| Summarized results of consolidated discontinued operations |
Summarized results of our unaudited condensed consolidated discontinuing operations are as follows for the three and six months ended June 30, 2019 and 2018 (in thousands):
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue |
$ |
4,621 |
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|
$ |
5,755 |
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|
$ |
9,638 |
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|
$ |
11,995 |
|
Cost of revenues |
3,438 |
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|
3,978 |
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|
7,081 |
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|
8,302 |
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Gross profit |
1,183 |
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|
1,777 |
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|
2,557 |
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|
3,693 |
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Operating expenses: |
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Research and development |
429 |
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|
657 |
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|
875 |
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|
1,323 |
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General and administrative |
1,937 |
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|
3,955 |
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|
3,339 |
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|
7,295 |
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Sales and marketing |
585 |
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|
955 |
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|
1,501 |
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|
2,320 |
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Transaction costs |
402 |
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— |
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|
651 |
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|
— |
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Total operating expenses |
3,353 |
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|
5,567 |
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|
6,366 |
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|
10,938 |
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Loss from discontinuing operations |
(2,170 |
) |
|
(3,790 |
) |
|
(3,809 |
) |
|
(7,245 |
) |
Other expense: |
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Interest expense |
(1,063 |
) |
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(576 |
) |
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(2,173 |
) |
|
(812 |
) |
Total other expense |
(1,063 |
) |
|
(576 |
) |
|
(2,173 |
) |
|
(812 |
) |
Net loss from discontinuing operations |
$ |
(3,233 |
) |
|
$ |
(4,366 |
) |
|
$ |
(5,982 |
) |
|
$ |
(8,057 |
) |
Unaudited condensed consolidated carrying amounts of major classes of assets and liabilities from discontinued operations were as follows as of June 30, 2019 and December 31, 2018 (in thousands):
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June 30, 2019 |
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December 31, 2018 |
Current assets of discontinued operations: |
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Accounts receivable, net of allowance for doubtful accounts of $3,487 in 2019; $3,462 in 2018 |
$ |
6,150 |
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$ |
6,261 |
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Other current assets |
1,422 |
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|
1,652 |
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Fixed assets, net of accumulated depreciation |
3,090 |
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|
3,559 |
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Operating lease right-of-use assets |
2,060 |
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— |
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Patents and other intangible assets, net of accumulated amortization |
644 |
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|
655 |
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Goodwill |
11,294 |
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|
11,294 |
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Current assets of discontinued operations |
$ |
24,660 |
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$ |
23,421 |
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Current liabilities of discontinued operations |
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Accounts payable and accrued expenses |
$ |
10,154 |
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$ |
9,967 |
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Operating lease liabilities |
2,109 |
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— |
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Obligations under finance leases |
502 |
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|
666 |
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Deferred revenue |
1,053 |
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|
1,337 |
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Line of credit |
2,847 |
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|
2,621 |
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Term note |
6,000 |
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|
6,000 |
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Deferred rent payable and other |
— |
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|
151 |
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Current liabilities of discontinued operations |
$ |
22,665 |
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$ |
20,742 |
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