SINTX Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

Discontinued Operations

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

12. Discontinued Operations

As previously disclosed in Note 11, the Company completed the sale of its spine business in October 2018. Below is a summary of the retail spine operations that were sold.

Condensed Consolidated Balance Sheets - Unaudited

(in thousands, except share and per share data)

	September 30, 2018		December 31, 2017

Assets
Current assets held for sale:
Retail spine inventory, net	$	1,708	$	1,602
Long-term assets held for sale:
Property and equipment, net		959		1,162
Intangible assets, net		2,249		2,651
Total assets	$	4,916	$	5,415

Liabilities
Current liabilities held for sale:
Debt – related party	$	2,500	$	2,356

Condensed Consolidated Statements of Operations - Unaudited

(in thousands, except share and per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Product revenue	$	1,844		$	2,956		$	6,174		$	8,793
Costs of revenue		429			1,408			1,474			2,791
Gross profit		1,415			1,548			4,700			6,002
Operating expenses:
Research and development		403			410			1,119			1,166
General and administrative		198			191			547			546
Sales and marketing		1,094			1,529			3,358			4,801
Total operating expenses		1,695			2,130			5,024			6,513
Loss from discontinued operations	$	(280	)	$	(582	)	$	(324	)	$	(511	)

In the future, the Company will become an Original Equipment Manufacturer (“OEM”) of spinal silicon nitride products with only one customer for these products. Because of this change, the Company has included all product revenue and cost of sales in this discontinued operations model.