3. Discontinued Operation

On November 1, 2023, the Company made the strategic decision to wind down and discontinue the operations of its Lyte reporting segment. The assets and liabilities of Lyte are classified as a discontinued operation and are presented separately in the consolidated balance sheets and consolidated statements of operations and comprehensive loss for the year ended December 31, 2023. We generally completed the wind down of the Lyte operations as of December 31, 2023. Therefore, there was no gain or loss on disposal.

On March 15, 2022, we entered into a lease agreement, in which we leased approximately 21,830 square feet in Round Rock, Texas. The term of the lease was five years and commenced in July 2022. The lease provided for initial base rent payments of approximately $27 per month, subject to escalations. In addition, we were responsible for payments equal to our proportionate share of operating expenses. During the third quarter of 2022, we recorded a right-of-use asset and corresponding lease liability of $1,545. In connection with the wind down of Lyte, we entered into a lease termination agreement in which the landlord agreed to terminate the lease for our Lyte facility effective November 30, 2023. We agreed to forfeit our security deposit of approximately $77 and we paid, on November 9, 2023, a termination fee of approximately $120. For the year ended December 31, 2023, we recorded rent expense of $352 related to the Lyte warehouse facility, which is included in discontinued operations in the consolidated statement of operations and comprehensive loss.