Sale of In-Store Marketing Business and Presentation as Discontinued Operations

3 Months Ended

Mar. 31, 2025

Sale of In-Store Marketing Business and Presentation as Discontinued Operations

Sale of In-Store Marketing Business and Presentation as Discontinued Operations

4. Sale of In-Store Marketing Business and Presentation as Discontinued Operations.

On August 3, 2023, the Company completed the sale of certain assets and certain liabilities relating to the Company’s In-Store Marketing Business for a price of $3,500,000 to TIMIBO LLC, an affiliate of Park Printing, Inc. (the “Buyer”) under an Asset Purchase Agreement (the “Purchase Agreement”). The results of the In-Store Marketing Business have been presented as discontinued operations and the related assets and liabilities have been classified as related to discontinued operations for all periods presented.

The carrying amounts of major classes of liabilities that were reclassified as related to discontinued operations on the condensed consolidated balance sheets were as follows:

	March 31, 2025		December 31, 2024
Current Liabilities:
Accrued sales tax	$	17,000	$	24,000
Other accrued liabilities		6,000		9,000
Current liabilities related to discontinued operations	$	23,000	$	33,000

For the three months ended March 31, 2025 and 2024, the Company recognized approximately $10,000 and $72,000, respectively, of benefit in sales, general and administrative expense of discontinued operations from the reduction in the accrual for sales tax due to the expiration of the statute of limitations.