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ASSETS HELD FOR SALE
 6 Months Ended
Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
ASSETS HELD FOR SALE ASSETS HELD FOR SALE
On November 8, 2023, Om of Medicine, LLC ("Om of Medicine"), a subsidiary of the Company, ceased operations at its retail dispensary located in Ann Arbor, Michigan. The assets were classified as held for sale as of June 30, 2024 and December 31, 2023 and did not meet the criteria for discontinued operations under ASC Subtopic 205-20. As of June 30, 2024, assets and liabilities related to Om of Medicine was $0.8 million and $1.0 million, respectively, which are presented separately on the consolidated balance sheet as of June 30, 2024.

In May 2023, the Company entered into an Asset Purchase Agreement to sell the assets related to Om of Medicine, which was amended in January 2024. The transaction has received regulatory approval, however closing is subject to standard final adjustments, which is expected within one year. In January 2024, the Company received confirmation of the legal dissolution of Om of Medicine, LLC.
DISCONTINUED OPERATIONS
During the fiscal quarter ended September 30, 2023, the Company ceased its cultivation and production operations in the state of California (together, the "California operations") as reported under the THC Cannabis segment. The Company concluded that the abandonment of its California operations represented a strategic shift and thus all assets and liabilities to the operations within the state of California were classified as discontinued operations. Long-lived assets related to the California operations ceased to be used as of September 30, 2023 and thus considered disposed of other than by sale as of September 30, 2023. The assets associated with the California operations were measured at the lower of their carrying amount or fair value less costs to sell. The Company does not have significant continuing involvement with the California operations outside of the litigation matters disclosed in Note 15.

Revenue and expenses, gains or losses relating to the discontinuation of California operations were eliminated from profit or loss from the Company’s continuing operations and are shown as a single line item in the consolidated statements of operations for all periods presented.
The operating results of the discontinued operations are summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
REVENUE
Revenue from sale of goods$— $3,436 $3 $7,467 
Real estate income— 85 — 151 
Total revenues— 3,521 3 7,618 
Cost of goods sold2 (8,651)(5)(15,326)
Gross profit2 (5,130)(2)(7,708)
OPERATING EXPENSES
Selling, general and administrative expenses(373)1,689 (272)3,393 
Depreciation and amortization— 74 — 147 
Total operating expenses(373)1,763 (272)3,540 
Income (loss) from operations375 (6,893)270 (11,248)
Other income (expense)
Interest expense— — — (32)
Other— 754 — 1,559 
Total other income (expense), net— 754 — 1,527 
Net income (loss) from discontinued operations before income taxes375 (6,139)270 (9,721)
Income tax expense— — — — 
Net income (loss) on discontinued operations$375 $(6,139)$270 $(9,721)
The carrying amounts of assets and liabilities in the disposal group are summarized as follows:
June 30, 2024December 31, 2023
Carrying amount of the assets included in discontinued operations:
Current assets:
Cash$4 $63 
Accounts receivable, net32 (49)
Other receivables108 16 
Inventory30 33 
Prepaid expenses and other assets35 — 
Total current assets (1)
209 63 
Intangible assets, net738 738 
Deposits14 14 
Total non-current assets (1)
752 752 
TOTAL ASSETS OF THE DISPOSAL GROUP$961 $815 
Carrying amount of the liabilities included in discontinued operations:
Current liabilities:
Accounts payable3,526 3,552 
Accrued expenses and other current liabilities4,756 4,752 
Taxes payable72 72 
Current portion of contract liabilities618 48 
Total current liabilities (1)
8,972 8,424 
Long term notes payable(1)5 
Long term accounts payable255 330 
Contract liabilities1,710 2,280 
Total non-current liabilities (1)
1,964 2,615 
TOTAL LIABILITIES OF THE DISPOSAL GROUP$10,936 $11,039 

(1)    The assets and liabilities of the disposal group are classified as current on the consolidated balance sheets as of June 30, 2024 and December 31, 2023 because the disposal had already occurred as of the reporting date.