Divestiture of CIED Business

3 Months Ended

Mar. 31, 2026

Divestiture of CIED Business

Divestiture of CIED Business

Note 4. Divestiture of CIED Business

As described in Note 2, on October 1, 2025, the Company completed the sale of its CIED Business. Accordingly, the CIED Business is reported as discontinued operations in accordance with ASC 205-20 - Discontinued Operations and the amounts for the three months ended March 31, 2025 have been recast to conform to this discontinued operations presentation.

In accordance with ASC 205-20, only expenses specifically identifiable and related to a business to be disposed are presented in discontinued operations. Additionally, since the repayment of the Company’s SWK Loan Facility (see Note 7) was deemed to be contractually required as part of the CIED Business sale, interest expense on the repaid SWK Loan Facility is also classified within discontinued operations. The following table shows the financial results of the discontinued operations for the three months ended March 31, 2025:


Net sales		$	3,079
Cost of goods sold			1,998
Gross profit			1,081
Sales and marketing			2,042
General and administrative			150
Research and development			34
Total operating expenses			2,226
Interest expense			901
Net loss		$	(2,046)

Total operating and investing cash flows of discontinued operations for the three months ended March 31, 2025 are comprised of the following:


Significant operating non-cash reconciliation items
Depreciation and amortization		$	594
Stock-based compensation			123
Changes in operating assets and liabilities:
Inventory			(206)
Prepaid expenses and other			83
Other liabilities			(74)

Significant investing items
Expenditures for property and equipment			(7)

See Note 2 for discussion of the financial results of discontinued operations recognized for the three months ended March 31, 2026 which relates to the Company’s sale of its Orthobiologics Business.