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Discontinued operations
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued operations Discontinued operations
On April 17, 2024, the Company entered into the Purchase Agreement by and between the Company and GCI Holdings, which is wholly owned by a former consulting contractor of Global Cooling, for the sale of all of the issued and outstanding shares of common stock of Global Cooling to GCI Holdings. Upon the execution of the Purchase Agreement, the Global Cooling business is presented in the accompanying condensed financial statements as a discontinued operation for all periods presented.
As a condition of the Purchase Agreement, Global Cooling was required to have $7.0 million in cash on its balance sheet, of which, $6.7 million in cash was funded by the Company, and the Company was required to repay approximately $2.6 million of outstanding indebtedness of Global Cooling, and assume certain other liabilities of Global Cooling of $2.6 million. Following the execution of the Purchase Agreement, the divestiture of Global Cooling was consummated on April 17, 2024. The Company recognized a loss on disposal of Global Cooling, calculated as follows:
(In thousands)
Selling price: $1
$— 
Cash to Global Cooling funded by Company(6,652)
Costs to sell Global Cooling(1)
(582)
Negative selling price(7,234)
Global Cooling carrying basis as of April 17, 2024, inclusive of assumed liabilities(3,589)
Assumed liabilities: Accounts payable(2)
2,643 
Assumed liabilities: Debt(3)
2,596 
Global Cooling carrying basis as of April 17, 20241,650 
Release of Global Cooling currency translation adjustment(13)
Net loss on disposal$(8,897)
(1) Represents the costs incurred in connection with the divestiture of Global Cooling, including fees to be paid to the broker, attorneys, and other external parties.
(2) As a closing condition, the Company assumed certain accounts payable and accrued expenses from Global Cooling, totaling $0.5 million and $2.1 million, respectively.
(3) As a closing condition, the Company repaid the balance of the Global Cooling Amended Term Notes. For additional information on the terms of the Global Cooling Term Notes, see Note 13: Long-term debt.
In connection with the Company’s entry into the Purchase Agreement, the Company implemented a reduction in force (the “RIF”) related to the business of Global Cooling, which reduced the Company’s workforce by 47 employees (representing
approximately 11% of its full-time employees). The Company’s Board of Directors approved the RIF on March 29, 2024, and all affected employees were informed by April 18, 2024, following the execution of the Purchase Agreement. Additionally, the Company accelerated the unvested shares granted to both the employees impacted by the RIF and Global Cooling employees that remained with Global Cooling upon the closing of the GCI Divestiture. The Company recognized the following charges in connection with the RIF and stock compensation expense acceleration:
(In thousands)SeveranceStock CompensationTotal
RIF employee costs$291 $1,255 $1,546 
Former Global Cooling employees— 1,925 1,925 
Total employment related divestiture expenditures$291 $3,180 $3,471 

In addition, upon the closing of the Transaction, the Company and Global Cooling entered into a transition services agreement ("TSA"), pursuant to which the Company agreed to provide certain transition services to Global Cooling for up to 90 days following the date of the closing of the Transaction. The TSA has since expired pursuant to its terms on the stated expiration date.

The following table summarizes the major classes of assets and liabilities of discontinued operations, which are summarized separately in the condensed consolidated balance sheets:
April 17,December 31,
(In thousands)20242023
Cash and cash equivalents$275 $2,090 
Accounts receivable, net2,430 1,728 
Inventories9,152 11,248 
Prepaid expenses and other current assets379 303 
Total current assets, discontinued operations12,236 15,369 
Property and equipment, net153 146 
Long-term deposits and other assets4 4 
Total assets, discontinued operations12,393 15,519 
Accounts payable1,425 3,367 
Accrued expenses and other current liabilities911 1,637 
Warranty liability7,193 7,507 
Lease liabilities, operating, current portion242 263 
Lease liabilities, financing, current portion16 22 
Total current liabilities, discontinued operations9,787 12,796 
Lease liabilities, operating, long-term948 1,016 
Lease liabilities, financing, long-term8 11 
Total liabilities, discontinued operations$10,743 $13,823 
Global Cooling had no remaining balances as of September 30, 2024.
The key components of loss from discontinued operations were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Revenue$— $9,755 $7,157 $28,546 
Cost of revenue— 10,100 8,389 28,048 
Gross profit— (345)(1,232)498 
Operating expenses— (5,789)(9,418)(16,259)
Asset impairment charges— (7,175)— (7,175)
Other income (expense), net— (19)(25)(63)
Loss on disposal— — (8,897)— 
Loss before income taxes— (13,328)(19,572)(22,999)
Income tax expense— — (10)(3)
Loss from discontinued operations, net of income taxes$— $(13,328)$(19,582)$(23,002)
During the three and nine months ended September 30, 2024, Global Cooling did not incur material depreciation, amortization, capital expenditure, or other noncash related costs. For the three months ended September 30, 2023, Global Cooling incurred depreciation and capital expenditure costs of $0.1 million and $0.2 million, respectively. During the nine months ended September 30, 2023, Global Cooling incurred depreciation, amortization, and capital expenditure costs of $0.4 million, $0.1 million, and $0.7 million, respectively.
We do not anticipate incurring any material additional charges in connection with the sale of Global Cooling.