On March 7, 2025, the Company’s Board of Directors authorized a strategy to transition to a pure-play Power company, focusing future investments on the Power Analog Solutions and Power IC businesses. In connection with this strategy, the Company evaluated various strategic alternatives for its Display business, including a sale, merger, joint venture, licensing, or wind-down; however, the Company was unable to complete a transaction on terms that the Company’s Board of Directors believed were in the best interests of the Company and its stockholders.

Accordingly, on April 6, 2025, the Company’s Board of Directors unanimously approved the decision to shut down the Company’s Display business (the “Discontinued Business”), including the liquidation of MMS, the Company’s indirect wholly owned subsidiary that operated the Display business. As a result, the Display business qualifies as a discontinued operation in accordance with ASC 205-20.

The following table summarizes the results from discontinued operations, net of tax, for the three and six months ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended						Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025
Net sales	$	6,075		$	7,730		$	7,721		$	17,286
Cost of sales		2,443			4,068			3,597			10,507
Gross profit		3,632			3,662			4,124			6,779
Operating expenses:
Selling, general and administrative expenses		136			41			244			1,584
Research and development expenses		118			2,972			251			9,253
Early termination charges		—			1,561			—			1,561
Impairment and other charges		7			7,460			7			7,587
Total operating expenses		261			12,034			502			19,985
Operating income (loss) from discontinued operations		3,371			(8,372	)		3,622			(13,206	)
Interest income		0			84			0			215
Interest expense		(15	)		(122	)		(29	)		(242	)
Foreign currency gain (loss), net		116			(424	)		165			(428	)
Other income (loss), net		(1	)		144			7			144
Income (Loss) from discontinued operations before income tax expense		3,471			(8,690	)		3,765			(13,517	)
Income tax expense, net		685			190			929			190
Income (Loss) from discontinued operations, net of tax	$	2,786		$	(8,880	)	$	2,836		$	(13,707	)

For the three and six months ended June 30, 2025, the Company recognized the impairment charges of $7,362 thousand, primarily related to certain design tool software contracts in connection with the shutdown of the Display business.

The following table provides supplemental cash flows information related to discontinued operations (in thousands):


	Six Months Ended
	June 30, 2026		June 30, 2025
Significant non-cash operating activities:
Depreciation and amortization	$	11	$	304
Provision for severance benefits		19		(243	)
Stock-based compensation		—		(353	)
Impairment charges		—		7,362
Investing activities:
Capital expenditures	$	—	$	—

Although the Company has discontinued the Display business, certain limited activities remain active solely for the purpose of completing the orderly wind-down of operations and fulfilling pre-existing customer obligations, including the sale of “end of life” (“EOL”) Display products, which is being conducted by MSK. A small team has been retained exclusively to facilitate these wind-down activities.

As such, the result of these limited ongoing activities do not qualify for presentation as part of continuing operations and are instead presented as part of discontinued operations. The following table presents the revenue, gross profit and operating expenses related to the Company’s continuing involvement with the Discontinued Business for the period presented (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Net sales	$	6,075	$	2,318	$	7,721	$	2,318
Gross profit		3,632		933		4,124		933
Operating expenses		246		143		493		143