On July 22, 2024, the Company announced a strategic restructuring plan focused on long-term profitability and advancing growth initiatives in key areas of its Cultivation and Gardening segment such as its proprietary brands, commercial sales, and e-commerce business. The restructuring plan primarily included reductions in cost structure by closing and consolidating 12 redundant or underperforming retail locations, workforce reductions, and other operational improvements in inventory management, sales and marketing, and administrative activities.

The Company substantially completed its restructuring activities and had no remaining liability associated with restructuring costs as of March 31, 2025. The Company incurred no costs related to restructuring activities during the three and six months ended June 30, 2026 and does not expect to incur significant additional restructuring and restructuring-related costs in future periods. Overall, the Company incurred aggregate restructuring and restructuring-related costs of $3.5 million, of which $1.1 million were incurred during the six months ended June 30, 2025. These costs are presented on the Condensed Consolidated Statements of Operations in the following table.


	Six Months Ended June 30,
	2025
Cultivation and Gardening segment:


Store operations and other operational expenses (1)	765
Restructuring costs in segment income from operations	(765)
Corporate expenses:
Selling, general, and administrative (2)	376


Total restructuring and restructuring-related charges	$	(1,141)

(1) Costs consist primarily of property and equipment disposals and lease contract termination costs for previously closed retail locations
(2) Costs consist of corporate operational and administrative contract terminations