Quarterly report pursuant to sections 13 or 15(d)

Discontinued Operations

v2.3.0.15
Discontinued Operations
 9 Months Ended
Sep. 30, 2011
Discontinued Operations [Abstract]  
Discontinued Operations
2. Discontinued Operations:

On October 28, 2010, the Company signed an Asset Purchase Agreement (the "Purchase Agreement") with Next Step Products, LLC (the "Buyer"). Pursuant to the Purchase Agreement, the Company sold substantially all of the assets (the "Asset Sale") of the Legacy Commercial and Pool Lighting Businesses. The results of operations of the Legacy Commercial and Pool Lighting Businesses have been reflected as discontinued operations for all periods presented.

Pursuant to the Purchase Agreement, the Buyer paid $1.0 million in cash in connection with closing the Asset Sale and agreed to pay approximately $1.3 million over the seven month period ending May 28, 2011. Of the total purchase price of approximately $2.3 million, approximately $1.3 million accounted for the purchase of inventory.

The $1.0 million portion of the purchase price paid in connection with closing included $750,000 of non-refundable deposits previously paid by the Buyer. Subject to the terms of the Purchase Agreement and a secured promissory note, the remaining approximately $1.3 million was to be paid to the Company over the seven month period ending May 28, 2011 as the Buyer sold the purchased inventory, with 50% of the agreed upon value of the inventory being paid no later than February 28, 2011 and the balance being paid no later than May 28, 2011. As of March 4, 2011, the $1.3 million balance of the purchase price was paid in full. In addition, the Buyer assumed certain liabilities related to the Legacy Commercial and Pool Lighting Businesses.

The components of discontinued operations for the three and nine months ended September 30, 2011 and 2010 are as follows:

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
     2011      2010     2011      2010  

Revenue

    $ 3,272       $ 1,994,405      $ 10,766       $ 6,140,958   

Income (loss) from operations

    $ 3,272       $ (379,946 )    $ 7,102       $ (1,121,320 ) 

Loss on write-down of assets not sold

      —           (602,867 )      —           (602,867 ) 

Transaction and legal costs

      —           (45,328 )      —           (45,328 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Discontinued operations

    $ 3,272       $ (1,028,141 )    $ 7,102       $ (1,769,515 )