Annual report pursuant to Section 13 and 15(d)

Discontinuing Operations (Tables)

v3.21.1
Discontinuing Operations (Tables)
12 Months Ended
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Summarized results of consolidated discontinued operations
The following is a reconciliation of the original gross sales price to the consideration received (in thousands):
Original sales price:
Gross sales price $ 23,500 
Adjustments to sales price:
Transaction costs (1,525)
Working capital adjustments (2,705)
Payment of other expenses (171)
Total adjustments to sales price (4,401)
Consideration received $ 19,099 

The BioPharma Disposal resulted in the following (in thousands):
Consideration received:
Cash received at closing $ 2,258 
Fair value of Excess Consideration Note 6,795 
Repayment of ABL and accrued interest 2,906 
Repayment of Term Note and accrued interest 6,250 
Repayment of certain accounts payable and accrued expenses 890 
Net sales price $ 19,099 
Net assets sold:
Accounts receivable $ 4,271 
Other current assets 1,142 
Fixed assets 2,998 
Operating lease right-of-use assets 1,969 
Patents and other intangible assets 42 
Goodwill 10,106 
Accounts payable and accrued expenses (4,970)
Obligations under operating leases (2,110)
Obligations under finance leases (451)
Deferred revenue (1,046)
$ 11,951 
Gain on disposal of BioPharma Business $ 7,148 
The Clinical Business disposal resulted in the following:
Consideration received:
Cash received at closing $ 747 
Fair value of Earn-Out from siParadigm 2,376 
Advance from siParadigm received in cash (1,000)
$ 2,123 
Net assets sold:
Goodwill $ 1,188 
Accounts payable and accrued expenses (287)
$ 901 
Gain on disposal of Clinical Business $ 1,222 
Summarized results of the Company's consolidated discontinuing operations are as follows for the years ended December 31, 2020 and 2019 (in thousands):
  Year Ended December 31,
  2020 2019
Revenue $   $ 10,066 
Cost of revenues   7,554 
Gross profit   2,512 
Operating expenses:
Research and development   937 
General and administrative (42) 4,675 
Sales and marketing   1,527 
Restructuring costs   194 
Transaction costs   560 
Impairment of patents and other intangible assets   601 
Total operating expenses (42) 8,494 
Income (loss) from discontinuing operations 42  (5,982)
Other income (expense):
Interest expense   (2,211)
Gain on disposal of Clinical Business   1,222 
Gain on disposal of BioPharma Business   7,148 
Total other income   6,159 
Net income from discontinuing operations $ 42  $ 177 

Consolidated carrying amounts of major classes of assets and liabilities from discontinuing operations were as follows as of December 31, 2020 and 2019 (in thousands):
2020 2019
Current assets of discontinuing operations:
Accounts receivable, net of allowance for doubtful accounts of $4,536 in 2019
$   $ 71 
Current assets of discontinuing operations $   $ 71 
Current liabilities of discontinuing operations
Accounts payable and accrued expenses $ 659  $ 1,137 
Due to Interpace Biosciences, Inc.   92 
Current liabilities of discontinuing operations $ 659  $ 1,229 
Cash flows used in discontinuing operations consisted of the following for the years ended December 31, 2020 and 2019:
  Years Ended December 31,
  2020 2019
Income from discontinuing operations $ 42  $ 177 
Adjustments to reconcile income from discontinuing operations to net cash used in operating activities, discontinuing operations
Depreciation   542 
Amortization   613 
Provision for bad debts (28) 1,074 
Accounts payable settlements (43) — 
Stock-based compensation (6) 107 
Amortization of operating lease right-of-use assets   358 
Amortization of discount of debt and debt issuance costs   601 
Interest added to Convertible Note   343 
Loss on extinguishment of debt   328 
Gain on disposal of Clinical business   (1,222)
Gain on disposal of BioPharma business   (7,148)
Change in working capital components:
Accounts receivable 99  845 
Other current assets   398 
Other non-current assets  
Accounts payable, accrued expenses and deferred revenue (435) (2,163)
Obligations under operating leases   (217)
Deferred rent payable and other   (151)
Due to Interpace Biosciences, Inc. (92) 92 
Net cash used in operating activities, discontinuing operations $ (463) $ (5,421)