Discontinued Operations

9 Months Ended

Apr. 30, 2025

Note 2 – Discontinued operations

Prior to July 24, 2023, we operated a clinical laboratory, doing business as Enzo Clinical Labs, which provided reference, molecular and esoteric diagnostic medical testing services in the New York, New Jersey, and Connecticut medical communities. Effective July 24, 2023, we completed the sale of certain assets used in the operation of Enzo Clinical Labs and the assignment of certain clinical lab liabilities to Labcorp for an aggregate purchase price of $113.25 million in cash. In accordance with the sale, we ceased our clinical services operations. Excluded from the sale of the clinical services assets were its cash and accounts receivable. As a consequence of the sale, we have classified as discontinued operations all income and expenses attributable to the clinical services business for the fiscal year 2025 and 2024 periods presented.

The following table sets forth the condensed operating results of the discontinued operations for the three and nine months ended April 30:

	Three Months Ended April 30						Nine Months Ended April 30
	2025			2024			2025			2024
General and administrative expense	$	270		$	835		$	740		$	3,085
Other expense – net		146			54			268			943
Loss from discontinued operations	$	(416	)	$	(889	)	$	(1,008	)	$	(4,028	)

The following table sets forth the condensed carrying amounts of major classes of assets and liabilities of the discontinued operations as of the dates indicated:

	April 30, 2025		July 31, 2024
Carrying amounts of major current assets included as part of discontinued operations:
Prepaid and other current	$	34	$	182

Carrying amounts of major current liabilities included as part of discontinued operations:
Accrued liabilities and trade payables		7,429		14,979
Operating lease liabilities and other		2,097		1,990
Total current liabilities		9,526		16,969

Current liabilities of discontinued operations, net	$	9,492	$	16,787

Carrying amount of major non-current assets included as part of discontinued operations:
Right-of-use assets	$	945	$	1,308
Other		62		75
Total non-current assets		1,007		1,383

Carrying amount of major non-current liabilities included as part of discontinued operations:
Operating lease liabilities and other		2,065		3,649

Non-current liabilities of discontinued operations, net	$	1,058	$	2,266

During the nine months ended April 30, 2025, the cash used in operating activities of the discontinued operations was $8,397, primarily for reductions of trade payables and accrued liabilities, and the period loss. During the nine months ended April 30, 2024, the cash used in operating activities of the discontinued operations was $14,219, primarily for reductions of trade payables and accrued liabilities, and the period loss.

ENZO BIOCHEM INC 10-Q