SUBSEQUENT EVENTS |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||
| Subsequent Events [Abstract] | |||||||
| SUBSEQUENT EVENTS |
In July 2024, the Company extinguished one of its acquisition-related promissory notes which had a principal balance of $3,750 as of June 30, 2024 and a maturity date of August 11, 2024. The promissory note was redeemed at 96 percent of the principal amount plus 50 percent of accrued and unpaid interest, resulting in a gain on extinguishment of $140.
As of June 30, 2024, the Acquisition Facility principal balance was $55,250 with a maturity date of December 2024. On July 1, 2024, the Company made a regularly scheduled principal payment of $2,437, reducing the principal balance to $52,813. On July 31, 2024, the Company refinanced its Acquisition Facility with a $4,313 cash payment and $48,500 in secured term loans from a syndicate of lenders, maturing in September 2026.
In July 2024, the state of Pennsylvania enacted legislation permitting medical cannabis businesses to deduct ordinary and necessary business expenses for state income tax purposes, which are disallowed under Internal Revenue Code Section 280E. This legislation is effective July 1, 2024, and applies to tax years beginning after December 31, 2023. As a result, the Company anticipates a reduction in state income tax expense beginning in fiscal year 2024. The Company estimates that this change will result in an annual state tax saving of approximately $2,400, based on its current expense levels and a one-time benefit of approximately $1,500.
In July 2024, the Company executed an agreement for the sale of one of its dispensaries at a sale price of $3,000. This sale is subject to regulatory approvals and customary closing conditions, and is expected to be completed within the next nine months from June 30, 2024.
|
||||||