Annual report [Section 13 and 15(d), not S-K Item 405]

Property, Plant, and Equipment

v3.25.1
Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment
Note 6: Property and Equipment
The Company’s property and equipment balances consisted of the following as of:
December 31,
2024 2023
(in thousands)
Leasehold improvements $ 2,332  $ 2,933 
Furniture & fixtures 1,106  1,165 
Computer equipment & software 7,060  3,699 
Medical equipment 1,082  1,106 
Software (development in process) 343  3,877 
Vehicles 659  654 
Other —  33 
12,582  13,467 
Less: accumulated depreciation (6,848) (4,781)
Property and equipment, net $ 5,734  $ 8,686 
Total depreciation of property and equipment recognized on the consolidated statements of operations was $2.4 million and $2.3 million for the years ended December 31, 2024 and 2023, respectively.
Asset Sale
On November 30, 2024, the Company and certain of its subsidiaries (the “Sellers”) entered into an asset purchase agreement with certain entities affiliated with an entity in which CPF, the Company’s principal stockholder, has an ownership interest (the “Buyers”), which was amended on December 30, 2024, effective as of December 5, 2024 (as amended, the “Florida Asset Purchase Agreement”). Pursuant to the Florida Asset Purchase Agreement, the Sellers sold to the Buyers all of the assets, clinical and non-clinical, exclusively or primarily used by the Company’s MA-related business operated out of Eagle Park, Florida (the “Florida Assets”) on a cash-free, debt-free basis for a purchase price of approximately $15.0 million less a $0.3 million working capital adjustment, subject to further adjustment, and an adjustment for certain payment obligations totaling $0.2 million. The asset sale closed on November 30, 2024 simultaneously with the execution of the asset purchase agreement. The Company recognized a $13.3 million net gain on asset sale on the consolidated statement of operations for the year ended December 31, 2024.
The major classes of assets and liabilities disposed of as part of the Florida Assets sale are summarized as follows (in thousands):
Assets:
Prepaid expenses and other current assets $ 25 
Property and equipment, net 41
Intangible assets, net 232
Other long-term assets 1,202 
Total assets disposed $ 1,500 
Liabilities:
Operating lease liability $ 243 
Total liabilities disposed $ 243 
Net assets disposed
 $ 1,257 
The Company expects to close on the sale of the remaining Florida assets during the first half of fiscal year 2025. As of December 31, 2024, the Company determined that the carrying value of the assets was less than the fair value and a loss on impairment of assets held for sale was recognized on the consolidated statement of operations for the year ended December 31, 2024. The fair value was determined based on a quoted market price less costs to sell. Net assets classified as
held for sale for the Company’s remaining Florida operations are summarized as follows as of December 31, 2024 (in thousands):
Assets:
Property and equipment, net $ 571 
Intangible assets, net 7,576 
Other long-term assets 314 
Impairment (8,058)
Total assets $ 403 
Liabilities:
Accrued expenses and other current liabilities $ 56 
Operating lease liability 297 
Total liabilities $ 353 
Net assets $ 50