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DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS
NOTE 9. HELD FOR SALE ASSETS

Held for sale assets primarily consists of property and are recorded in other current assets on the consolidated balance sheets. The following table outlines the changes in held for sales assets, December 31:

20242023
(in thousands)
Balance, beginning of year
$15,580 $14,521 
Assets moved to held for sale 10,568 18,694 
Non-cash settlement — (2,481)
Impairments(1,207)(2,810)
Assets sold (6,612)(12,344)
Balance, end of year
$18,329 $15,580 
NOTE 23. DISCONTINUED OPERATIONS

Discontinued operations consists of our exited operations in Massachusetts and Nevada. The assets and liabilities associated with discontinued operations consisted of the following as of December 31:
20242023
(in thousands)
Assets associated with discontinued operations
Cash$— $301 
Accounts receivable, net— 841 
Prepaid expenses
868 816 
Other assets1,980 2,010 
Total assets associated with discontinued operations$2,848 $3,968 
Liabilities associated with discontinued operations
Accounts payable and accrued liabilities$86 $530 
Operating lease liabilities - current portion241 165 
Finance lease liabilities - current portion334 291 
Construction finance liability - current portion2,468 2,003 
Operating lease liabilities15,125 15,332 
Finance lease liabilities1,729 2,048 
Construction finance liability21,699 24,167 
Other long-term liabilities7 6 
Total liabilities associated with discontinued operations$41,689 $44,542 
The following table summarizes the Company's net loss from discontinued operations for the years ended December 31. The gain and loss resulting from the forgiveness of intercompany payables was eliminated in consolidation.

202420232022
(in thousands)
Revenue$— $10,590 $24,634 
Cost of goods sold— 29,843 37,897 
Gross margin— (19,253)(13,263)
Expenses:
Operating expenses2,070 7,522 13,821 
Impairment and disposal of long-lived assets, net— 69,480 49,130 
Total expenses2,070 77,002 62,951 
Loss from operations(2,070)(96,255)(76,214)
Other (expense) income:
Other expense, net (1)
(3,632)(5,087)(6,118)
Total other expense, net(3,632)(5,087)(6,118)
Loss before provision for income taxes(5,702)(101,342)(82,332)
Income tax benefit— (4,101)(12,223)
Net loss from discontinued operations, net of taxes(5,702)(97,241)(70,109)
Less: net loss attributable to non-controlling interest from discontinued operations
— (1,193)(2,669)
Net loss from discontinued operations excluding non-controlling interest$(5,702)$(96,048)$(67,440)
(1)Other expense, net primarily consists of interest expense on the construction finance liability and operating lease liabilities associated with our discontinued operations

The consolidated statements of cash flows includes continuing operations and discontinued operations. The following table summarizes the depreciation of long-lived assets, amortization of long-lived assets, loss on impairment of long-lived assets, and capital expenditures of discontinued operations for the prior years ended December 31 as the activity in 2024 was nominal:
20232022
(in thousands)
Depreciation and amortization$3,798 $10,787 
Purchases of property and equipment67 844 
Loss on impairment and disposal of long-lived assets69,480 49,130 
Other noncash investing and financing activities
Noncash partial extinguishment of construction finance liability$18,486 $— 

As a result of the Company's exit from the Massachusetts market in the second quarter of 2023, the Company performed a lease term reassessment for the Massachusetts related failed sale-leaseback financing arrangement due to lease renewals previously included in the lease term being excluded as of the Massachusetts exit. The Company concluded the failed sale-leaseback accounting conclusion is maintained. The Company recognized a non-cash gain on partial extinguishment of $18.5 million as a result of the lease term reassessment, which was recorded to net loss from discontinued operations, net of taxes.
Future minimum lease payments for the construction finance liability associated with discontinued operations as of December 31, 2024, are as follows:
Year(in thousands)
2025$5,619 
20265,788 
20275,961 
20286,140 
20296,324 
Thereafter5,963 
Total future payments35,795 
Less: Interest(11,628)
Total present value of minimum payments24,167 
Construction finance liabilities - current portion(2,468)
Construction finance liabilities$21,699 

During the year ended December 31, 2022, the Company exited Nevada and recorded a loss on disposal of operating right of use assets of $14.0 million, which was recorded in net loss from discontinued operations on the consolidated statements of operations.

Future minimum lease payments under non-cancellable leases associated with discontinued operations as of December 31, 2024 are as follows:

Operating
Leases 		Finance
Leases 		Total
Leases
Year(in thousands)
2025$1,798 $509 $2,307 
20261,859 476 2,335 
20271,922 377 2,299 
20281,979 389 2,368 
20291,996 400 2,396 
Thereafter21,515 453 21,968 
Total undiscounted lease liabilities31,069 2,604 33,673 
Less: Interest(15,703)(541)(16,244)
Total present value of minimum lease payments15,366 2,063 17,429 
Lease liabilities - current portion(241)(334)(575)
Lease liabilities$15,125 $1,729 $16,854