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 net income from discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss. The entities sold had no operation through the sale date.

On March 20, 2020, the Company completed the divestiture of PHX Interactive LLC and 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 net income from discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss. 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 net income from discontinued operations in the condensed consolidated interim statements of operations and comprehensive loss.

Between April 1, 2020 and September 30, 2020, the Company completed the sale of dispensaries in Pennsylvania, Maryland, and Arkansas, and of management companies that control three additional dispensaries in Maryland. Revenue and expenses from these operations have been eliminated from the loss from the Company’s continuing operations for the three months ended March 31, 2020 and are shown as part of net income from discontinued operations in the condensed consolidated interim statements of operations and comprehensive loss.

The entities that were sold during the six months ended June 30, 2021 and 2020 were part of the THC Cannabis segment (Note 14). Below is a summary of the net income or loss from discontinued operations that is shown as a single line item for the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
REVENUE	$	—	$	4,423		$	—	$	9,421
Cost of goods sold		—		(2,791	)		—		(6,107	)
Gross profit		—		1,632			—		3,314
OPERATING EXPENSES
Selling and marketing expenses		—		1,270			—		3,007
Depreciation and amortization		—		—			—		353
Gain on sale of subidiary		—		(9,559	)		—		(11,211	)
Total operating (income) expenses		—		(8,289	)		—		(7,851	)
Income from operations		—		9,921			—		11,165
Interest expense		—		(42	)		—		(41	)
Net income before income taxes		—		9,879			—		11,124
Income tax expense		—		(39	)		—		(412	)
Net income after income tax expense	$	—	$	9,840		$	—	$	10,712

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

	Six Months Ended June 30,
	2021		2020
Net cash used in operating activities	$	—	$	7,107
Net cash used in investing activities		—		(59	)
Net cash provided by financing activities		—		—
Cash flows from discontinued operations	$	—	$	7,048