Quarterly report [Sections 13 or 15(d)]

Closing of the Asset Sale (Tables)

v3.26.1
Closing of the Asset Sale (Tables)
3 Months Ended
Mar. 31, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule Of Discontinued Operations

  

    December 31, 2025  
Assets held for sale        
Accounts receivable, net   $ 4,720  
Non-trade receivables     13,410  
Inventory     6,911  
Prepaid expenses and other current assets     1,889  
Total current assets held for sale     26,930  
Property and equipment, net     105  
Contract fulfilment assets     11,605  
Other assets     322  
Total non-current assets held for sale     12,032  
Total assets held for sale   $ 38,962  
Liabilities held for sale        
Accounts payable     28,349  
Accrued liabilities     9,708  
Total liabilities held for sale   $ 38,057  

 

Non-trade receivables are from the Company’s manufactures who buy parts from the Company. The receivable is paid by the manufacturer after Company pays the related accounts payable for the inventory.

 

Discontinued operations activity for the first quarter of 2026 covers the period January 1, 2026 through January 23, 2026. Discontinued operations activity for the first quarter of 2025 covers the entire quarter.

 

 

DISCONTINUED OPERATIONS

CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2026 and 2025

(IN THOUSANDS)

 

    2026     2025  
Net revenues   $ 3,805     $ 16,721  
Cost of revenues     4,122       8,365  
Gross profit (loss)     (317 )     8,356  
Operating expenses                
Research and development     913       1,633  
Sales and marketing     1,123       3,239  
General and administrative     453       1,969  
Total operating expenses     2,489       6,841  
Net income (loss) from operations     (2,806 )     1,551  
Gain on sale of assets     15,563        
Other income     49        
Income before income tax expense     12,806       1,551  
Income tax expense     (2,538 )     (132 )
Net income from discontinued operations   $ 10,268     $ 1,419  

 

The following cash flows are for discontinued operations only and are supplemental to the Statement of Cash Flows that includes both continuing operations and discontinued operations. (In thousands of dollars).

 

DISCONTINUED OPERATIONS

CONSOLIDATED STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2026 and 2025

(IN THOUSANDS)

 

    2026     2025  
Cash flows from operating activities for discontinued operations:                
Net income   $ 10,268     $ 1,419  
Adjustments to reconcile net income to net cash used in operating activities:                
Depreciation and amortization           1,055  
Stock-based compensation     93       290  
Release of customer allowance liability           (5,271 )
Gain on sale of assets, net assets transferred     (15,563 )      
Other           (56 )
Changes in operating assets and liabilities:                
Accounts receivable     250       (649 )
Non-trade receivable           667  
Inventory     5,490       2,255  
Prepaid expenses and other current assets     1,663       (110 )
Contract fulfillment assets     129       (2,548 )
Other assets     (103 )      
Accounts payable     (1,934 )     (5,554 )
Accrued liabilities         (280 )
Net cash provided by (used in) operating activities from discontinued operations     293       (8,782 )
Cash flows from investing activities                
Net cash received from asset sale     3,358        
Net cash provided by investing activities from discontinued operations     3,358