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Disposition and Held for Sale
3 Months Ended
Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Disposition and Held for Sale
Note 4. Disposition and Held for Sale
On March 13, 2024, we entered into definitive sale and purchase agreements to sell our fitness solutions to Jonas Software. The sale of North American Fitness closed simultaneously with signing. The sale of UK Fitness is subject to customary closing conditions and regulatory approval by the Financial Conduct Authority and is expected to close during the third quarter of 2024. During the three months ended March 31, 2024, we recognized a loss of $4.8 million related to the disposal of North American Fitness, which is included in loss on held for sale and impairments on our unaudited condensed consolidated statements of operations and comprehensive loss. During the three months ended March 31, 2024, we recognized a $3.4 million goodwill impairment charge representing the allocated goodwill to North American Fitness, which is included in loss on held for sale and impairments on the unaudited condensed consolidated statements of operations and comprehensive loss.
The UK Fitness disposal group met the held for sale criteria in the first quarter of 2024. As such, the assets and liabilities of the disposal group are classified as held for sale on our unaudited condensed consolidated balance sheets as of March 31, 2024 but did not qualify as discontinued operations as it did not represent a strategic shift that will have a material effect on the Company’s operations and financial results. During the three months ended March 31, 2024, we measured the assets and liabilities held for sale at fair value less costs to sell and recognized a loss of $2.6 million, which is included in loss on held for sale and impairments on our unaudited condensed consolidated statements of operations and comprehensive loss.
The components of assets and liabilities classified as held for sale on our condensed consolidated balance sheets as of March 31, 2024 were as follows:
March 31, 2024
(in thousands)
Assets:
Cash and cash equivalents$1,000 
Restricted cash1,930 
Accounts receivable, net166 
Prepaid expenses and other current assets147 
Property and equipment, net57 
Capitalized software, net2,022 
Other non-current assets910 
Intangible assets, net
6,012 
Goodwill
2,971 
Total assets15,215 
Valuation allowance
(2,619)
Assets held for sale$12,596 
Liabilities:
Accounts payable$292 
Accrued expenses and other2,753 
Deferred revenue269 
Other long-term liabilities2,460 
Liabilities held for sale5,774 
Currency translation adjustment
1,078 
Assets held for sale, net$7,900