v3.26.1
Discontinued Operations
 6 Months Ended
Jun. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
The Distribution Agreement with DIXI Medical expired on September 30, 2025, after which the Company wound down and ceased all commercial activities on December 31, 2025, and completed the return of all remaining DIXI Medical product inventory by June 30, 2026. The Company concluded that the resulting abandonment of the DIXI Medical product operations represented a strategic shift that would have a major effect on the Company’s operations and financial results, and met the criteria for presentation as a discontinued operation under ASC 205‑20 effective June 30, 2026. As a result, the operating results of the DIXI Medical product operations are presented as discontinued operations in the Company’s condensed statements of operations and comprehensive loss, and the related assets and liabilities are presented separately in the Company’s condensed balance sheets for all periods presented in this Quarterly Report on Form 10‑Q.
Assets and liabilities attributable to the discontinued operations are included in our condensed balance sheets as follows:
June 30,December 31,
(in thousands)20262025
Assets
Accounts receivable$— $1,745 
Inventory— 2,034 
Current assets of discontinued operations— 3,779 
Liabilities
Accounts payable— 441 
Accrued liabilities— 155 
Current liabilities of discontinued operations$— $596 
The following table sets forth the operating results of the DIXI Medical product operations presented as discontinued operations:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Revenue$— $4,019 $65 $8,222 
Cost of goods sold— 2,100 28 4,092 
Gross profit— 1,919 37 4,130 
Operating expenses:
Sales and marketing— 554 — 1,152 
Income from discontinued operations— 1,365 37 2,978 
Net income from discontinued operations$— $1,365 $37 $2,978 
The Company did not allocate research and development or general and administrative expenses to its DIXI Medical product operations. No gain or loss was recognized on the abandonment, as the Company had no DIXI Medical product inventory as of June 30, 2026.
Cash flows attributable to the discontinued operations are included in our condensed statements of cash flows as follows:
Six Months Ended June 30,
(in thousands)20262025
Cash flows from operating activities
Changes in operating assets and liabilities:
Accounts receivable$1,745 $(367)
Inventory2,034 (187)
Prepaid expenses and other assets— 625 
Accounts payable(441)716 
Accrued liabilities(155)58 
Net cash provided by operating activities$3,183 $845 
There were no non-cash operating activities or cash flows from investing or financing activities related to the DIXI Medical product operations for the six months ended June 30, 2026 and 2025.