Quarterly report pursuant to Section 13 or 15(d)

Discontinuing Operations

v3.20.1
Discontinuing Operations
3 Months Ended
Mar. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinuing Operations

As described in Note 1, the Company sold its BioPharma Business and Clinical Business in July 2019. In conjunction with the BioPharma Disposal, the Company repaid its debt to SVB and PFG. The Company elected to allocate approximately $786 thousand of interest expense from the Convertible Note and Advance from NDX to discontinuing operations during the three months ended March 31, 2019. Revenue and other significant accounting policies associated with the discontinuing operations have not changed since the most recently filed audited financial statements as of and for the year ended December 31, 2019.

Summarized results of the Company's unaudited condensed consolidated discontinuing operations are as follows for the three months ended March 31, 2020 and 2019 (in thousands):

 
Three Months Ended March 31,
 
2020
 
2019
Revenue
$

 
$
5,017

Cost of revenues

 
3,635

Gross profit

 
1,382

Operating expenses:
 
 
 
Research and development

 
454

General and administrative
(8
)
 
1,527

Sales and marketing

 
923

Transaction costs

 
249

Total operating expenses
(8
)
 
3,153

Income (loss) from discontinuing operations
8

 
(1,771
)
Other income (expense):
 
 
 
Interest expense

 
(1,110
)
Total other income (expense)

 
(1,110
)
Net income (loss) from discontinuing operations
$
8

 
$
(2,881
)

Unaudited condensed consolidated carrying amounts of major classes of assets and liabilities from discontinuing operations were as follows as of March 31, 2020 and December 31, 2019 (in thousands):

 
March 31, 2020
 
December 31, 2019
Current assets of discontinuing operations:
 
 
 
Accounts receivable, net of allowance for doubtful accounts of $4,518 in 2020; $4,536 in 2019
$

 
$
71

Current assets of discontinuing operations
$

 
$
71

 
 
 
 
Current liabilities of discontinuing operations
 
 
 
Accounts payable and accrued expenses
$
764

 
$
1,137

Due to Interpace Biosciences, Inc.
97

 
92

Current liabilities of discontinuing operations
$
861

 
$
1,229


 
Three Months Ended March 31,
 
2020
 
2019
Income (loss) from discontinuing operations
$
8

 
$
(2,881
)
 
 
 
 
Adjustments to reconcile income (loss) from discontinuing operations to net cash used in operating activities, discontinuing operations
 
 
 
Depreciation

 
256

Amortization

 
6

Provision for bad debts
(18
)
 

Accounts payable settlements
(26
)
 

Stock-based compensation

 
39

Amortization of operating lease right-of-use assets

 
94

Amortization of discount of debt and debt issuance costs

 
593

Interest added to Convertible Note

 
113

Change in working capital components:
 
 
 
Accounts receivable
89

 
(151
)
Other current assets

 
(272
)
Other non-current assets

 
(1
)
Accounts payable, accrued expenses and deferred revenue
(347
)
 
(942
)
Obligations under operating leases

 
(31
)
Deferred rent payable and other

 
(151
)
Due to Interpace Biosciences, Inc.
5

 

Net cash used in operating activities, discontinuing operations
$
(289
)
 
$
(3,328
)