On January 6, 2026, the Company completed the sale of all of the shares of common stock of PWSH. The assets and liabilities of PWSH met the accounting criteria to be classified as held for sale and were aggregated and reported on separate lines of the Condensed Consolidated Balance Sheet as of December 31, 2025. Additionally, PWSH has been reported as a discontinued operation in the Condensed Consolidated Statements of Operations for all periods presented. During the three months ended March 31, 2026, the Sale resulted in net cash proceeds of $51,261 and an after-tax gain on the Sale of $85,153. The operating results and cash flows of PWSH were immaterial for the period from January 1, 2026 through the closing date of January 6, 2026.

The financial results of PWSH are presented as income (loss) from discontinued operations, net of income taxes on our condensed consolidated statement of operations for the three and six months ended June 30, 2025. The following table presents financial results of PWSH:


	Three Months Ended		Six Months Ended
	June 30, 2025
Revenue, net	$	8,091	$	15,185
Cost of revenue	4,425		8,060


Operating expenses	8,456		16,920
Government subsidies received	801		814
Interest income and other, net	39		99
Loss before income taxes	(3,950)		(8,882)
Provision for income taxes	395		668
Net loss from discontinued operations	(4,345)		(9,550)
Net loss attributable to non-controlling interests and redeemable non-controlling interest	218		477
Net loss from discontinued operations attributable to Pixelworks, Inc.	$	(4,127)	$	(9,073)

The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale in discontinued operations:


	Year Ended
	December 31, 2025
Assets:
Cash and cash equivalents	$	6,824
Accounts receivable, net	4,481
Inventories	3,484
Prepaid expenses and other current assets	1,136
Property and equipment, net	3,530
Operating lease right-of-use assets	375
Other assets, net	185
Goodwill	18,407
Total current assets	38,422




Total long-term assets	—
Total assets	$	38,422


	Year Ended
	December 31, 2025
Liabilities:
Accounts payable	$	720
Accrued liabilities and current portion of long-term liabilities	1,941
Short-term line of credit	2,145
Deposit liability	12,672
Current portion of income taxes payable	429
Operating lease liabilities, net of current portion	98

Total current liabilities	18,005




Total long-term liabilities	—
Total liabilities	$	18,005


	Three Months Ended		Six Months Ended
	June 30, 2025
Depreciation and amortization	$	480	$	1,196
Stock-based compensation	245		574

Purchases of property and equipment	(193)		(209)

Goodwill resulted from the acquisition of ViXS Systems, Inc. in 2017, whereby we recorded goodwill of $18,407 that was classified as an asset held for sale as of December 31, 2025. Following the Sale on January 6, 2026, goodwill is no longer classified as an asset of Pixelworks Inc.