Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

Discontinued Operations
9 Months Ended
Sep. 30, 2012
Discontinued Operations [Abstract]  
Discontinued Operations
  2. Discontinued Operations


In 2009, the Company's Board of Directors decided to discontinue the operations of our Cardiosonix subsidiary and hold the assets for sale, based on the determination that the blood flow measurement device segment was no longer considered a strategic initiative of the Company. 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 $30.3 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
September 30,
    Nine Months
September 30,
Net sales   $ 1,785,540     $ 7,522,474  
Cost of goods sold     560,909       2,323,858  
Gross profit     1,224,631       5,198,616  
Operating expenses:                
Research and development     293,990       572,209  
Selling, general and administrative     149,799       296,652  
Total operating expenses     443,789       868,861  
Other expense, net     (363 )     (585 )
Income taxes     (1,001,161 )     (1,001,161 )
(Loss) income from discontinued operations   $ (220,682 )   $ 3,328,009