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:

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.


Assets held for sale	Discontinued Operations		Held for Sale Entities		Total
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
Transferred out, net	(489)		(383)		(872)
Balance at June 30, 2026	$	2,809	$	—	$	2,809


Liabilities associated with assets held for sale	Discontinued Operations		Held for Sale Entities		Total
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
Transferred (out) in, net	(287)		—		(287)
Balance at June 30, 2026	$	6,786	$	—	$	6,786

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, 2026		December 31, 2025
Assets
Prepaid expenses and other current assets	$	8	$	278
Total current assets	8		278
Deferred tax asset(1)	2,801		3,020
Total non-current assets	2,801		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,
	2026		2025		2026		2025
Total revenues, net	$	(7)	$	3,935	$	1,404	$	7,318
Cost of goods sold	157		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), net	151		334		(173)		1,033
Income (Loss) before provision for income taxes	47		(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.