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Discontinued Operations (Tables) | 9 Months Ended
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Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Schedule of Discontinued Operations | The table below sets forth the loss from discontinued operations: Schedule of Discontinued Operations
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | ($ in thousands, except share data) |
Revenue |  | $ | 45 |  |  | $ | 26,422 |  |  | $ | 22,297 |  |  | $ | 74,118 |
Cost of revenue |  |  | 160 |  |  |  | 12,199 |  |  |  | 15,006 |  |  |  | 40,431 |
Gross profit (loss) |  |  | (115 | ) |  |  | 14,223 |  |  |  | 7,291 |  |  |  | 33,687 |
Operating expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 140 |  |  |  | 12,849 |  |  |  | 12,142 |  |  |  | 37,570 |
General and administrative (1) |  |  | 567 |  |  |  | 88 |  |  |  | 46,060 |  |  |  | 287 |
Depreciation and amortization |  |  | - |  |  |  | 3,671 |  |  |  | 2,401 |  |  |  | 11,011 |
Loss on impairment of assets (2) |  |  | - |  |  |  | - |  |  |  | 39,391 |  |  |  | - |
Total operating expenses |  |  | 707 |  |  |  | 16,608 |  |  |  | 99,994 |  |  |  | 48,868 |
Loss from discontinued operations |  |  | (822 | ) |  |  | (2,385 | ) |  |  | (92,703 | ) |  |  | (15,181 | )
Income tax provision |  |  | - |  |  |  | (9 | ) |  |  | (6 | ) |  |  | (23 | )
Net loss from discontinued operations |  | $ | (822 | ) |  | $ | (2,394 | ) |  | $ | (92,709 | ) |  | $ | (15,204 | )
(1) | General and administrative expenses for the nine months ended September 30, 2024, includes a $45,000 termination fee liability.
(2) | Loss on impairment of assets for the nine months ended September 30, 2024 of $39,391, includes $8,601 for the impairment of intangible assets and $30,790 for the impairment of subscription acquisition costs.
The table below sets forth the major classes of assets and liabilities of the discontinued operations:
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | As of |
|  | September 30, 2024 |  |  | December 31, 2023 |
Assets |  |  |  |  |  |
Accounts receivable, net |  | $ | 528 |  |  | $ | 13,135 |
Subscription acquisition costs, current portion |  |  | - |  |  |  | 29,706 |
Prepayments and other current assets |  |  | - |  |  |  | 807 |
Current assets from discontinued operations |  |  | 528 |  |  |  | 43,648 |
Subscription acquisition costs, net of current portion |  |  | - |  |  |  | 7,215 |
Acquired and other intangibles assets, net |  |  | - |  |  |  | 11,002 |
Noncurrent assets from discontinued operations |  |  | - |  |  |  | 18,217 |
Total assets from discontinued operations |  | $ | 528 |  |  | $ | 61,865 |
Liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,994 |  |  | $ | 2,554 |
Accrued expenses and other |  |  | 1,927 |  |  |  | 1,868 |
Subscription refund liability |  |  | 423 |  |  |  | 403 |
Royalty fee liability (1) |  |  | 3,750 |  |  |  | - |
Termination fee liability (1) |  |  | 45,000 |  |  |  | - |
Subscription liability, current portion |  |  | 45,284 |  |  |  | 42,848 |
Current liabilities from discontinued operations |  |  | 98,378 |  |  |  | 47,673 |
Subscription liability, net of current portion |  |  | - |  |  |  | 10,137 |
Noncurrent liabilities from discontinued operations |  |  | - |  |  |  | 10,137 |
Total liabilities from discontinued operations |  | $ | 98,378 |  |  | $ | 57,810 |
(1) | Further details related to the alleged and disputed royalty fee liability of $3,750 and termination fee liability of $45,000 are described under the heading ABG Group Legal Matters in Note 19.
The table below sets forth the cash flows of the discontinued operations:
|  | 2024 |  |  | 2023 |
|  | Nine Months Ended September 30, |
|  | 2024 |  |  | 2023 |
Cash flows from operating activities from discontinued operations |  |  |  |  |  |  |  |
Net loss from discontinued operations |  | $ | (92,709 | ) |  | $ | (15,204 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Amortization of intangible assets |  |  | 2,401 |  |  |  | 11,011 |
Loss on impairment of assets |  |  | 39,391 |  |  |  | - |
Stock-based compensation |  |  | 592 |  |  |  | 1,861 |
Bad debt expense |  |  | 561 |  |  |  | - |
Change in operating assets and liabilities: |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | 12,046 |  |  |  | 2,770 |
Subscription acquisition costs |  |  | 6,131 |  |  |  | (1,631 | )
Prepayments and other current assets |  |  | 807 |  |  |  | 422 |
Accounts payable |  |  | 3,190 |  |  |  | (3,739 | )
Accrued expenses and other |  |  | 59 |  |  |  | 707 |
Subscription refund liability |  |  | 20 |  |  |  | (371 | )
Subscription liability |  |  | (7,701 | ) |  |  | (276 | )
Termination fee liability |  |  | 45,000 |  |  |  | - |
Net cash provided by operating activities from discontinued operations |  | $ | 9,788 |  |  | $ | (4,450 | )

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