During 2023, the Company committed to a plan to sell its Utah operations. Accordingly, certain of the assets and liabilities held by the Company’s Utah subsidiary were presented as a disposal group held for sale on the consolidated balance sheet as of December 31, 2023. The sale of the Utah assets was completed on March 7, 2024.

On November 7, 2024, the Company sold its Florida Business through the sale of fourteen dispensaries and two cultivation / manufacturing facilities for gross proceeds of $5 million, consisting of approximately $3 million in cash and $2 million of promissory note. Following the sale of the Florida Business, the Company had one license and one cultivation facility in the state, neither of which remained in active operation. On April 17, 2025, the Company sold the license for $5 million in cash, with the potential for an additional $2.5 million contingent payment in the event of an adult use program in the state. The company continues to market for future disposition of a cultivation facility in Florida. On April 25, 2025, the Company entered into a definitive agreement, subject to closing, to sell the cultivation site for $11 million.

In early 2025, the Company committed to a plan to sell its Illinois operations (the “Illinois Business") which are comprised of two dispensaries and one cultivation / manufacturing facility.

In early 2025, the Company also committed to a plan to sell its remaining California operations (the "remaining California Business") which is comprised of three dispensaries and one cultivation / manufacturing facility. During the six months ended June 30, 2025, the Company disposed of two of the three dispensaries, see Note 17 Divestitures (DeSoto and THC). In July 2025, the cultivation / manufacturing facility was divested, see Note 19 Subsequent Events.

The planned disposals as of June 30, 2025 did not represent a strategic shift of the Company that had or will have a major effect on the Company’s operations and financial results. Accordingly, the operations were not segregated and were presented as continuing operations in the condensed consolidated interim statements of operations and comprehensive loss as of June 30, 2025 and December 31, 2024. The disposal group was stated at fair value less costs to sell and comprised the following assets and liabilities:


	June 30, 2025		December 31, 2024
Cash	$	—	$	239
Accounts receivable	1,081		34
Inventory	7,413		364
Prepaid expenses and other current assets	893		381
Property, plant and equipment	13,149		9,516
Right-of-use assets	24,282		2,364
Right of use assets - finance leases, net	104		102
Intangible assets, net	1,787		4,778
Assets held for sale	$	48,709	$	17,778
Accounts payable and other liabilities	$	(6,109)	$	(104)
Lease liabilities	(26,377)		(2,552)
Liabilities held for sale	$	(32,486)	$	(2,656)

The non-recurring fair value measurement for the disposal group has been categorized as a Level 3 fair value utilizing Level 3 inputs and using a market approach, based on available data for transactions in the region and discussions with potential acquirers.