Divestitures |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Discontinued Operations and Disposal Groups [Abstract] | |
| Divestitures | 12. Divestitures During the six months ended June 30, 2026, the Company did not execute any divestitures. Proceeds for divestitures completed in 2025 included a secured promissory note in the original principal amount of $5.5 million to be repaid quarterly over 5 years bearing interest at 10% annually through maturity in July 2030. At June 30, 2026, the book value of the note receivable was $2.7 million including a reserve for potential credit loss. The Company monitors the collectability of the note and will record adjustments to the estimated net realizable value as deemed necessary until the note is settled. At June 30, 2026, the current portion of the promissory note less associated reserve was $0.5 million and is recorded in prepaid and other current assets on the Company’s condensed consolidated balance sheets and the long-term portion of the promissory note less associated reserve was $2.2 million and is recorded in other assets on the Company’s condensed consolidated balance sheets. The Company's interest in this note receivable is a variable interest and the underlying entity is a variable interest entity (“VIE”). The Company is not the primary beneficiary of this VIE because the Company does not individually have the power to direct the activities that are most significant to the entity and accordingly, the VIE is not consolidated. As part of the divestitures, the Company entered into a transition services agreement (“TSA”) with the buyers to assist them in the transition of certain functions, including, but not limited to, information technology, finance and accounting, for an initial period of 60-120 days unless extended by mutual agreement. As of June 30, 2026 and December 31, 2025, the Company has $0.1 million and $0.2 million, respectively, in TSA receivables and escrow due from the buyers recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets. During the six months ended June 30, 2025, the Company completed the divestitures of certain product lines for combined consideration of $15.5 million. The divestiture agreements provided for contingent consideration provisions with a maximum potential value of $4.0 million based on the achievement of specified post-closing conditions over a 2 year performance period ending December 31, 2026. No amounts related to the contingent consideration have been recognized through June 30, 2026. The combined net loss on divestitures was $23.9 million for the six months ended June 30, 2025. The Company incurred divestiture-related expenses of $8.6 million during the six months ended June 30, 2025 which are recorded in divestiture-related expenses on the Company’s condensed consolidated statements of operations.
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