Quarterly report pursuant to Section 13 or 15(d)

Discontinuing Operations

v3.20.2
Discontinuing Operations
6 Months Ended
Jun. 30, 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 $657 thousand and $1.4 million of interest expense from the Convertible Note and Advance from NDX to discontinuing operations during the three and six months ended June 30, 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 and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2020 2019 2020 2019
Revenue $ —    $ 4,621    $ —    $ 9,638   
Cost of revenues —    3,465    —    7,100   
Gross profit —    1,156    —    2,538   
Operating expenses:
Research and development —    436    —    890   
General and administrative (31)   1,983    (31)   3,510   
Sales and marketing —    590    —    1,513   
Transaction costs —    402    —    651   
Total operating expenses (31)   3,411    (31)   6,564   
Income (loss) from discontinuing operations 31    (2,255)   31    (4,026)  
Other income (expense):
Interest expense —    (1,063)   —    (2,173)  
Other 35    —    43    —   
Total other income (expense) 35    (1,063)   43    (2,173)  
Net income (loss) from discontinuing operations $ 66    $ (3,318)   $ 74    $ (6,199)  

Unaudited condensed consolidated carrying amounts of major classes of assets and liabilities from discontinuing operations were as follows as of June 30, 2020 and December 31, 2019 (in thousands):

June 30, 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 $ 611    $ 1,137   
Due to Interpace Biosciences, Inc. —    92   
Current liabilities of discontinuing operations $ 611    $ 1,229   


Cash flows used in operating activities of discontinuing operations consisted of the following for the six-months ended June 30, 2020 and 2019 (in thousands):
  Six Months Ended June 30,
  2020 2019
Income (loss) from discontinuing operations $ 74    $ (6,199)  
Adjustments to reconcile income (loss) from discontinuing operations to net cash used in operating activities, discontinuing operations
Depreciation —    496   
Amortization —    11   
Provision for bad debts (42)   25   
Accounts payable settlements (43)   —   
Stock-based compensation (8)   74   
Amortization of operating lease right-of-use assets —    345   
Amortization of discount of debt and debt issuance costs —    602   
Loss on extinguishment of debt —    328   
Interest added to Convertible Note —    343   
Change in working capital components:
Accounts receivable 113    86   
Other current assets —    166   
Other non-current assets —    (55)  
Accounts payable, accrued expenses and deferred revenue (483)   (680)  
Obligations under operating leases —    (369)  
Due to Interpace Biosciences, Inc. (92)   —   
Net cash used in operating activities, discontinuing operations $ (481)   $ (4,827)