| Summary of Discontinued Operations |
The following table summarizes the results of discontinued operations for the three months ended March 31, 2020 and 2019:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2020 |
|
2019 |
Product revenue, net |
|
$ |
(717,342 |
) |
|
$ |
2,835,074 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
Cost of product sales |
|
— |
|
|
1,195,344 |
|
General and administrative |
|
— |
|
|
41,374 |
|
Sales and marketing |
|
— |
|
|
2,712,626 |
|
Amortization expense |
|
— |
|
|
744,099 |
|
Change in fair value of contingent consideration |
|
— |
|
|
159,462 |
|
Total operating expenses |
|
— |
|
|
4,852,905 |
|
Other income (expense): |
|
|
|
|
Change in value of Guarantee |
|
1,755,000 |
|
|
— |
|
Interest expense, net |
|
— |
|
|
(238,158 |
) |
Total other income (expense) |
|
1,755,000 |
|
|
(238,158 |
) |
Income (loss) from discontinued operations before tax |
|
1,037,658 |
|
|
(2,255,989 |
) |
Income tax expense |
|
— |
|
|
35,685 |
|
Income (loss) from discontinued operations, net of tax |
|
$ |
1,037,658 |
|
|
$ |
(2,291,674 |
) |
The significant non-cash operating items from the discontinued operations for the three months ended March 31, 2020 and 2019 are contained below. There were no non-cash investing items from the discontinued operations for the three months ended March 31, 2020 and 2019.
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|
|
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|
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|
|
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Three Months Ended March 31, |
|
|
2020 |
|
2019 |
Operating activities |
|
|
|
|
Amortization |
|
$ |
— |
|
|
$ |
744,099 |
|
Stock-based compensation, excluding amount included within gain on sale of Pediatric Portfolio |
|
— |
|
|
49,364 |
|
Change in fair value of contingent consideration liability |
|
— |
|
|
159,462 |
|
Change in value of Guarantee |
|
(1,755,000 |
) |
|
— |
|
The following tables summarizes the assets and liabilities of the discontinued operations as of March 31, 2020 and December 31, 2019:
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|
|
|
|
|
|
|
|
|
|
|
March 31, 2020 |
|
December 31, |
|
|
(unaudited) |
|
2019 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Accounts receivable, net |
|
$ |
— |
|
|
$ |
497,577 |
|
Total current assets of discontinued operations |
|
— |
|
|
497,577 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
— |
|
|
387,975 |
|
Accrued expenses and other current liabilities |
|
6,409,668 |
|
|
3,503,037 |
|
Total current liabilities of discontinued operations |
|
6,409,668 |
|
|
3,891,012 |
|
Other long-term liabilities |
|
— |
|
|
1,755,000 |
|
Total long-term liabilities of discontinued operations |
|
— |
|
|
1,755,000 |
|
|