Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.3.0.814
Discontinued Operations
 9 Months Ended
Sep. 30, 2015
Discontinued Operations

12. Discontinued Operations

During 2013, we consummated the sale of GVE Newco, LLC (“GVE”), a wholly-owned subsidiary of ours representing our non-branded entertainment media business and discontinued our direct response television operations (“DRTV”). Accordingly, the assets and liabilities, operating results, and cash flows for these businesses are presented as discontinued operations separate from our continuing operations, for all periods presented in these consolidated condensed financial statements and footnotes, unless indicated otherwise.

The sale of GVE to Cinedigm was subject to customary adjustments, including a post-closing working capital adjustment. The losses from discontinued operations generated during 2015 are mainly attributable to the non-cash charge of $7.3 million for the working capital receivable due from Cinedigm, settlement costs, and legal costs associated with the dispute. After the sale was consummated, we continued providing extensive administrative and accounting services to the buyer through May 2014. We have not provided any significant services since that time.

The loss from discontinued operations amounts reported on our consolidated statements of operations were comprised of the following amounts:

 

     Three Months Ended
September 30, 		     Nine Months Ended
September 30, 		 

(in thousands)

    2015      2014      2015      2014  

Net revenue

    $ —        $ 7       $ —        $ 2,516   
  

 

 

     

 

 

     

 

 

     

 

 

  

Loss from operations before income taxes

      (10,695 )       (82 )       (12,282 )       (54 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Loss from operations of discontinued operations

    $ (10,695 )     $ (82 )     $ (12,282 )     $ (54 )