| Summary of Discontinued Operations |
The following tables summarizes the assets and liabilities of the discontinued operations as of December 31, 2019 and 2018:
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2019 |
|
2018 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Accounts receivable, net |
|
$ |
497,577 |
|
|
$ |
2,335,228 |
|
Other receivables |
|
— |
|
|
206,798 |
|
Inventory, net |
|
— |
|
|
792,857 |
|
Prepaid expenses and other current assets |
|
— |
|
|
797,562 |
|
Total current assets of discontinued operations |
|
497,577 |
|
|
4,132,445 |
|
Intangibles assets, net |
|
— |
|
|
27,474,214 |
|
Goodwill |
|
— |
|
|
2,002,035 |
|
Total long-term assets of discontinued operations |
|
— |
|
|
29,476,249 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
387,975 |
|
|
— |
|
Accrued expenses and other current liabilities |
|
3,503,037 |
|
|
5,402,494 |
|
Long-term debt, current portion |
|
— |
|
|
1,050,000 |
|
Contingent consideration, current portion |
|
— |
|
|
1,097,137 |
|
Total current liabilities of discontinued operations |
|
3,891,012 |
|
|
7,549,631 |
|
Long term debt, net of current portion |
|
— |
|
|
14,327,882 |
|
Contingent consideration, net of current portion |
|
— |
|
|
6,697,217 |
|
Other long-term liabilities |
|
1,755,000 |
|
|
— |
|
Total long-term liabilities of discontinued operations |
|
1,755,000 |
|
|
21,025,099 |
|
The following table summarizes the results of discontinued operations for the year ended December 31, 2019 and 2018:
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
Product revenue, net |
|
$ |
10,166,611 |
|
|
$ |
11,298,423 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
Cost of product sales |
|
4,288,234 |
|
|
4,217,594 |
|
General and administrative |
|
137,911 |
|
|
165,674 |
|
Sales and marketing |
|
8,521,190 |
|
|
7,977,243 |
|
Amortization expense |
|
2,425,083 |
|
|
2,703,896 |
|
Impairment of intangible assets |
|
1,449,121 |
|
|
— |
|
Change in fair value of contingent consideration |
|
247,042 |
|
|
169,289 |
|
Total operating expenses |
|
17,068,581 |
|
|
15,233,696 |
|
Interest expense, net |
|
(793,860 |
) |
|
(827,882 |
) |
Gain on sale of Pediatric Portfolio |
|
7,964,924 |
|
|
— |
|
Income (loss) from discontinued operations before tax |
|
269,094 |
|
|
(4,763,155 |
) |
Income tax expense |
|
70,888 |
|
|
15,556 |
|
Income (loss) from discontinued operations, net of tax (inclusive of gain on sale) |
|
$ |
198,206 |
|
|
$ |
(4,778,711 |
) |
The significant non-cash operating items from the discontinued operations for the years ended December 31, 2019 and 2018 are contained below. There were no non-cash investing items from the discontinued operations for the years ended December 31, 2019 and 2018.
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
Operating activities |
|
|
|
|
Amortization |
|
$ |
2,425,083 |
|
|
$ |
2,703,896 |
|
Impairment of intangible assets |
|
1,449,121 |
|
|
— |
|
Stock-based compensation, excluding amount included within gain on sale of Pediatric Portfolio |
|
327,180 |
|
|
137,082 |
|
Amortization of inventory fair value adjustment associated with acquisition of TRx and Avadel Pediatric Product |
|
107,271 |
|
|
170,629 |
|
Non-cash interest expense |
|
— |
|
|
302,882 |
|
Gain on Aytu Divestiture |
|
(7,964,924 |
) |
|
— |
|
Change in fair value of contingent consideration liability |
|
247,042 |
|
|
169,289 |
|
|