Note 3 - Discontinued Operations

12 Months Ended

Dec. 31, 2025

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3.	Discontinued Operations

On November 12, 2025, after considering all reasonably available options and a broader strategic reassessment, the Company’s board of directors approved the wind down of the Company’s ClearUP business, which the Company substantially completed prior to the end of the year. In connection with the wind down of the ClearUP business, the Company incurred approximately $347 thousand in charges during the year ended December 31, 2025, which included $230 thousand for the write-off of inventory and $117 thousand for the write-off of property and equipment. We expect to incur additional related expenditures in the range of approximately $20 thousand to $50 thousand in 2026 for disposal costs on remaining finished goods. The estimates of the charges and costs that we expect to incur, and the timing thereof, are subject to a number of assumptions and actual results may differ materially from those described above. In addition, we may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur as a result of, or in connection with, the wind down of the ClearUP business.

Financial Information of Discontinued Operations

The following table summarizes the assets and liabilities classified as discontinued operations for each of the periods presented (in thousands):

	*As of December 31,*
	*2025*		*2024*
Current assets of discontinued operations
Accounts receivable	$	1	$	69
Prepaid expenses and other current assets		14		9
Inventory, net		—		319
Total current assets of discontinued operations		15		397

Non-current assets of discontinued operations
Property and equipment, net		—		117
Total non-current assets of discontinued operations		—		117

Current liabilities of discontinued operations
Other accrued expenses		6		15
Total current liabilities of discontinued operations	$	6	$	15

Loss from discontinued operations, in the consolidated statements of operations, reflects the results of the ClearUP business and does not include any allocation of general corporate overhead expense or interest expense of the Company.

The following table summarizes the significant line items included in loss from discontinued operations, in the consolidated statements of operations (in thousands):

	*For the Year Ended December 31,*
	*2025*			*2024*
Revenue	$	382		$	780
Cost of Sales		350			778
Gross Profit		32			2
Operating expenses:
Sales and marketing		800			1,187
Total operating expenses		800			1,187
Loss from discontinued operations		(768	)		(1,185	)
Loss on disposal of assets		(117	)		—
Net loss from discontinued operations	$	(885	)	$	(1,185	)

The following table summarizes significant non-cash operating items, and capital expenditures of discontinued operations included in the 2025 and 2024 consolidated statements of cash flows (in thousands):

	*For the Year Ended December 31,*
	*2025*			*2024*
Significant non-cash operating activities
Loss from discontinued operations	$	(885	)	$	(1,185	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property and equipment		117			—
Reserve for inventory obsolescence		230			354
Changes in operating assets and liabilities:
Accounts receivable		69			105
Inventory		89			83
Net cash used in operating activities - discontinued operations	$	(380	)	$	(643	)

Tivic Health Systems, Inc. 10-K