Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.10.0.1
Discontinued Operations
9 Months Ended
Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 11. Discontinued Operations:

During the quarter ended March 31, 2017, the Company made the decision to discontinue the operations of its wholly-owned subsidiary BDI. BDI had developed a proprietary Enhanced Surface Plasmon Resonance technology platform for the detection of molecular interactions. The decision to adopt this plan was made following an evaluation by the Company’s Board of Directors in January 2017 of the estimated results of operations projected during the near to mid-term period for BDI, including consideration of product development required and updated sales forecasts, and estimated additional cash resources required. The Company substantially disposed of the BDI assets and operations during 2017 by selling the assets and licensing the intellectual property rights. The Company has recognized the exit of BDI in accordance with ASC 205-20, Discontinued Operations. As such, the historical results of BDI, following its 2016 acquisition, have been classified as discontinued operations.
 
The Company’s historical financial statements have been revised to present the operating results of the BDI business as a discontinued operation. Assets and liabilities related to the discontinued operations of BDI were approximately as follows as of September 30, 2018 (unaudited) and December 31, 2017:
 
Current Liabilities
 
September 30, 2018
   
December 31, 2017
 
Accounts payable
 
$
16,000
   
$
16,000
 
Accrued expenses
   
-
     
28,000
 
Deferred revenue
   
-
     
137,000
 
Total current liabilities
 
$
16,000
   
$
181,000
 
Summarized results of the discontinued operation are as follows for the three and nine months ended September 30, 2018 and 2017 (unaudited):
   
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
   
2018
   
2017
   
2018
   
2017
 
Revenue
 
$
-
   
$
7,000
   
$
137,000
   
$
37,000
 
Cost of revenue
   
-
     
2,000
     
41,000
     
6,000
 
Gross margin
   
-
     
5,000
     
96,000
     
31,000
 
Operating expenses
   
-
     
(26,000
)
   
-
     
975,000
 
Operating income (loss)
   
-
     
31,000
     
96,000
     
(944,000
)
Escrow forfeiture gain
   
-
     
-
     
-
     
135,000
 
Impairment loss
   
-
     
-
     
-
     
(2,754,000
)
Income (loss) from discontinued operations, net of tax
 
$
-
   
$
31,000
   
$
96,000
   
$
(3,563,000
)