Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.8
Discontinued Operations
 12 Months Ended
Dec. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Discontinued Operations
 
On December 29, 2011 the Company entered into an agreement to sell certain assets of our Pharmakon business unit to Informed Medical Communications, Inc. (“Informed”) in exchange for potential future royalty payments and an ownership interest in Informed. In the fourth quarter of 2012, the Company wrote-off all of the assets related to the sale of Pharmakon to Informed as it believes that these assets have become impaired. The write-offs, totaling $0.7 million, are reflected in asset impairments in the 2012 Consolidated Statement of Comprehensive Loss. On July 19, 2010, the Board approved closing the TVG business unit. The Company notified employees and issued a press release announcing this decision on July 20, 2010. The Consolidated Statements of Comprehensive Loss reflect the presentation of Pharmakon and TVG as discontinued operations in all periods presented.

A rollforward of the liabilities recognized in the consolidated balance sheet as of December 31, 2013 and December 31, 2012 is as follows: 
Accrued liability as of January 1, 2012
$
1,120

Add: Costs incurred, excluding non-cash charges
—

Less: Cash payments
(1,115
)
Accrued liability as of December 31, 2012 (1)
$
5

Add: Costs incurred, excluding non-cash charges
—

Less: Cash payments
(5
)
Accrued liability as of December 31, 2013
$
—


(1)
Accrued liability at December 31, 2012 consists of Pharmakon employee severance costs.

The table below presents the significant components of Pharmakon's and TVG’s results included in Loss from Discontinued Operations, Net of Tax in the consolidated statements of comprehensive loss for the years ended December 31, 2013 and 2012.

 
For the Years Ended December 31,
 
2013
 
2012
Revenue, net
$
—

 
$
—

 
 
 
 
Loss from discontinued operations, before income tax
(44
)
 
(51
)
Income tax expense
5

 
8

Loss from discontinued operations, net of tax
$
(49
)
 
$
(59
)


The major classes of assets and liabilities included in the consolidated balance sheets for Pharmakon and TVG as of December 31, 2013 and December 31, 2012 are as follows:

 
December 31,
 
2013
 
2012
Current assets
$
—

 
$
14

Non-current assets
150

 
150

Total assets
$
150

 
$
164

Current liabilities
$
405

 
$
368

Non-current liabilities
619

 
1,006

Total liabilities
$
1,024

 
$
1,374