| Schedule of assets and liabilities held for sale |
Total gains (losses) recognized by the Company upon consummation of the disposition of its net assets held for sale for the year ended December 31, 2025 were as follows: | | | | | | | | | | | | | | | | | Year ended December 31, 2025 | Disposal Group | | Discontinued Operations | | Held for Sale Entities | Missouri | | $ | (2,397) | | | $ | — | | Hemp-derived THC | | (7,059) | | | — | | Phytoscience Management Group, Inc. | | — | | | 247 | | North Shore Assets(1) | | — | | | 331 | | Acres Assets(2) | | — | | | 108 | | Illinois Assets | | — | | | (508) | | Rokshaw Limited (“Rokshaw”)’s noncannabis operation | | — | | | 1,029 | | Total gain (loss) on disposal of net assets held for sale | | $ | (9,456) | | | $ | 1,207 | | | | | | | (1) On April 10, 2025, the Company completed the sale of its North Shore Assets, having received all required regulatory approvals. | (2) Refer to Note 9 — Notes receivable for further discussion. |
Total gains (losses) recognized by the Company upon consummation of the disposition of its net assets held for sale for the year ended December 31, 2024 were as follows: | | | | | | | | | | | | | | | | | Year ended December 31, 2024 | Disposal Group | | Discontinued Operations | | Held for Sale Entities | Adult-use Maine | | $ | 71 | | | $ | — | | California | | 568 | | | — | | Colorado | | 1,687 | | | — | | Oregon | | 384 | | | — | | Michigan | | 2,087 | | | — | | Kentucky - CBD | | 212 | | | — | | North Shore Assets | | — | | | (899) | | Acres Assets(1) | | — | | | (1,180) | | Rokshaw Limited’s noncannabis operation | | — | | | 2,362 | | Total gain on disposal of net assets held for sale | | $ | 5,009 | | | $ | 283 | | | | | | | (1) Refer to Note 9 — Notes receivable for further discussion. |
Total gains (losses) recognized by the Company upon consummation of the disposition of its net assets held for sale for the year ended December 31, 2023 were as follows: | | | | | | | | | | | | | | | | | Year ended December 31, 2023 | Disposal Group | | Discontinued Operations | | Held for Sale Entities | Adult-use Maine | | $ | 355 | | | $ | — | | California | | 3,009 | | | — | | Colorado | | 1,435 | | | — | | Oregon | | 2,724 | | | — | | Michigan | | 10,507 | | | — | | Kentucky - CBD | | 6,840 | | | — | | Total gain on disposal of net assets held for sale | | $ | 24,870 | | | $ | — | | | | | | | |
The changes in assets and liabilities held for sale as of December 31, 2025 and 2024 were as follows: | | | | | | | | | | | | | | | | | | Assets held for sale | Discontinued Operations | | Held for Sale | | Total | Balance at December 31, 2023 | $ | 16,908 | | | $ | 4,579 | | | $ | 21,487 | | Transferred out, net | (1,255) | | | (4,579) | | | (5,834) | | Balance at December 31, 2024 | 15,653 | | | — | | | 15,653 | | Transferred (out) in, net | (12,355) | | | 383 | | | (11,972) | | Balance at December 31, 2025 | $ | 3,298 | | | $ | 383 | | | $ | 3,681 | |
| | | | | | | | | | | | | | | | | | Liabilities associated with assets held for sale | Discontinued Operations | | Held for Sale | | Total | Balance at December 31, 2023 | $ | 8,287 | | | $ | 886 | | | $ | 9,173 | | Transferred in (out), net | 184 | | | (452) | | | (268) | | Balance at December 31, 2024 | 8,471 | | | 434 | | | 8,905 | | Transferred out, net | (1,398) | | | (434) | | | (1,832) | | Balance at December 31, 2025 | $ | 7,073 | | | $ | — | | | $ | 7,073 | |
The following table summarizes the major classes of assets and liabilities of the Company’s discontinued operations as of December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | As of December 31, | Assets | | 2025 | | 2024 | Inventories, net | | $ | — | | | $ | 3,717 | | Prepaid expenses and other current assets | | 278 | | | 62 | | Total current assets | | 278 | | | 3,779 | | Deferred tax asset(1) | | 3,020 | | | 7,363 | | Property, plant and equipment, net | | — | | | 3,822 | | Right-of-use assets, operating lease, net | | — | | | 689 | | Total non-current assets | | 3,020 | | | 11,874 | | Total assets | | $ | 3,298 | | | $ | 15,653 | | | | | | | Liabilities | | | | | Accrued expenses(2) | | $ | 7,060 | | | $ | 8,318 | | Lease liabilities, operating - current | | 13 | | | 140 | | Total current liabilities | | 7,073 | | | 8,458 | | Lease liabilities, operating - net of current | | — | | | 13 | | Total non-current liabilities | | — | | | 13 | | Total liabilities | | $ | 7,073 | | | $ | 8,471 | | | | | | | (1) Deferred tax asset is primarily a result of the formal dissolution of certain legal entities classified as discontinued operations. | (2) Consists primarily of accrued litigation contingencies. See Note 26 — Commitments and contingencies for further details. |
The following table presents the Company’s condensed consolidated statements of operations for its discontinued operations for the years ended December 31, 2025, 2024, and 2023. | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | | 2025 | | 2024 | | 2023 | Total revenues, net | | $ | 11,592 | | | $ | 9,208 | | | $ | 30,532 | | Cost of goods sold | | 14,046 | | | 10,478 | | | 42,404 | | Gross profit | | (2,454) | | | (1,270) | | | (11,872) | | Total operating expenses | | 10,000 | | | 5,174 | | | 15,773 | | Loss from operations | | (12,454) | | | (6,444) | | | (27,645) | | Total other expense, net | | (8,128) | | | (3,271) | | | (23,018) | | Loss from discontinued operations before provision for income taxes | | (20,582) | | | (9,715) | | | (50,663) | | (Provision for) benefit from income taxes(1) | | (5,668) | | | (683) | | | 2,971 | | Net loss from discontinued operations | | $ | (26,250) | | | $ | (10,398) | | | $ | (47,692) | | | | | | | | | (1) The provision for income taxes for the years ended December 31, 2025 and 2024 is primarily a result of the formal dissolution of certain legal entities that were associated with the Company’s discontinued operations. The benefit from incomes taxes for the year ended December 31, 2023 is primarily a result of tax benefits taken in the ordinary course of business, prior to moving the entities to discontinued operations. |
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