CONTINGENCIES AND COMMITMENTS |
12 Months Ended |
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Dec. 31, 2023 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| CONTINGENCIES AND COMMITMENTS | CONTINGENCIES AND COMMITMENTS The Company is involved in various legal claims and actions arising in the normal course of the Company’s operations. Although the outcome of these claims cannot be predicted with certainty, the Company does not expect these matters to have a material adverse effect on the Company’s financial position, cash flows or results of operations.
Commitments
On July 1, 2023, an asset purchase agreement (the "APA") was entered into by and among (the Company) as guarantor, Clever Leaves Portugal Unipessoal, Lda. (the "Seller" or "Clever Leaves Portugal"), a wholly-owned subsidiary of the Company, and Terra Verde, Lda. (the "Purchaser"), a wholly-owned subsidiary of Curaleaf International, part of Curaleaf Holdings, Inc. Pursuant to the APA, the Purchaser agreed to acquire, and the Seller agreed to sell, certain laboratory and processing equipment
for the production of cannabinoid products, as well as informational rights to policies and procedures for the production and manufacture of such cannabinoids that the Seller used in its EU-GMP certified cannabis processing facility in Setubal, Portugal.
Under the terms of the AP A, the Company has provided a guarantee in case of malfunctioning of the equipment for a period of
12 months expiring July 2024. The total amount of the guarantee will not exceed, in any circumstances, €500 and undertakes the obligation of principal payor renouncing to the benefit of prior foreclosure of the Seller's assets. The Company considers the probability of requiring payment under the guarantee to be remote. Hence, no liabilities or expenses are recorded in the financial statements. The Company does not have any commitments to purchase raw materials at specific prices under any supplier contracts. The Company is committed to pay approximately $777 for the year 2024 insurance coverage. Additionally, see Note 10 for information on the Company's debt obligations.
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