v3.26.1
Discontinued Operations
 6 Months Ended
Jun. 27, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Note 4: Discontinued Operations

 

As of December 27, 2025, the Company has characterized its Biotechnology segment as a discontinued operation on its financial statements, as follows: on May 21, 2025, the Company announced the planned formal separation of its healthcare assets, known as Alyea, and noted that the scope and method of a partial or full disposition, whatever the methodology, would be determined and announced at a later date.

 

 

In accordance with the provisions of ASC 360-10 and ASC 205-20, the Company has separately reported the assets and liabilities of the discontinued operations in the consolidated balance sheets. The assets and liabilities have been reflected as discontinued operations in the consolidated balance sheet, as of June 27, 2026 and December 28, 2025, and consists of the following (in $000s):

 

Schedule Of Discontinued Operations

   June 27, 2026   December 27, 2025 
Assets from discontinued operations          
Prepaid expenses and other current assets  $—   $205 
Total current assets from discontinued operations   —    205 
Property and equipment, net 1   1,170    1,170 
Intangible assets, net 2   12,862    13,826 
Deferred income taxes   

776

    776 
Other assets   

—

    211 
Total other assets from discontinued operations   14,808    15,983 
Total assets from discontinued operations  $14,808   $16,188 
Liabilities from discontinued operations          
Accounts payable  $55   $54 
Accrued liabilities - other 3   1,500    2,500 
Total current liabilities from discontinued operations   1,555    2,554 
Total noncurrent liabilities from discontinued operations   —   — 
Total liabilities from discontinued operations  $—   $— 

 

1The Company’s property and equipment consisted of the following (in $000s):
2The Company’s intangible assets consisted of the following:
3The Company’s accrued liabilities consisted of the following:

 

   June 27, 2026   December 27, 2025 
Projects under construction  $1,170   $1,170 
Property and equipment   1,170    1,170 
Less accumulated depreciation   —    — 
Total property and equipment, net, from discontinued operations  $1,170   $1,170 

 

No depreciation expense has been recorded for the 13 weeks ended June 27, 2026 and June 28, 2025, or the 26 weeks ended June 27, 2026 and June 28, 2025.

 

2The Company’s intangible assets consisted of the following (in $000s):

 

   June 27, 2026   December 27, 2025 
Soin intangible  $19,293   $19,293 
Intangible assets   19,293    19,293 
Less accumulated amortization   (6,431)   (5,467)
Total intangible assets  $12,862   $13,826 

 

Amortization expense was $1.0 million and $0.5 million for the 13 weeks ended June 27, 2026 and June 28, 2025, respectively, and $1.0 million and $1.1 million for the 26 weeks ended June 27, 2026 and June 28, 2025, respectively.

 

 

Soin Intangible Assets

 

Effective as of December 28, 2022, the Company acquired Soin Therapeutics LLC, a Delaware limited liability company (“STLLC”), and its product, a patent-pending, novel formulation of low-dose naltrexone. The assets acquired by the Company consist of 1) three pending patents related to the methods of using low-dose Naltrexone to treat chronic pain, 2) final formula for Naltrexone, and 3) orphan drug designation as approved by the FDA. The Company reviewed the assets acquired and determined that no in-process research and development costs were acquired as part of the transaction, and, thus, all assets acquired represent intellectual property and should be capitalized. The Company will amortize the intangible assets ratably over a ten (10)-year period.

 

3 The Company’s accrued liabilities consisted of the following (in $000s):

 

   June 27, 2026   December 27, 2025 
Due to Dr. Soin  $1,500   $2,500 
Total accrued expenses  $1,500   $2,500 

 

In accordance with the provisions of ASC 360-10 and ASC 205-20, the Company has not included in the results of continuing operations the results of operations of the discontinued operations in the consolidated statements of operations and comprehensive income (loss). The results of operations for this entity for the 26 weeks ended June 27, 2026 and June 28, 2025 have been reflected as discontinued operations in the consolidated statements of operations and comprehensive income (loss) and consist of the following (in $000s):

 

   June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025 
   13 Weeks Ended   26 Weeks Ended 
   June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025 
Revenues  $—   $—   $—   $— 
Cost of revenues   —    —    —    — 
Gross profit   —    —    —    — 
Operating expenses from discontinued operations:                    
Selling, general and administrative expenses   1,210    657    1,387    1,197 
Total operating expenses from discontinued operations   1,210    657    1,387    1,197 
Operating loss from discontinued operations   (1,210)   (657)   (1,387)   (1,197)
Other income (expense) from discontinued operations                    
Total other income (loss), net   —    —   $—   $— 
Loss before provision for income taxes from discontinued operations   (1,210)   (657)   (1,387)   (1,197)
Income tax provision   —    2,956    —    2,956 
Net loss from discontinued operations  $(1,210)  $(3,613)  $(1,387)  $(4,153)

 

In accordance with the provisions of ASC 360-10 and ASC 205-20, the Company has separately reported the cash flow activity of the discontinued operations in the consolidated statements of cash flows. The cash flow activity from discontinued operations for the 26 weeks ended June 27, 2026 and June 28, 2025 have been reflected as discontinued operations in the consolidated statements of cash flows and consist of the following (in $000s):

 

   June 27, 2026   June 28, 2025 
   26 weeks ended 
   June 27, 2026   June 28, 2025 
DISCONTINUED OPERATING ACTIVITIES:          
Net loss from discontinued operations  $(1,387)  $(4,153)
Depreciation and amortization   964    1,126 
Noncash expense funded by parent   1,419    — 
Change in deferred taxes   —    3,057 
Changes in assets and liabilities:          
Prepaids and other current assets   —    — 
Accounts payable and accrued expenses   (999)   (30)
Net cash used in operating activities from discontinued operations  $(3)  $— 
DISCONTINUED INVESTING ACTIVITIES:          
Net cash used in investing activities from discontinued operations  $—   $— 
DISCONTINUED FINANCING ACTIVITIES:          
Net cash used in financing activities from discontinued operations  $—   $— 
Effect of changes in exchange rate on cash and cash equivalents   —    — 
DECREASE IN CASH AND CASH EQUIVALENTS   —    — 
CASH AND CASH EQUIVALENTS, beginning of period   —    — 
CASH AND CASH EQUIVALENTS, end of period  $—   $—