| Schedule of Discontinued Operations |
Schedule of Discontinued Operations
| | |
December 31, 2025 | |
| Assets held for sale | |
| | |
| Accounts receivable, net | |
$ | 4,720 | |
| Non-trade receivables | |
| 13,410 | |
| Inventory | |
| 6,911 | |
| Prepaid expenses and other current assets | |
| 1,889 | |
| Total current assets held for sale | |
| 26,930 | |
| Property and equipment, net | |
| 105 | |
| Contract fulfilment assets | |
| 11,605 | |
| Other assets | |
| 322 | |
| Total non-current assets held for sale | |
| 12,032 | |
| Total assets held for sale | |
$ | 38,962 | |
| Liabilities held for sale | |
| | |
| Accounts payable | |
| 28,349 | |
| Accrued liabilities | |
| 9,708 | |
| Total liabilities held for sale | |
$ | 38,057 | |
Non-trade receivables are from the Company’s
manufactures who buy parts from the Company. The receivable is paid by the manufacturer after Company pays the related accounts payable
for the inventory.
Discontinued operations activity for the six months
ended 2026 covers the period January 1, 2026 through January 23, 2026. Discontinued operations activity for 2025 covers the entire three
or six month period.
DNA X, INC.
DISCONTINUED OPERATIONS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
(UNAUDITED)
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30, | | |
June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Net revenues | |
$ | — | | |
$ | 11,190 | | |
$ | 3,805 | | |
$ | 27,911 | |
| Cost of revenues | |
| — | | |
| 10,345 | | |
| 4,122 | | |
| 18,710 | |
| Gross profit (loss) | |
| — | | |
| 845 | | |
| (317 | ) | |
| 9,201 | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | |
| Research and development | |
| — | | |
| 909 | | |
| 913 | | |
| 2,542 | |
| Sales and marketing | |
| — | | |
| 3,445 | | |
| 1,123 | | |
| 6,684 | |
| General and administrative | |
| — | | |
| 1,752 | | |
| 453 | | |
| 3,721 | |
| Total operating expenses | |
| — | | |
| 6,106 | | |
| 2,489 | | |
| 12,947 | |
| Net loss from operations | |
| — | | |
| (5,261 | ) | |
| (2,806 | ) | |
| (3,746 | ) |
| Gain (loss) on sale of assets | |
| (252 | ) | |
| — | | |
| 15,311 | | |
| — | |
| Other income | |
| — | | |
| (215 | ) | |
| 49 | | |
| (179 | ) |
| Net before income taxes | |
| (252 | ) | |
| (5,476 | ) | |
| 12,554 | | |
| (3,925 | ) |
| Income tax benefit (expense) | |
| 243 | | |
| (139 | ) | |
| (2,295 | ) | |
| (271 | ) |
| Net income (loss) from discontinued operations | |
$ | (9 | ) | |
$ | (5,615 | ) | |
$ | 10,259 | | |
$ | (4,196 | ) |
The following cash flows are for discontinued
operations only and are supplemental to the Statement of Cash Flows that includes both continuing operations and discontinued operations.
DISCONTINUED OPERATIONS
CONSOLIDATED STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2026 and 2025
(IN THOUSANDS)
| | |
2026 | | |
2025 | |
| Cash flows from operating activities for discontinued operations: | |
| | | |
| | |
| Net income | |
$ | 10,259 | | |
$ | (6,056 | ) |
| Adjustments to reconcile net income to net cash used in operating activities: | |
| | | |
| | |
| Depreciation and amortization | |
| — | | |
| 1,852 | |
| Stock-based compensation | |
| 93 | | |
| 1,216 | |
| Release of customer allowance liability | |
| — | | |
| (5,490 | ) |
| Gain on sale of assets, net assets transferred | |
| (15,311 | ) | |
| — | |
| Other | |
| — | | |
| 36 | |
| Changes in operating assets and liabilities: | |
| | | |
| | |
| Accounts receivable | |
| 250 | | |
| 1,330 | |
| Non-trade receivable | |
| — | | |
| 152 | |
| Inventory | |
| 5,490 | | |
| 986 | |
| Prepaid expenses and other current assets | |
| 1,663 | | |
| (570 | ) |
| Contract fulfillment assets | |
| 129 | | |
| (4,383 | ) |
| Other assets | |
| (103 | ) | |
| (12 | ) |
| Accounts payable | |
| (1,934 | ) | |
| (2,265 | ) |
| Accrued liabilities | |
| — | | |
| (1,473 | ) |
| Income taxes payable | |
| — | | |
| 1,764 | |
| Net cash provided by (used in) operating activities from discontinued operations | |
| 536 | | |
| (12,913 | ) |
| Cash flows from investing activities | |
| | | |
| | |
| Net cash received from asset sale | |
| 3,358 | | |
| — | |
| Net cash provided by investing activities from discontinued operations | |
| 3,358 | | |
| — | |
|