Annual report pursuant to Section 13 and 15(d)

Disposal of a Business

v3.24.0.1
Disposal of a Business
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Disposal of a Business Disposal of a Business
In the fourth quarter of the year ended December 31, 2022, the Biodex Rehabilitation ("Rehab") business was deemed as held for sale. On April 3, 2023, the Company closed the sale of Rehab to Salona Global Medical Device Corporation ("Salona") for $1.0 million in cash at closing and an additional $7.0 million in deferred cash payments through January 1, 2024. Subsequent to the closing and during the three months ended June 30, 2023, significant negative events occurred which may impact the Company's ability to collect the remaining $7.0 million of cash payments, including disclosure by Salona that substantial doubt existed as to its ability to continue as a going concern. The Company applied ASC 450 Contingencies to determine the loss on the business disposal since remaining payments are contingent upon Salona's financial situation. Management determined it was not probable that the $7.0 million of cash payments would be collected. The Company recorded a loss on sale of business of $6.5 million in the Consolidated Statement of Operations during the year ended December 31, 2023.
The following table presents information related to the major classes of assets and liabilities that were classified as held for sale related to Rehab as of December 31, 2022 (in millions):
Successor
December 31, 2022
Inventories $ 3.9 
Prepaid expenses and other current assets 0.1 
Property, plant and equipment, net 0.7 
Goodwill 3.8 
Assets held for sale $ 8.5 
Accrued liabilities 0.7 
Other non-current liabilities 0.1 
Liabilities held for sale (1)
$ 0.8 
(1)Included in accrued expenses and other liabilities within the Consolidated Balance Sheets.