v3.26.1
Assets and liabilities held for sale and discontinued operations
 6 Months Ended
Jun. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Assets and liabilities held for sale and discontinued operations
Note 5 — Assets and liabilities held for sale and discontinued operations
Total gains (losses) recognized by the Company upon consummation of the disposition of its net assets associated with discontinued operations as of June 30, 2026 were as follows:
Discontinued Operations
Hemp Business$151 
Total gains (losses) recognized by the Company upon consummation of the disposition of its net assets held for sale as of June 30, 2025 were as follows:
Held for Sale Entities
Phytoscience Management Group, Inc.$(1,096)
North Shore Assets(1)
$(841)
Acres Assets(2)
$17,539 
Rokshaw Limited ("Rokshaw")’s noncannabis operation£2,558 
(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.
The changes in assets and liabilities held for sale as of June 30, 2026 and December 31, 2025 were as follows:
Assets held for saleDiscontinued OperationsHeld for Sale EntitiesTotal
Balance at December 31, 2024$15,653 $— $15,653 
Transferred (out) in, net(12,355)383 (11,972)
Balance at December 31, 20253,298 383 3,681 
Transferred out, net(489)(383)(872)
Balance at June 30, 2026$2,809 $— $2,809 
Liabilities associated with assets held for saleDiscontinued OperationsHeld for Sale EntitiesTotal
Balance at December 31, 2024$8,471 $434 $8,905 
Transferred out, net(1,398)(434)(1,832)
Balance at December 31, 20257,073 — 7,073 
Transferred (out) in, net(287)— (287)
Balance at June 30, 2026$6,786 $— $6,786 
Note 6 — Discontinued operations
On December 30, 2025, the Company approved plans to discontinue operations in two markets, Hemp-derived THC and Missouri, both of which represented strategic shifts having a major effect on the Company’s operations and financial results. Accordingly, the financial results for both operating units were reclassified as discontinued operations as of June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025.
Hemp-derived THC: The decision to exit the hemp-derived THC market was driven by recent federal and state legislative changes that materially restricted the legal definition of hemp and significantly curtailed the sale and distribution of hemp-derived THC products. These regulatory changes eroded demand, and no alternative legal markets for the Company's hemp-derived THC products currently exist.
Missouri: The decision to exit the Missouri market was driven by persistent declines in operating performance and management's determination that projected future cash flows were insufficient to recover the carrying value of the associated asset group.
The following table summarizes the major classes of assets and liabilities of the Company's discontinued operations as of June 30, 2026 and December 31, 2025:
As of
June 30, 2026December 31, 2025
Assets
Prepaid expenses and other current assets$8 $278 
Total current assets8 278 
Deferred tax asset(1)
2,801 3,020 
Total non-current assets2,801 3,020 
Total assets$2,809 $3,298 
Liabilities
Accrued expenses(2)
$6,786 $7,060 
Lease liabilities, operating - current— 13 
Total current liabilities$6,786 $7,073 
Total liabilities$6,786 $7,073 
(1) Deferred tax asset is primarily a result of the formal dissolution of certain legal entities classified as discontinued operations.
(2) Consists primarily of accrued litigation contingencies. See Note 26 — Commitments and contingencies for additional information.
The following table presents the Company's condensed consolidated results for its discontinued operations for the three and six months ended June 30, 2026 and 2025:
Three months ended June 30,Six months ended June 30,
2026202520262025
Total revenues, net$(7)$3,935 $1,404 $7,318 
Cost of goods sold157 4,465 1,016 8,241 
Gross (loss) profit(164)(530)388 (923)
Total operating expenses(60)2,702 451 4,468 
Loss from operations(104)(3,232)(63)(5,391)
Total other income (expense), net151 334 (173)1,033 
Income (Loss) before provision for income taxes47 (2,898)(236)(4,358)
Provision for income taxes(1)
(16)(2,597)(26)(11,330)
Net income (loss) from discontinued operations$31 $(5,495)$(262)$(15,688)
(1) Provision for income taxes is primarily a result of the formal dissolution of certain legal entities classified as discontinued operations.