Discontinued Operations

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

On March 18, 2024, the Company discontinued the Sports Illustrated media business (the “SI Business”) that was operated under the Licensing Agreement with ABG-SI, LLC (“ABG”) dated June 14, 2019 (as amended to date, the “Licensing Agreement”). This discontinuation of the SI Business (i.e., discontinued operations) followed the termination of the Licensing Agreement by ABG on January 18, 2024. The last date of any obligation of the Company to perform under the Licensing Agreement was March 18, 2024. In connection with the termination, certain ABG Warrants vested.

On April 29, 2025, the ABG Group Legal Matters (as further described in Note 18) were resolved through a confidential settlement with outstanding liabilities being released by all sides. In connection with the settlement, all ABG Warrants were forfeited.

The table below sets forth the loss from discontinued operations:


	Years Ended December 31,
		2025		2024
Revenue (1)		$	45,107	$	22,159
Cost of revenue (2)		(1,367)		15,137
Gross profit (loss)		46,474		7,022
Operating expenses:
Selling and marketing (2)		(805)		12,358
General and administrative (3)		(48,971)		45,907
Depreciation and amortization		–		2,401
Loss on impairment of assets (4)		–		39,391
Total operating expenses (income)		(49,776)		100,057
Income (loss) from discontinued operations		96,250		(93,035)
Income tax provision		–		(8)
Net income (loss) from discontinued operations		$	96,250	$	(93,043)

(1)Revenue for the year ended December 31, 2025 includes the derecognition of SI business related liabilities of $45,107 for which the Company has no remaining obligations.

(2)Cost of revenue and selling and marking expenses for the year ended December 31, 2025, include adjustments to previously reported accounts payable that were settled for a reduced amount.

(3)General and administrative expenses for the year ended December 31, 2025, include the derecognition of SI business related liabilities, including a $45,000 termination fee liability, a $3,750 royalty fee liability and $221 of previously reported accounts payable that was settled for a reduced amount. General and administrative expenses for the year ended December 31, 2024, include a $45,000 termination fee liability.

(4)Loss on impairment of assets for the year ended December 31, 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 December 31,

2025

2024

Assets

Accounts receivable, net

–

Subscription acquisition costs, current portion

–

Prepayments and other current assets

–

Current assets from discontinued operations

–

Subscription acquisition costs, net of current portion

–

Acquired and other intangibles assets, net

–

Noncurrent assets from discontinued operations

–

Total assets from discontinued operations

–

Liabilities

Accounts payable

–

1,783

Accrued expenses and other

–

519

Subscription refund liability

–

423

Royalty fee liability (1)

–

3,750

Termination fee liability (1)

–

45,000

Subscription liability

–

44,684

Current/total liabilities from discontinued operations

–

96,159

Subscription liability, net of current portion

–

Noncurrent liabilities from discontinued operations

–

Total liabilities from discontinued operations

–

96,159

(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 24.

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


	Years Ended December 31,
	2025		2024
Cash flows from operating activities from discontinued operations
Net income (loss) from discontinued operations	$	96,250	$	(93,043)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of intangible assets	–		2,401
Loss on impairment of assets	–		39,391
Stock-based compensation	–		606
Bad debt expense	–		1,058
Change in operating assets and liabilities:
Accounts receivable, net	–		12,077
Subscription acquisition costs	–		6,131
Prepayments and other current assets	–		807
Accounts payable	(1,783)		(771)
Accrued expenses and other	(519)		(1,349)
Subscription refund liability	(423)		20
Subscription liability	(44,684)		(8,301)
Royalty fee liability	(3,750)		3,750
Termination fee liability	(45,000)		45,000
Net cash provided by operating activities from discontinued operations	$	91	$	7,777

Further details regarding legal matters in connection with the discontinued operations are provided under the heading ABG Group Legal Matters in Note 24, Commitments and Contingencies.