Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The table below sets forth the loss from discontinued operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
	($ in thousands, except share data)
Revenue	$	404		$	24,734		$	22,252		$	47,696
Cost of revenue		865			16,287			14,846			28,232
Gross profit (loss)		(461	)		8,447			7,406			19,464
Operating expense
Selling and marketing		499			12,599			12,002			24,721
General and administrative (1)		301			121			45,493			199
Depreciation and amortization		-			3,670			2,401			7,340
Loss on impairment of assets (2)		-			-			39,391			-
Total operating expenses		800			16,390			99,287			32,260
Loss from discontinued operations		(1,261	)		(7,943	)		(91,881	)		(12,796	)
Income tax benefit		12			(14	)		(6	)		(14	)
Net loss from discontinued operations	$	(1,249	)	$	(7,957	)	$	(91,887	)	$	(12,810	)

(1)	General and administrative expenses for the six months ended June 30, 2024, includes a $45,000 termination fee liability.
(2)	Loss on impairment of assets for the six months ended June 30, 2024 of $39,391, includes $8,601 for the impairment of intangible assets and $30,790 for the impairment of subscription acquisition costs.

The table below sets forth the major classes of assets and liabilities of the discontinued operations:

	As of
	June 30, 2024		December 31, 2023
Assets
Accounts receivable, net	$	1,014	$	13,135
Subscription acquisition costs, current portion		-		29,706
Prepayments and other current assets		-		807
Current assets from discontinued operations		1,014		43,648
Subscription acquisition costs, net of current portion		-		7,215
Acquired and other intangibles assets, net		-		11,002
Noncurrent assets from discontinued operations		-		18,217
Total assets from discontinued operations	$	1,014	$	61,865
Liabilities
Accounts payable	$	1,735	$	2,554
Accrued expenses and other		1,665		1,868
Subscription refund liability		423		403
Royalty fee liability(1)		3,750		-
Termination fee liability(1)		45,000		-
Subscription liability, current portion		44,943		42,848
Current liabilities from discontinued operations		97,516		47,673
Subscription liability, net of current portion		-		10,137
Noncurrent liabilities from discontinued operations		-		10,137
Total liabilities from discontinued operations	$	97,516	$	57,810

⁽¹⁾ Further details related to the alleged and disputed royalty fee liability of $3,750 and termination fee liability of $45,000 are described under the heading ABG Group Legal Matters in Note 19.

The table below sets forth the cash flows of the discontinued operations:

	Six Months Ended June 30,
	2024			2023
Cash flows from operating activities from discontinued operations
Net loss from discontinued operations	$	(91,887	)	$	(12,810	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of intangible assets		2,401			7,340
Loss on impairment of assets		39,391			-
Stock-based compensation		564			1,261
Change in operating assets and liabilities:
Accounts receivable, net		12,121			2,059
Subscription acquisition costs		6,131			(7,273	)
Prepayments and other current assets		807			836
Accounts payable		2,931			1,423
Accrued expenses and other		(203	)		1,482
Subscription refund liability		20			45
Subscription liability		(8,042	)		5,976
Termination fee liability		45,000			-
Net cash provided by operating activities from discontinued operations	$	9,234		$	339