DISCONTINUED OPERATIONS AND DIVESTITURES

9 Months Ended

Sep. 30, 2025

DISCONTINUED OPERATIONS AND DIVESTITURES

DISCONTINUED OPERATIONS AND DIVESTITURES

NOTE 2. DISCONTINUED OPERATIONS AND DIVESTITURES

As of September 30, 2025 and December 31, 2024, all assets and liabilities of the former hemp/cannabis business are presented as current in the Condensed Consolidated Balance Sheets. The carrying amounts of the former hemp/cannabis assets and liabilities that were classified as assets and liabilities of discontinued operations held for sale were as follows:


	September 30,			December 31,
	2025			2024
Property, plant and equipment, net	$	—		$	1,051
Current assets of discontinued operations held for sale	$	—		$	1,051

Accounts payable	$	300		$	1,210
Accrued expenses		33			71
Current liabilities of discontinued operations held for sale	$	333		$	1,281

Net liabilities	$	(333)		$	(230)

On May 6, 2025, the Company closed the sale of the Needle Rock Farms land property and received cash proceeds of $770. Accordingly, there are no remaining assets held for sale on the Condensed Consolidated Balance Sheets as of September 30, 2025.

Net (loss) income from discontinued operations for the nine months ended September 30, 2025 and 2024 was as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Revenues, net	$	—		$	—		$	—		$	—
Cost of goods sold		—			—			—			—
Gross loss		—			—			—			—
Operating expenses:
Sales, general and administrative		—			(46)			15			(366)
Research and development		—			—			(402)			133
Other operating (income) expense, net		(9,380)			149			(8,072)			(617)
Total operating expenses (income)		(9,380)			103			(8,459)			(850)
Operating income (loss) from discontinued operations		9,380			(103)			8,459			850
Other income (expense):
Interest expense		(128)			(69)			(372)			(210)
Total other expense		(128)			(69)			(372)			(210)
Income (loss) from discontinued operations before income taxes		9,252			(172)			8,087			640
Provision (benefit) for income taxes		—			—			—			—
Income (loss) from discontinued operations	$	9,252		$	(172)		$	8,087		$	640

During the three month periods ended September 30, 2025 and 2024, the Company settled outstanding obligations which resulted in reversals of previously accrued liabilities of $53 and $10, respectively. During the nine month periods ended September 30, 2025 and 2024, the Company settled outstanding obligations which resulted in reversals of previously accrued liabilities of $474 and $1,561, respectively. Additionally, for the nine month period ended September 30, 2025, Other operating expense, net was comprised of $500 provision for credit loss for the GVB promissory note (see Note 6 “Debt”), $293 of impairment charges related to the sale of Needle Rock Farms land property offset by $9,500 related to the Dorchester settlement (see Note 12 “Commitments and Contingencies").

Income from discontinued operations before income taxes will be offset by consolidated net operating losses incurred for the three and nine-month periods ended September 30, 2025 and 2024, resulting in no provision for income taxes being recorded in discontinued operations.

Cash flow information from discontinued operations for nine month period ended September 30, 2025 and 2024 was as follows:


							Nine Months Ended
							September 30,
							2025			2024
Cash used in operating activities							$	1,209		$	1,135
Cash provided by investing activities							$	770		$	22

Depreciation and amortization							$	-		$	-
Capital expenditures							$	-		$	-