On November 22, 2024 (the “Closing Date”), the Company entered into an Asset Purchase Agreement (the “APA”) with ALZET, LLC, a subsidiary of Lafayette Instrument Co. (the “Purchaser”). Under the terms of the APA, the Company agreed to sell to the Purchaser substantially all the assets, and certain specified liabilities, related to the ALZET product line (the “Sale”). The APA provided for, subject to certain terms and conditions, the entry into a Transition Services Agreement, pursuant to which the Company agrees to perform certain transition services related to the purchased assets for up to six months after the Closing Date, subject to potential extensions.

On the Closing Date, the Company completed the transaction contemplated by the APA. Pursuant to the terms of the APA, the Purchaser paid the Company $17.5 million subject to certain adjustments, including for net working capital, and also agreed to assume certain liabilities with respect to the transferred assets.

As a result of the sale of the ALZET product line, the operating results from the Company's ALZET product line have been excluded from continuing operations and presented as discontinued operations in the accompanying Statements of Operations and Comprehensive Loss for all periods presented. The results of operations and gain from discontinued operations presented below include certain allocations that management believes fairly reflect the utilization of services provided to the ALZET product line. The allocations do include interest expense of the Oxford term loan as the loan was required to pay off at the close of sale of ALZET product line for all periods presented. The allocations do not include amounts related to general corporate administrative expenses. Therefore, these results of operations do not necessarily reflect what the results of operations would have been had the ALZET product line operated as a stand-alone entity.

The components of income from discontinued operations as reported in the Company’s statements of operations were as follows (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025			2024
Total revenues	$	—	$	1,525	$	—		$	2,856
Operating expenses:
Cost of product revenues		—		329		—			617
Selling, general and administrative		—		406		—			861
Total operating expenses		—		735		—			1,478
Other expense:
Interest and other expenses		—		445		69			974
Total costs and expenses		—		1,180		69			2,452
Income (loss) from discontinued operations		—		345		(69	)		404
Net income (loss) per share
Basic	$	—	$	0.01	$	—		$	0.01
Diluted	$	—	$	0.01	$	—		$	0.01
Weighted-average shares used in computing net (loss) income per share
Basic		31,042		31,038		31,042			30,838
Diluted		31,163		31,038		31,042			30,838

The following table presents certain non-cash items related to discontinued operations, which are included in the Company’s statements of cash flows (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Depreciation	$	—	$	2	$	—	$	4
Stock-based compensation expense		—		10		—		22
Non-cash items, net	$	—	$	12	$	—	$	26