As discussed in Note 1 — Organization and Business Operations, in August 2025, the Company announced its plan to monetize the Brands segment through the sale of EveryLife and its Marketplace segment through a sale or by strategically repurposing its intellectual property to enhance its Financial Technology offerings. During the third quarter of 2025, the Company evaluated each divestiture individually and determined each represented a strategic shift and met held-for-sale and discontinued operations accounting criteria. Accordingly, the Company began to separately reporting the results of these segments as discontinued operations in its Condensed Consolidated Statements of Operations and presented the related assets and liabilities as held for sale in its Condensed Consolidated Balance Sheets.

Subsequent to September 30, 2025, the Company reassessed its plan to sell the Marketplace segment based on updated market conditions and expected transaction economics. As of December 31, 2025, the Company determined that the Marketplace disposal group no longer met the criteria for classification as held for sale. Accordingly, the Marketplace assets were reclassified as held for use in accordance with ASC 360-10 and evaluated for recoverability. As a result of this evaluation, the Company recorded an impairment loss of $3.6 million during the fourth quarter of 2025 to write off the remaining carrying value of the Marketplace capitalized software asset. The Marketplace assets are no longer presented as held for sale in the Consolidated Balance Sheets as of December 31, 2025. The exit of the Marketplace segment continues to be presented as discontinued operations, as it represents a strategic shift that has a major effect on the Company’s operations and financial results.

As of December 31, 2025, the Brands segment continues to meet the held-for-sale and discontinued operations accounting criteria. Management expects to enter into a definitive agreement during the first half of 2026 and continues to engage with interested parties. The assets and liabilities of the Brands segment continue to be presented as held for sale in the Consolidated Balance Sheets. The results of both the Marketplace and Brands segments are reported in the “Loss from discontinued operations, net of tax” line in the Consolidated Statements of Operations.

The following table summarizes the key components of the operating results of the discontinued operations within the Consolidated Statements of Operations for the years ended December 31, 2025 and 2024:


	For the year ended December 31, 2025				For the year ended December 31, 2024
	Marketplace		Brands		Marketplace		Brands
Revenues, net	$	1,119,256	$	14,215,357	$	2,951,292	$	10,187,097
Cost of revenues (exclusive of depreciation and amortization shown below)	351,037		527		1,711,333		6,243
Cost of goods sold (exclusive of depreciation and amortization shown below)	12,351		9,604,751		5,576		6,700,385
Operating costs	8,360,729		7,862,892		12,261,729		5,552,022
Depreciation and amortization	645,059		81,725		770,780		140,923
Operating loss	(8,249,920)		(3,334,538)		(11,798,126)		(2,212,476)
Other expense, net	(22,631)		(108,057)		(67,626)		(7,677)
Income tax expense	—		—		—		419
Loss from discontinued operations, net of tax	$	(8,272,551)	$	(3,442,595)	$	(11,865,752)	$	(2,219,734)


	December 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	353,355	$	596,660
Accounts receivable, net	72,372		185,735
Inventory	2,665,203		2,624,918
Prepaid expenses and other current assets	215,986		612,282
Intangible assets, net	1,072,762		—
Deposits	28,243		—
Total current assets held for sale	4,407,921		4,019,595
Intangible assets, net	—		1,154,487
Deposits	—		31,415
Total non-current assets held for sale	—		1,185,902
Total assets held for sale	$	4,407,921	$	5,205,497

Liabilities
Current liabilities:
Accounts payable	$	854,889	$	634,281
Accrued expenses	357,183		386,797
Deferred revenue	1,399,969		49,479
Total liabilities held for sale	$	2,612,041	$	1,070,557

The cash flows related to the discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows. The following table presents cash flow information for the discontinued segments.