Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 6 Months Ended
Jun. 30, 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, we reclassified revenues and expenses related to the GDS Business and our Cardiosonix subsidiary to discontinued operations. The following amounts have been segregated from continuing operations and included in discontinued operations in the consolidated statements of operations:

 

    Three Months
Ended
June 30, 2011		     Six Months
Ended
June 30, 2011		  
             
Net sales   $ 3,201,095     $ 5,736,934  
Cost of goods sold     1,004,336       1,762,949  
Gross profit     2,196,759       3,973,985  
                 
Operating expenses:                
Research and development     102,133       278,219  
Selling, general and administrative     687,355       756,557  
Total operating expenses     789,488       1,034,776  
                 
Other expense, net     (87 )     (221 )
Income taxes     (478,444 )     (999,257 )
                 
Income from discontinued operations   $ 928,740     $ 1,939,731