Quarterly report [Sections 13 or 15(d)]

Assets Held for Sale and Discontinued Operations

v3.25.2
Assets Held for Sale and Discontinued Operations
6 Months Ended
Jun. 30, 2025
Assets Held for Sale and Discontinued Operations  
Assets Held for Sale and Discontinued Operations

4.     Assets Held for Sale and Discontinued Operations

See Note 2 — Basis of Presentation and Summary of Significant Accounting Policies under the caption “Assets Held for Sale and Discontinued Operations” for details on accounting criteria for held for sale and discontinued operations treatment.

The following tables summarize the results of operations of the entities that are being reported as discontinued operations in the condensed consolidated statements of operations and comprehensive loss:

Three Months Ended June 30, 

Six Months Ended June 30, 

2025

2024

2025

2024

Revenues, net

$

5,242

$

7,603

$

11,036

$

15,175

Cost of goods sold

(4,129)

(6,929)

(9,551)

(13,207)

Gross profit

1,113

674

1,485

1,968

Operating expenses:

Wages and benefits

1,083

1,468

2,502

2,961

General and administrative

497

594

1,109

1,200

Sales and marketing

15

57

36

119

Depreciation and amortization

237

387

578

773

Impairment loss

15,723

15,734

Total operating expenses

1,832

18,229

4,225

20,787

Operating loss

(719)

(17,555)

(2,740)

(18,819)

Three Months Ended June 30, 

Six Months Ended June 30, 

2025

2024

2025

2024

Other income (expense):

Interest income

1

Other income

81

249

81

390

Gain (loss) on foreign currency exchange

Interest expense

(1,821)

(1,415)

(3,282)

(2,783)

Corporate cost allocation

(452)

(676)

(948)

(1,178)

Total other expense

(2,192)

(1,842)

(4,149)

(3,570)

Loss from discontinued operations

$

(2,911)

$

(19,397)

$

(6,889)

$

(22,389)

Depreciation expense related to discontinued operations was $2,048 and $2,891 for the six months ended June 30, 2025 and 2024, respectively. Upon meeting the held for sale criteria, the Company ceased depreciating and amortizing its long-lived assets for the Disposal Groups, which primarily includes right-of-use assets and property, plant, and equipment.

Capital expenditures related to discontinued operations were $9 and $402 for the six months ended June 30, 2025 and 2024, respectively.

The following tables summarize the assets and liabilities classified as discontinued operations in the condensed consolidated balance sheets:

June 30, 2025

    

December 31, 2024

ASSETS

Current assets

Cash and cash equivalents

$

832

$

1,360

Restricted cash

24

24

Trade receivables, net

2,206

1,257

Inventories

7,171

8,037

Prepaid expenses and other current assets

214

345

Assets held for sale, current portion

10,447

11,023

Non-current assets

Property, plant and equipment, net

27,682

29,721

Right-of-use assets – finance, net

577

1,255

Right-of-use assets – operating, net

496

557

Other assets

1,133

1,324

Assets held for sale, net of current portion

$

29,888

$

32,857

LIABILITIES

Current liabilities

Accounts payable and accrued liabilities

3,624

5,022

Finance lease liability, current portion

213

842

Operating lease liability, current portion

148

139

Liabilities held for sale, current portion

3,985

6,003

Non-current liabilities

Finance lease liability, net of current portion

524

2,022

Operating lease liability, net of current portion

425

502

Massachusetts lease liability

45,239

41,556

Other liabilities

6

Liabilities held for sale, net of current portion

$

46,188

$

44,086

Assets and liabilities classified as held for sale are required to be recorded at the lower of carrying value or fair value less costs to sell. As of June 30, 2025, we determined that the fair value of the Disposal Groups, less costs to sell, was not less than their carrying value. The fair value of the Disposal Groups was estimated using the expected sale price as negotiated with the third-party buyers.