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Discontinued Operations | 12 Months Ended
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Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On March 10, 2020, Travelzoo issued a press release announcing that it will exit its loss-making business in Asia Pacific. The decision supports the Company's strategy to focus on value creation for shareholders by focusing on growing the businesses in North America and Europe. The Asia Pacific business ceased operations as of March 31, 2020, except for the Company's Japan and Singapore units, which were held for sale. The Company classified Asia Pacific as discontinued operations at March 31, 2020. Prior periods have been reclassified to conform with the current presentation. The following table provides a summary of amounts included in discontinued operations for the years ended December 31, 2023 and 2022 (in thousands):
| Year Ended December 31,
| 2023 |  | 2022
Revenues | $ | — |  |  | $ | — |
Cost of revenues | — |  |  | — |
Gross profit | — |  |  | — |
Operating expenses: |  |  |
Sales and marketing | — |  |  | — |
Product development | — |  |  | — |
General and administrative | 12 |  |  | — |
Total operating expenses | 12 |  |  | — |
Loss from operations | (12) |  |  | — |
Other income (loss), net | 472 |  |  | (35) |
Income (loss) before income taxes | 460 |  |  | (35) |
Income tax expense | — |  |  | 24 |
Net income (loss) from discontinued operations | $ | 460 |  |  | $ | (59) |
On June 16, 2020, in connection with its Asia Pacific exit plan, the Company completed a sale of 100% of the outstanding capital stock of Travelzoo Japan to Mr. Hajime Suzuki (the “Japan Buyer”) for consideration of 1 Japanese Yen. The Company recognized a pre-tax loss of $128,000. T he parties also entered into a License Agreement, whereby Travelzoo Japan obtained rights to use the intellectual property of Travelzoo exclusively in Japan in exchange for quarterly royalty payments based on revenue over a 5-year term, with an option to renew. A n interest free loan was provided to the licensee for JPY 46.0 million (approximately $430,000), of which $133,000 was repaid in 2021 and the remaining repaid in 2023. The Company recognized royalties of $36,000 and $0 for its licensing arrangements from the licensee in Japan for the years ended December 31, 2023 and 2022. On August 24, 2020, the Company completed a sale of 100% of the outstanding capital stock of Travelzoo Singapore, to an unaffiliated entity, Finest Hotels Pty Ltd d/b/a Travelzoo (“AUS Buyer”), which is fully owned by Mr. Julian Rembrandt, the Company's former General Manager of Southeast Asia and Australia for consideration of 1 Singapore Dollar. The parties also entered into a License Agreement, whereby the AUS Buyer obta ined a license to use the intellectual property of Travelzoo exclusively in Australia, New Zealand and Singapore and non-exclusively in China and Hong Kong for quarterly royalty payments based upon revenue over a 5-year term, with an option to renew. The non-exclusive license in China and Hong Kong was terminated by Travelzoo. The Company recognized royalties of $35,000 and $25,000 for its licensing arrangements from AUS Buyer for the years ended December 31, 2023 and 2022, respectively. The following table presents information related to the major classes of assets and liabilities classified as assets and liabilities from discontinued operations in the Consolidated Balance Sheets (in thousands):
| December 31, 2023 |  | December 31, 2022
ASSETS |  |  |
Cash, cash equivalents and restricted cash | $ | 1 |  |  | $ | 10 |
Prepaid expenses and other | — |  |  | 1 |
Total assets from discontinued operations | $ | 1 |  |  | $ | 11 |
LIABILITIES |  |  |
Accounts payable | $ | — |  |  | $ | 403 |
Accrued expenses and other | — |  |  | 13 |
Income tax payable | 24 |  |  | 24 |
Deferred revenue | — |  |  | 12 |
Total liabilities from discontinued operations | $ | 24 |  |  | $ | 452 |
Net cash used in operating activities and investing activities for discontinued operations for the for the years ended December 31, 2023 and 2022 are as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022
Net cash used in operating activities | $ | (9) |  |  | $ | (21) |

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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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