Clever Leaves Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

The Company conducted a comprehensive review of its production capacity for cannabis extracts. This evaluation led to the decision to scale back on certain extraction capacity and related assets, resulting in asset write-off charges. The Company also approved the shutdown of its cultivation activities in Portugal to preserve cash and improve operating margins. The Company has completed the cessation of its Portuguese flower cultivation, post-harvest processes, and manufacturing activities. The Company's post-harvest facility was sold in the third quarter of 2023. Subsequently, the Farm land was sold on January 31, 2024 which completed the wind-down operations in Portugal.

The company determined that shutdown of Portugal operations met the criteria to be classified as a discontinued operation, and, as a result, its historical financial results are reflected in the Company's financial statements as a discontinued operation and, assets and liabilities were classified as assets and liabilities held for sale.

To provide transparency and facilitate comparison, the table below presents the major line items constituting the pretax profit or loss of the discontinued operations for the twelve months ended December 31, 2023, and the twelve months ended December, 2022:


		Twelve Months Ended December 31,
		2023		2022
Revenue, net		$	551	$	1,390



Cost of sales		—		(4,276)
Gross profit (loss)		551		(2,886)
Expenses
General and administrative		1,422		3,985
Restructuring expenses		—		20,494
Depreciation and amortization		—		817
Total expenses		1,422		25,296

Loss from operations		(871)		(28,182)

Interest expense		44		30
Gain on sale of assets	—	(2,862)
Foreign exchange loss		49		167
Other expense (income), net		—		(18)

Net gain (loss)		$	1,898	$	(28,361)