| Schedule of Discontinued Operations and Disposals |
The following table outlines the calculation of the initial gain on sale of the Transaction:
|
|
|
|
Cash proceeds |
$ |
35,000 |
|
Cash held in indemnity escrow (Restricted cash) |
|
5,000 |
|
Fair value of Vanguard common units |
|
3,530 |
|
Carrying value of lease to Vanguard |
|
1,245 |
|
Estimated future distributions for working capital adjustments and other obligations |
|
(4,290 |
) |
Less: Carrying value of net assets disposed |
|
(20,500 |
) |
Gain on sale |
$ |
19,985 |
|
Details of the net loss from discontinued operations, net of tax, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Sales |
|
$ |
25,358 |
|
|
$ |
38,586 |
|
|
$ |
62,753 |
|
|
$ |
74,675 |
|
Cost of sales |
|
|
(25,613 |
) |
|
|
(42,974 |
) |
|
|
(65,846 |
) |
|
|
(74,768 |
) |
Gross loss |
|
|
(255 |
) |
|
|
(4,388 |
) |
|
|
(3,093 |
) |
|
|
(93 |
) |
Selling, general and administrative expenses |
|
|
(2,568 |
) |
|
|
(2,611 |
) |
|
|
(4,729 |
) |
|
|
(4,747 |
) |
Interest expense |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
Gain on sale of assets |
|
|
19,985 |
|
|
|
— |
|
|
|
19,985 |
|
|
|
— |
|
Income (loss) from discontinued operations before income taxes |
|
|
17,159 |
|
|
|
(7,003 |
) |
|
|
12,156 |
|
|
|
(4,847 |
) |
Provision for income taxes |
|
|
(865 |
) |
|
|
— |
|
|
|
(865 |
) |
|
|
— |
|
Net income (loss) from discontinued operations, net of tax |
|
|
16,294 |
|
|
|
(7,003 |
) |
|
|
11,291 |
|
|
|
(4,847 |
) |
The following table summarizes the assets and liabilities of the discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Trade receivables, net |
|
$ |
508 |
|
|
$ |
11,505 |
|
Inventories, net |
|
|
— |
|
|
|
11,881 |
|
Other Receivables |
|
|
— |
|
|
|
80 |
|
Prepaid expenses and deposits |
|
|
— |
|
|
|
1,453 |
|
Total current assets of discontinued operations |
|
|
508 |
|
|
|
24,919 |
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
— |
|
|
|
15,037 |
|
Right-of-use assets |
|
|
— |
|
|
|
5,393 |
|
Total non-current assets of discontinued operations |
|
|
— |
|
|
|
20,430 |
|
Total assets of discontinued operations |
|
$ |
508 |
|
|
$ |
45,349 |
|
LIABILITIES |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade payables |
|
$ |
1,304 |
|
|
$ |
13,245 |
|
Accrued liabilities |
|
|
311 |
|
|
|
3,236 |
|
Lease liabilities - current |
|
|
— |
|
|
|
1,437 |
|
Total current liabilities of discontinued operations |
|
|
1,615 |
|
|
|
17,918 |
|
Non-current liabilities |
|
|
|
|
|
|
Lease liabilities - non-current |
|
|
— |
|
|
|
4,374 |
|
Total liabilities of discontinued operations |
|
$ |
1,615 |
|
|
$ |
22,292 |
|
|