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Discontinued Operations (Tables) | 3 Months Ended
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Mar. 31, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Schedule of Discontinued Operations | The table below sets forth the income (loss) from discontinued operations: Schedule of Discontinued Operations
|  | 2025 |  |  | 2024 |
|  | Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
|  | ($ in thousands, except share data) |
Revenue |  | $ | - |  |  | $ | 21,848 |
Cost of revenue (1) |  |  | (23 | ) |  |  | 13,981 |
Gross profit (loss) |  |  | 23 |  |  |  | 7,867 |
Operating expense |  |  |  |  |  |  |  |
Selling and marketing |  |  | - |  |  |  | 11,503 |
General and administrative (2) |  |  | - |  |  |  | 45,192 |
Depreciation and amortization |  |  | - |  |  |  | 2,401 |
Loss on impairment of assets (3) |  |  | - |  |  |  | 39,391 |
Total operating expenses |  |  | - |  |  |  | 98,487 |
Income (loss) from discontinued operations |  |  | 23 |  |  |  | (90,620 | )
Income tax provision |  |  | - |  |  |  | (18 | )
Net income (loss) from discontinued operations |  | $ | 23 |  |  | $ | (90,638 | )
(1) | Cost of revenue for the three months ended March 31, 2025, includes an adjustment to previously reported accounts payable that was settled for a reduced amount.
(2) | General and administrative expenses for the three months ended March 31, 2024, includes a $45,000 termination fee liability as described in Note 16.
(3) | Loss on impairment of assets for the three months ended March 31, 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 liabilities of the discontinued operations:
|  | March 31, 2025 |  |  | December 31, 2024 |
|  | As of |
|  | March 31, 2025 |  |  | December 31, 2024 |
Liabilities |  |  |  |  |  |
Accounts payable |  | $ | 1,680 |  |  | $ | 1,783 |
Accrued expenses and other |  |  | 519 |  |  |  | 519 |
Subscription refund liability |  |  | 423 |  |  |  | 423 |
Royalty fee liability (1) |  |  | 3,750 |  |  |  | 3,750 |
Termination fee liability (1) |  |  | 45,000 |  |  |  | 45,000 |
Subscription liability, current portion |  |  | 44,684 |  |  |  | 44,684 |
Current/total liabilities from discontinued operations |  | $ | 96,056 |  |  | $ | 96,159 |
(1) | Further details related to the royalty fee liability of $3,750 and termination fee liability of $45,000 are described under the heading ABG Group Legal Matters in Note 16.
The table below sets forth the cash flows of the discontinued operations:
|  | 2025 |  |  | 2024 |
|  | Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
Cash flows from operating activities from discontinued operations |  |  |  |  |  |  |  |
Net income (loss) from discontinued operations |  | $ | 23 |  |  | $ | (90,638 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Amortization of intangible assets |  |  | - |  |  |  | 2,401 |
Loss on impairment of assets |  |  | - |  |  |  | 39,391 |
Stock-based compensation |  |  | - |  |  |  | 538 |
Change in operating assets and liabilities: |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | - |  |  |  | 7,444 |
Subscription acquisition costs |  |  | - |  |  |  | 6,131 |
Prepayments and other current assets |  |  | - |  |  |  | 807 |
Accounts payable |  |  | (103 | ) |  |  | 2,654 |
Accrued expenses and other |  |  | - |  |  |  | 538 |
Subscription refund liability |  |  | - |  |  |  | 20 |
Subscription liability |  |  | - |  |  |  | (7,148 | )
Termination fee liability |  |  | - |  |  |  | 45,000 |
Net cash (used in) provided by operating activities from discontinued operations |  | $ | (80 | ) |  | $ | 7,138 |

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