DISCONTINUED OPERATIONS

12 Months Ended

Dec. 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 the business, the sale is probable to occur during the next 12 months at a price 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. As of December 31, 2022, the Company classified the Support.com business as held for sale and discontinued operations in these 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. In June 2023, the Company entered into a purchase and sale agreement with third parties in order to sell certain remaining assets and liabilities, including the transfer of remaining customer contracts, for net proceeds of approximately $0.8 million. The Company has ended all Support.com operations as of December 31, 2023; therefore, the remaining assets and liabilities of Support.com have been presented as current at December 31, 2023 and December 31, 2022. The remaining assets and liabilities consist primarily of remaining prepaid expenses and refundable deposits, payables and accrued expenses associated with the closing of operations and foreign tax liabilities.

Major classes of assets and liabilities consist of the following:

	As of December 31,
$ in thousands	2023		2022
Assets:
Accounts receivable	$	—	$	3,996
Prepaid expenses and other current assets	47		1,253
Current assets held for sale	47		5,249
Property and equipment	—		743
Other assets	454		481
Long-term assets held for sale	454		1,224
Loss on classification to held for sale	(501)		—
Assets held for sale	—		6,473
Liabilities:
Accounts payable	21		191
Accrued expenses	462		3,351
Current liabilities held for sale	483		3,542
Other long-term liabilities	—		432
Long-term liabilities held for sale	—		432
Liabilities held for sale	483		3,974

Financial results from discontinued operations consist of the following:

	For the Year Ended December 31,
$ in thousands	2023		2022
Revenue	$	4,223	$	31,464
Cost of revenue - services and other (exclusive of depreciation and amortization)	(4,436)		(14,791)
Depreciation and amortization	—		(1,298)
Selling, general and administrative	(3,388)		(9,852)
Merger and other costs	(684)		(1,343)
Gain on asset disposal	4,162		—
Loss on assets classified as held for sale	(501)		—
Goodwill and intangibles asset impairment charge	—		(5,672)
Other (loss) income, net	(179)		353
Pretax loss of discontinued operations	(803)		(1,139)
(Benefit) Provision for income taxes	(332)		188
Loss from discontinued operations, net of tax	$	(471)	$	(1,327)

The Company’s effective income tax rate from discontinued operations for the years ended December 31, 2023 and 2022 was 0% and (16.5)%, respectively, primarily due to goodwill impairment and nondeductible transaction costs.