DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell or exit the business, the sale or exit is probable to occur during the next 12 months at a price or cost that is reasonable in relation to its current fair value and certain other criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized and updated each reporting period as appropriate.

The contract for Support.com's largest customer was not renewed upon expiration on December 31, 2022. As a result of this material change in the business, management and the board of directors made the determination to consider various alternatives for Support.com, including the disposition of assets. At December 31, 2022, the Company classified the Support.com business as held for sale and discontinued operations in the condensed consolidated financial statements as a result of its strategic shift to strictly focus on its cryptocurrency datacenter and power generation operations.

In January 2023, Greenidge completed the sale of a portion of the assets of Support.com for net proceeds of approximately $2.6 million and is continuing to evaluate alternatives for the remainder of the Support.com segment assets.

Major classes of assets and liabilities consist of the following:

$ in thousands	March 31, 2023		December 31, 2022
Assets:
Accounts receivable	$	1,526	$	3,996
Prepaid expenses and other current assets	1,028		1,253
Current assets held for sale	2,554		5,249
Property and equipment, net	533		743
Other assets	481		481
Long-term assets held for sale	1,014		1,224
Loss on classification to held for sale	(1,735)		—
Assets held for sale	1,833		6,473
Liabilities:
Accounts payable	130		191
Accrued expenses	1,482		3,351
Current liabilities held for sale	1,612		3,542
Other long-term liabilities	542		432
Long-term liabilities held for sale	542		432
Liabilities held for sale	$	2,154	$	3,974

The Company reasonably expects to close on the sale or exit of Support.com within one year; therefore, the assets and liabilities of Support.com have been presented as current at March 31, 2023 and December 31, 2022.

Financial results from discontinued operations consist of the following:

	Three Months Ended March 31,
$ in thousands	2023		2022
Revenue	$	2,121	$	8,500
Cost of revenue - services and other (exclusive of depreciation and amortization)	(1,894)		(4,071)
Depreciation and amortization	—		(325)
Selling, general and administrative	(1,217)		(2,583)
Merger and other costs	—		(213)
Gain on asset disposal	3,399		—
Loss on assets classified as held for sale	(1,735)		—
Other income, net	(3)		23
Pretax income from discontinued operations	671		1,331
Provision for income taxes	—		13
Income from discontinued operations, net of tax	$	671	$	1,318

The Company’s effective income tax rate from discontinued operations for the three months ended March 31, 2023 and 2022 was 0% and 1.0%, respectively , primarily due to foreign rate differences.