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Discontinued Operations | 12 Months Ended
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Dec. 31, 2022
Discontinued Operations |
Discontinued Operations | Note 17– Discontinued Operations During the quarter ended December 31, 2022, we committed to a strategic shift in our business strategy for 2023 and beyond including the sale of 365 Cannabis and LCA, or the Discontinued Group. Subsequent to the sales of 365 Cannabis and LCA that were completed in January 2023, we will have no future involvement or relationships with these businesses. As a result of these actions, the assets and liabilities and results of operations of the Discontinued Group have been classified as held for sale and discontinued operations, respectively, for all periods presented. The following table presents the major classes of assets and liabilities of the Discontinued Group:
|  | As of December 31, |
|  | 2022 |  |  | 2021 |
Cash and restricted cash |  | $ | 305,500 |  |  | $ | 1,354,899 |
Accounts receivable, net |  |  | 112,444 |  |  |  | 530,086 |
Prepaid expenses & other current assets |  |  | 578,393 |  |  |  | 258,042 |
Fixed assets |  |  | 63,764 |  |  |  | 87,123 |
Capitalized software, net |  |  | 828,555 |  |  |  | 371,023 |
Intangible assets, net |  |  | 3,241,372 |  |  |  | 15,056,111 |
Goodwill |  |  | — |  |  |  | 14,098,384 |
Other noncurrent assets |  |  | — |  |  |  | 9,700 |
Total assets |  | $ | 5,130,028 |  |  | $ | 31,765,368 |
Accounts payable, accrued expenses and other current liabilities |  | $ | 1,034,426 |  |  | $ | 677,747 |
Deferred revenue |  |  | 994,713 |  |  |  | 2,672,019 |
Deferred revenue, noncurrent |  |  | 217,083 |  |  |  | 336,773 |
Total liabilities |  | $ | 2,246,222 |  |  | $ | 3,686,539 |
Current assets held for sale |  | $ | 5,130,028 |  |  | $ | 2,143,027 |
Noncurrent assets held for sale |  |  | — |  |  |  | 29,622,341 |
Total assets held for sale |  | $ | 5,130,028 |  |  | $ | 31,765,368 |
Current liabilities held for sale |  | $ | 2,246,222 |  |  | $ | 3,349,766 |
Noncurrent liabilities held for sale |  |  | — |  |  |  | 336,773 |
Total liabilities held for sale |  | $ | 2,246,222 |  |  | $ | 3,686,539 |
The following table summarizes the results of operations of the Discontinued Group:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
Revenue |  | $ | 9,453,309 |  |  | $ | 3,057,877 |
Cost of revenue |  |  | 2,418,322 |  |  |  | 685,603 |
Gross profit |  |  | 7,034,987 |  |  |  | 2,372,274 |
Research and development |  |  | 1,807,068 |  |  |  | 379,943 |
Sales and marketing |  |  | 4,166,545 |  |  |  | 1,399,908 |
General and administrative |  |  | 472,479 |  |  |  | 248,578 |
Depreciation and amortization |  |  | 2,212,438 |  |  |  | 560,599 |
Impairment of long-lived assets |  |  | 22,811,310 |  |  |  | 29,196 |
Changes in fair value of contingent consideration |  |  | (4,016,194 | ) |  |  | — |
Interest expense |  |  | 596 |  |  |  | 794 |
Loss from discontinued operations before income taxes |  |  | (20,419,255 | ) |  |  | (246,744 | )
Income tax benefit |  |  | (12,919 | ) |  |  | (1,500 | )
Net loss from discontinued operations, net of tax |  | $ | (20,432,174 | ) |  | $ | (248,244 | )
The $22.8 million impairments of long-lived assets for the year ended December 31, 2022 are attributable to goodwill ($12.5 million), intangible assets ($10.0 million) and capitalized software ($0.3 million). Of this total, $22.2 million was attributable to 365 Cannabis and $0.6 million to LCA. The impairments of long-lived assets for the year ended December 31, 2021 are fully attributable to goodwill of LCA. The Discontinued Group incurred capital expenditures for capitalized software assets of $1.1 million and $0.4 million for the years ended December 31, 2022 and 2021, respectively. Other than those attributable to the acquisition of 365 Cannabis in 2021 which are disclosed in Note 4, there were no material non-cash investing and financing activities attributable to the Discontinued Group for the years ended December 31, 2022 and 2021, respectively.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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