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ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

23. ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

 

As part of its new strategy with a Morocco and soft wheat focus, the Company initiated in November 2024 a plan for the potential disposal of several assets and businesses. As of December 31, 2024, the Company concluded that the following pending sale transactions met the criteria of classification as held for sale in accordance with Subtopic 205-20 and 360-10:

 

-All long-term assets belonging to a durum wheat mill with a capacity of 240 tons per day, located in Casablanca,

 

-A wholly owned subsidiary operating in logistic activities.

 

In January 2025, the Company entered into an agreement for the sale of these two items for total consideration of $29,000. The Company expects to finalize these transactions before the end of May 2025.

 

 

FORAFRIC GLOBAL PLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

The following table presents a summary of the carrying amounts of major classes of assets and liabilities classified as held for sale:

 

   2024   2023 
   December 31, 
   2024   2023 
   (in thousands) 
Carrying amounts of major classes of assets included as part of discontinued operations:          
Property, plant, and equipment, net  $6,685   $7,066 
Goodwill   4,380    4,477 
Total assets held for sale, current assets  $11,065   $11,543 
           
Carrying amounts of major classes of assets not included as part of discontinued operations:          
Cash and cash equivalents  $-   $23 
Accounts receivable, net   139    13 
Prepaid expenses and other current assets   119    249 
Property, plant, and equipment, net   2,439    2,598 
Right-of-use assets   107    121 
Other assets, noncurrent   4    4 
Total assets held for sale, current assets  $2,808   $3,008 
           
Total assets held for sale  $13,873   $14,551 
           
Carrying amounts of major classes of liabilities included as part of discontinued operations:          
Deferred tax liabilities  $404   $443 
Total liabilities held for sale, current liabilities  $404   $443 
           
Carrying amounts of major classes of liabilities not included as part of discontinued operations:          
Lines of credit – working capital  $209   $- 
Accounts payable   187    247 
Accrued expenses   514    512 
Current portion of long-term debt   23    22 
Long-term debt   63    88 
Deferred tax liabilities, net   174    218 
Total liabilities held for sale, current liabilities  $1,170   $1,087 
           
Total liabilities held for sale  $1,574   $1,530 

 

The following table presents the major line items constituting pretax profit (loss) of discontinued operations:

 

   2024   2023   2022 
   December 31, 
   2024   2023   2022 
   (in thousands) 
Revenues  $11,866   $3,522   $5,840 
Cost of sales   (9,045)   (1,461)   (5,675)
Selling, general and administrative expenses   (2,264)   (2,170)   (3,862)
Interest expense   (521)   (538)   (569)
Foreign Exchange loss   (3)   (5)   (5)
Total pretax profit (loss) of discontinued operations  $33   $(652)  $(4,271)

 

 

FORAFRIC GLOBAL PLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

Cash and cash equivalents, as reported in the consolidated statements of cash flows, are reconciled to the balance sheet as follows:

 

   2024   2023 
   December 31, 
   2024   2023 
   (in thousands) 
Cash and cash equivalents  $12,231   $23,998 
Cash and cash equivalents in held-for-sale assets   -    23 
Amounts reported in the consolidated statements of cash flows  $12,231   $24,021