Disposals and Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposals and Discontinued Operations

Note 23: DISPOSALS AND DISCONTINUED OPERATIONS

On January 21, 2020, the Company sold two management companies that controlled two Arkansas cannabis licenses to a third party for $2,000. A gain of $2,000 is included in gain on sale of subsidiaries in the consolidated statements of operations. The entities sold had no operations through the sale date.

On March 20, 2020, the Company completed the divestiture of PHX Interactive LLC and control of Greens Goddess Inc. through a sale to a third party for $6,000 in cash. The Company paid a $348 fee to a lender in exchange for allowing the Company to sell the dispensary. This fee is recorded as a disposal cost and is netted with gains as part of gain on sale of subsidiaries in the Consolidated Statements of Operations. Revenue and expenses, gains or losses relating to the discontinuation of these operations have been eliminated from the profit or loss from the Company’s continuing operations and are shown as part of a single line item for net loss from discontinued operations in the consolidated statements of operations. 

The following sales of the Company’s dispensaries and management companies were recorded as gains on sale of subsidiaries in the consolidated statements of operations. Revenue and expenses, and gains or losses relating to the discontinuation of these operations have been eliminated from profit or loss from the Company’s continuing operations for all periods presented and are shown as part of a single line item in the consolidated statements of operations.

On May 7, 2020, the Company completed the sale of the Mission Pennsylvania II LLC dispensary to a third party for $10,550 cash.

On September 1, 2020, the Company completed the sale of the Company’s 79.5% interest in Arkansas Natural Products Management LLC, that manages an Arkansas dispensary. The Company received $1,384 in cash and a note receivable for $1,065 that was fully paid in 2021 On September 23, 2020, the Company completed the sale of one Maryland dispensary and two management companies that manage two additional Maryland dispensaries to a third party for $5,500 in cash.

On September 30, 2020, the Company completed the sale of the Company’s 80% interest in a Maryland management company that manages a Maryland dispensary. The buyer is the owner of the dispensary and paid $1,200 in cash.

The entities that were sold during the year ended December 31, 2020 were part of the THC Cannabis segment (Note 20). Below is a summary of the net income or loss from discontinued operations that is shown as a single line item for the year ended December 31, 2020: 

	Year ended December 31,
	2020
REVENUE	$	12,482
Cost of Goods Sold		(8,057	)
Gross profit		4,425
OPERATING EXPENSES
Selling and marketing expenses		3,899
Depreciation and amortization		472
Total operating expenses		4,371
Income (loss) from operations		54
Interest expense		(109	)
Gain on sale of subsidiaries		13,454
Net income (loss) before income taxes		13,399
Income tax expense		(412	)
Net income (loss) after income tax expense	$	12,987

Cash flows generated by the discontinued operations are reported as single line items in each section of the consolidated interim statements of cash flows and are summarized as follows:

	Year ended December 31,
	2020
Net cash provided by (used in) operating activities	$	(627	)
Net cash provided by (used in) investing activities		(1,679	)
Net cash provided by (used in) financing activities		3,503
Cash flows from discontinued operations	$	1,197