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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Net revenue $ 27,984 $ 35,264 $ 48,199 $ 70,143
Cost of goods sold 11,093 20,368 18,139 36,151
Gross profit 16,891 14,896 30,060 33,992
Operating expenses:        
Sales and distribution 15,162 20,557 28,376 40,783
Research and development 0 1,709 0 2,956
General and administrative 4,934 6,281 10,166 12,240
Impairment loss on intangibles 0 22,785 0 [1] 39,445
Total operating expenses 20,096 51,332 38,542 95,424
Operating loss (3,205) (36,436) (8,482) (61,432)
Interest expense, net 228 346 552 717
Change in fair value of warrant liability (52) (2,197) (569) (1,843)
Other expense, net 43 176 50 229
Loss before income taxes (3,424) (34,761) (8,515) (60,535)
Provision for income taxes 205 26 276 52
Net loss $ (3,629) $ (34,787) $ (8,791) $ (60,587)
Net loss per share, basic and diluted (in dollars per share) [2] $ (0.52) $ (5.37) $ (1.28) $ (9.41)
Weighted-average number of shares outstanding, basic and diluted (*) (in shares) [2] 6,973,218 6,483,931 6,881,648 6,439,658
[1] On March 20, 2023, the Company made certain leadership changes in our essential oil business resulting in a change in strategy and outlook for the business which will result in a reduced portfolio offering. This reduction in the portfolio will be impactful to our essential oil business's future revenues and profitability and as a result the Company made revisions to our internal forecasts. The Company concluded that this change was an interim triggering event for the three months ending March 31, 2023 indicating the carrying value of our essential oil business's long-lived assets including trademarks may not be recoverable. Accordingly, the Company performed an interim impairment test of the trademark and assessed the recoverability of the related intangible assets by using level 3 inputs and comparing the carrying value of an asset group to the net undiscounted cash flow expected to be generated. The recoverability test indicated that certain definite-live trademark intangible assets were impaired. The Company concluded the carrying value of the trademark exceeded its estimated fair value which was determined utilizing the relief-from-royalty method to determine discounted projected future cash flows which resulted in an impairment charge. The Company recorded an intangible impairment charge of $16.7 million in the three months ending March 31, 2023 within impairment loss on intangibles on the condensed consolidated statement of operations.
[2] The number of shares and per share amounts have been retroactively restated to reflect the one for twelve (1 for 12) reverse stock split, which was effective on March 22, 2024.