In 2024, we determined that the assets of our European businesses and our Coweta County, Georgia, business met the criteria for classification as held for sale. Additionally, we concluded that the ultimate disposal will represent a strategic shift that will have a major effect on the Company’s operations and financial results. As of June 30, 2026, the remaining assets, other than certain amounts reclassified to held and used, continue to meet the criteria for classification as held for sale. Refer to Note 1 – Summary of Significant Accounting Policies for further details. The historical results of the businesses that continue to meet the criteria for held for sale are classified as discontinued operations for all periods presented herein.

On February 15, 2025, we completed the sale of our land in Coweta County, Georgia, for $50.0 million and concurrently repaid a government grant of $20.0 million, which resulted in a $5.7 million gain for the six months ended June 30, 2025, which was recorded in other income, net in our unaudited condensed consolidated statement of operations and comprehensive loss. As of June 30, 2026 and December 31, 2025, $7.0 million of repayable government grants for the project were classified within current liabilities of discontinued operations on our unaudited condensed consolidated balance sheets.

Under the terms of the Transaction Agreement, we agreed to use reasonable efforts to dispose of, divest, transfer, or otherwise sell the assets and operations that constitute our European business within six months of December 23, 2024. Unless waived by the counterparty in writing, we expect to incur fees of $2.0 million per month until the business is disposed of. Additionally, if the total consideration received through the disposal is less than $45.0 million, we will owe fees equal to 19.9% of the shortfall.

As of June 30, 2026, certain of our European business assets remain unsold and continue to be held for sale. The historical results of this business are classified as discontinued operations in our unaudited condensed consolidated financial statements. Due to the terms of the Transaction Agreement that require us to sell our European business, we have accrued estimated fees of $41.2 million and $26.8 million as of June 30, 2026 and December 31, 2025, respectively.


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Costs and expenses
General and administrative	$	610	$	2,692	$	1,182	$	5,677
Restructuring charge	—		—		—		1,092
Share of net loss of equity method investee	—		—		—		425
Total costs and expenses	610		2,692		1,182		7,194

Loss from discontinued operations	(610)		(2,692)		(1,182)		(7,194)
Gain on disposal of property and equipment	—		—		—		5,675
Other (expense) income, net	(5,999)		382		(14,390)		(9,896)
Change in valuation allowance	—		1,585		(15,358)		2,230
Loss from discontinued operations before income taxes	(6,609)		(725)		(30,930)		(9,185)
Income tax benefit (expense)	—		—		—		(1,518)
Net loss from discontinued operations, net of tax	$	(6,609)	$	(725)	$	(30,930)	$	(10,703)

Allocated general corporate overhead costs do not meet the criteria to be presented within net loss from discontinued operations, net of tax, and were excluded from all figures presented in the table above.

Details of the assets and liabilities of discontinued operations classified as held for sale in our unaudited condensed consolidated balance sheets are as follows (in thousands):


	June 30, 2026		December 31, 2025
Other current assets	$	117	$	—
Property and equipment, net	6,614		18,046
Right-of-use asset under operating leases	498		1,372
Current assets of discontinued operations	$	7,229	$	19,418

Accounts payable	$	147	$	102
Accrued liabilities and other	42,479		28,035
Operating lease liability	12,404		12,401
Other current liabilities	7,000		7,000
Current liabilities of discontinued operations	$	62,030	$	47,538

The cash flows related to discontinued operations have not been segregated and are included in our unaudited condensed consolidated statements of cash flows. Cash flow and non-cash information for the discontinued operations are as follows (in thousands):


	Six months ended June 30,
	2026	2025
Capital expenditures	—	2,674
Proceeds from the return of property and equipment deposits	—	1,202
Change in valuation allowance	15,358	2,230