Annual report pursuant to Section 13 and 15(d)

Discontinued Operation

v3.24.0.1
Discontinued Operation
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operation 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 classified as a discontinued operation of Lyte are presented separately in the consolidated balance sheets and consolidated statements of operations and comprehensive loss for the years ended December 31, 2023 and 2022 are presented as a discontinued operation. We generally completed the wind down of the Lyte operations as of December 31, 2023. Therefore, there was no gain or loss on disposal.
Assets and liabilities of the Lyte discontinued operation included the following:
December 31,
2023		 December 31,
2022
Accounts receivable, net $ 28  $ 123 
Inventory —  2,780 
Prepaid expenses and other current assets —  425 
Current assets of discontinued operation 28  3,328 
Property and equipment, net —  29 
Goodwill —  5,347 
Intangible assets, net —  2,524 
Right-of-use asset —  1,411 
Other assets —  77 
Non-current assets of discontinued operation —  9,388 
Accounts payable 183  421 
Accrued expenses 22  154 
Deferred revenue —  1,373 
Lease liability —  258 
Current liabilities of discontinued operation 205  2,206 
Lease liability —  1,175 
Non-current liability of discontinued operation $ —  $ 1,175 
A breakdown of the Lyte discontinued operation in the consolidated statements of operations and comprehensive loss are set forth:
Year Ended December 31,
2023 2022
Net revenues $ 7,567  $ 15,273 
Cost of revenues 8,470  13,706 
Gross profit (903) 1,567 
Operating expenses:
Sales and marketing 812  2,700 
General and administrative 1,867  2,277 
Impairment of goodwill and intangible asset 7,371  2,061 
Total operating expenses 10,050  7,038 
Operating loss (10,953) (5,471)
Other expense (income) —  2 
Total other expense —  2 
Net loss from discontinued operation $ (10,953) $ (5,469)
On March 15, 2022, we entered into a lease agreement, in which we lease 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 years ended December 31, 2023 and 2022, we recorded rent expense of $352 and $176, respectively, related to the Lyte warehouse facility, which is included in discontinued operations in the consolidated statement of operations and comprehensive loss.