Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 3 Months Ended
Mar. 31, 2012
Discontinued Operations
2. Discontinued Operations

 

In 2009, the Company’s Board of Directors decided to discontinue the operations of, and attempt to sell, our Cardiosonix subsidiary. This decision was based on the determination that the blood flow measurement device segment was no longer considered a strategic initiative of the Company, due in large part to positive achievements related to our other device product and drug development initiatives. The operations of Cardiosonix were effectively wound down during 2011.

 

In 2011, our Board of Directors and our stockholders approved the sale of the GDS Business as well as the disposal of the related extended warranty contracts to Devicor for a net purchase price of $30.1 million.

 

As a result of the sale of the GDS Business and discontinuing operations of our Cardiosonix subsidiary, we reclassified revenues and expenses related to the GDS Business and our Cardiosonix subsidiary to discontinued operations for 2011. The following amounts have been segregated from continuing operations and included in discontinued operations in the consolidated statements of operations:

 

    Three Months
Ended
March 31, 2011		  
       
Net sales   $ 2,535,839  
Cost of goods sold     758,613  
Gross profit     1,777,226  
         
Operating expenses:        
Research and development     176,086  
Selling, general and administrative     69,202  
Total operating expenses     245,288  
         
Other expense, net     (134 )
Income taxes     (520,813 )
         
Income from discontinued operations   $ 1,010,991