Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.5.0.2
Discontinued Operations
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

10. Discontinued Operations

In the fourth quarter of 2014, the board of directors concluded that the Company should focus its efforts and resources on the ongoing collaborations it has with Intrexon. In December of 2014, the Company’s board of directors authorized the exploration of strategic alternatives with respect to the Company’s consumer probiotics business. These alternatives could have included joint ventures, strategic partnerships or alliances, a sale of the consumer probiotics products business or other possible transactions.

On June 27, 2016, the Company completed the sale of its consumer probiotics business to ProBiora Health, LLC, (as described in Note 8).

As of June 30, 2016 and December 31, 2015, the assets and liabilities of the discontinued operations included in the accompanying balance sheets are as follows:

 

     2016      2015  

Accounts Receivable, net

    $ 13,575       $ 21,115   

Inventory, net

      —           321,509   

Prepaid expenses and other current assets

      —           2,450   
  

 

 

     

 

 

  

Assets of discontinued operations

    $ 13,575       $ 345,074   
  

 

 

     

 

 

  

Accounts payable and accrued expenses

    $ 169,479       $ 138,758   

Deferred revenue

      —           14,215   

Liabilities of discontinued operations

    $ 169,479       $ 152,973   
  

 

 

     

 

 

  

The following information summarizes the results of discontinued operations for the three and six months ended June 30, 2016 and 2015:

 

     Three Months
Ended
June 30, 2016		      Three Months
Ended
June 30, 2015		      Six Months
Ended
June 30, 2016		      Six Months
Ended
June 30, 2015		  

Revenues of discontinued operations, net

    $ 190,796       $ 242,038       $ 453,054       $ 605,812   

Costs and expenses of discontinued operations

      223,593         228,110         474,738         513,311   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net (Loss) Profit from discontinued operations

    $ (32,797 )     $ 13,928       $ (21,684 )     $ 92,501   
  

 

 

     

 

 

     

 

 

     

 

 

  

In addition, the Company entered into a Transition Services Agreement (the “Agreement”) with ProBiora Health. Under the terms of the agreement, the Company will provide accounting, inventory management, shipping, logistics, customer, vendor, supplier, general business support, IT, pharmacovigilance, quality assurance, regulatory, and clinical services to ProBiora Health. In exchange for the services, ProBiora Health is to pay the Company three percent (3%) of is net sales of all ProBiora3 products sold during the term of the Agreement. The term of the Agreement is for a ninety day (90) period but may be terminated earlier at the option of ProBiora Health. The Company is also subletting space to ProBiora Health at the rate of $1,623 per month. The sublease runs through February 2017. The sublease may be terminated prior to February 2017 under certain provisions by either party. The Company will also provide fulfillment services to ProBiora Health during the term that the sublease is in effect. The Company will receive compensation for those services in an amount equal to the direct costs in providing such services.