges - employee severance — — — 3,858 
Total operating costs and expenses(67)4,990 (356)22,378 
Income (loss) from discontinued operations66 978 255 (3,286)
Other (expense) income:
Change in fair value of contingent consideration— — — (1,478)
Gain on sale of Commercial Product Portfolio— (193)— 33,451 
Total other (expense) income— (193)— 31,973 
Income from discontinued operations before income taxes66 785 255 28,687 
Provision for income taxes from discontinued operations— (213)— (7,140)
Income from discontinued operations, net of income taxes$66 $572 $255 $21,547 
Product sales, net for the three and nine months ended September 30, 2019 includes sales from our Commercial Product Portfolio in January and February 2019 (prior to the completion of the Commercial Product Portfolio Transaction) and EVOMELA sales related to a retained manufacturing contract (see Note 7).
The pre-tax gain on sale represents the $158.8 million gross proceeds from the Commercial Product Portfolio Transaction less our $121.2 book value of transferred net assets (inclusive of assumed liabilities) to Acrotech on the March 1, 2019 closing date less legal and banker fees aggregating $3.9 million. In the third quarter of 2019, we reduced the gain for a $0.2 million contract cancellation fee associated with our sold commercial operations; this value was deducted from the $4.0 million escrow account (reported as “restricted cash” on the Condensed Consolidated Balance Sheet until its release in November 2019). In the fourth quarter of 2019, we increased this gain by $1.1 million to correct for certain inventory that did not contractually transfer to the buyer.
Condensed Consolidated Balance Sheets
Accounts receivable derived from our product sales on and prior to February 28, 2019 were not transferred to Acrotech as part of Commercial Product Portfolio Transaction, nor were our GTN liabilities and trade accounts payable assumed by Acrotech that were associated with our commercial activities on and prior to February 28, 2019. Accordingly, these specific assets and liabilities remain presented within “accounts receivable, net of allowance for credit losses” and “accounts payable and other accrued liabilities” on the accompanying Condensed Consolidated Balance Sheets.
Condensed Consolidated Statement of Cash Flows
The following table presents significant non-cash items for our discontinued operations that are included as adjustments in the accompanying Condensed Consolidated Statements of Cash Flows:
Nine Months Ended
September 30,
20202019
Depreciation and amortization$— $1,263 
Stock-based compensation$— $3,404 
Change in fair value of contingent consideration$— $1,478