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Discontinued Operations | 6 Months Ended
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Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations In the second quarter of 2023, the Company exited its then-existing U.S. hemp-derived cannabinoid product operations. Accordingly, the net loss of the U.S. operations for the three and six months ended June 30, 2023 are reported separately as loss from discontinued operations on the condensed consolidated statements of net loss and comprehensive income (loss). There was no activity in discontinued operations for the three and six months ended June 30, 2024. The following table presents the major components comprising loss from discontinued operations in the condensed consolidated statements of operations for the three and six months ended June 30, 2023:
|  |  |  |  | Three months ended June 30, |  |  |  | Six months ended June 30,
|  |  |  |  |  |  | 2023
Net revenue |  |  |  |  |  |  | $ | 380 |  |  |  |  | $ | 1,029 |
Cost of sales |  |  |  |  |  |  | 848 |  |  |  |  | 2,044 |
Inventory write-down |  |  |  |  |  |  | 839 |  |  |  |  | 839 |
Gross profit |  |  |  |  |  |  | (1,307) |  |  |  |  | (1,854) |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  |  |  |  |  | 387 |  |  |  |  | 518 |
Research and development |  |  |  |  |  |  | 18 |  |  |  |  | 20 |
General and administrative |  |  |  |  |  |  | 213 |  |  |  |  | 736 |
Restructuring costs |  |  |  |  |  |  | 534 |  |  |  |  | 534 |
Share-based compensation |  |  |  |  |  |  | 5 |  |  |  |  | 21 |
Depreciation and amortization |  |  |  |  |  |  | 5 |  |  |  |  | 13 |
Impairment loss on long-lived assets(i) |  |  |  |  |  |  | 205 |  |  |  |  | 205 |
Total operating expenses |  |  |  |  |  |  | 1,367 |  |  |  |  | 2,047 |
Interest income |  |  |  |  |  |  | 3 |  |  |  |  | 8 |
Other, net(ii) |  |  |  |  |  |  | (163) |  |  |  |  | (163) |
Total other income (loss) |  |  |  |  |  |  | (160) |  |  |  |  | (155) |
Loss before income taxes |  |  |  |  |  |  | (2,834) |  |  |  |  | (4,056) |
Income tax expense (benefit) |  |  |  |  |  |  | — |  |  |  |  | — |
Net loss from discontinued operations |  |  |  |  |  |  | $ | (2,834) |  |  |  |  | $ | (4,056) |
(i)During the three and six months ended June 30, 2023, as a result of the exit of the U.S. operations, the Company recognized an impairment charge of $205 related to the right-of-use lease assets associated with the Company’s former U.S. manufacturing facility in Los Angeles, California. (ii)For the three and six months ended June 30, 2023, Other, net related to loss on disposal of assets that were part of the U.S. operations. The following tables present the Company’s discontinued operations revenue by major product category:
| Three months ended June 30, |  | Six months ended June 30, |  |  |  |
| 2023 |  |  |  |
Cannabis extracts | 380 |  |  | 1,029 |  |  |  |  |
Net revenue | $ | 380 |  |  | $ | 1,029 |  |  |  |  |
The following tables summarize the Company’s discontinued operations restructuring activity for the three and six months ended June 30, 2023:
| Accrual as of April 1, 2023 |  | Expenses |  | Payments/Write-offs |  |  |  | Accrual as of June 30, 2023
Employee Termination Benefits | $ | — |  |  | $ | 442 |  |  | $ | (223) |  |  |  |  | $ | 219 |
Other Restructuring Costs | — |  |  | 92 |  |  | — |  |  |  |  | 92 |
Total | $ | — |  |  | $ | 534 |  |  | $ | (223) |  |  |  |  | $ | 311 |
| Accrual as of January 1, 2023 |  | Expenses |  | Payments/Write-offs |  |  |  | Accrual as of June 30, 2023
Employee Termination Benefits | $ | — |  |  | $ | 442 |  |  | $ | (223) |  |  |  |  | $ | 219 |
Other Restructuring Costs | — |  |  | 92 |  |  | — |  |  |  |  | 92 |
Total | $ | — |  |  | $ | 534 |  |  | $ | (223) |  |  |  |  | $ | 311 |
The Company had no assets or liabilities presented in the condensed consolidated balance sheets related to its discontinued operations as of both June 30, 2024 and December 31, 2023. For the six months ended June 30, 2024, there were no purchases of property plant and equipment related to discontinued operations. For the six months ended June 30, 2023, purchases of property plant and equipment related to discontinued operations were $67.

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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 -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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