OTHER OPERATING EXPENSES, NET

12 Months Ended

Dec. 31, 2022

OTHER OPERATING EXPENSES, NET [Abstract]

OTHER OPERATING EXPENSES, NET

NOTE 19. – OTHER OPERATING EXPENSES, NET

The components of “Other operating expenses, net” were as follows:

	Year Ended
	December 31,
	2022		2021
Grass Valley fire:
Fixed asset write-offs	$	5,550	$	-
Inventory charges		3,998		-
Compensation & benefits		195		-
Professional services		36		-
Lease obligations		20		-
Insurance recoveries		(5,000)		-
Total Grass Valley fire		4,799		-
Acquisition costs		1,046		-
Impairment of intangible assets		1,488		78
Impairment of inventory		237		-
(Gain) loss on sale or disposal of property, plant and equipment		(368)		-
Total other operating expenses, net	$	7,202	$	78

Grass Valley Fire

In November 2022, there was a fire at our Grass Valley manufacturing facility in Oregon, which manufactures bulk ingredients, primarily CBD isolate and distillate.

We recognized fixed asset write-offs and inventory charges of $5,550, $3,998, respectively, related to property destroyed in the fire in the fourth quarter of 2022. The associated lease ROU asset and lease liability were also written-off, with remaining lease obligation of $20 being recorded for December rent. We have incurred certain fees for various professional services in 2022 in connection with the assessment of the fire and the efforts to rebuild and resume operations. Further, we incurred $195 of compensation and benefits in 2022 for Grass Valley manufacturing employees, subsequent to the fire. In connection with the Grass Valley fire, we have recognized anticipated insurance recoveries deemed probable

of collection of $5,000 in 2022 related to our ongoing insurance claim for property damage, which the corresponding receivable is recorded as Prepaids and other current assets on the Consolidated Balance Sheet as of December 31, 2022.  

Additional business interruption insurance coverage with limits of $15,000 remains pending as of December 31, 2022, and will be recognized as income when all contingencies have been resolved.

Acquisition Costs

During 2022, acquisition costs include $1,046 primarily related to the acquisition of GVB Biopharma and consist primarily of professional fees and others costs.

Other general charges

During 2022 and 2021, the Company recorded other impairment charges in connection with intangible assets subject to amortization that are periodically reviewed for strategic importance and commercialization opportunity prior to expiration and we recorded an impairment charge for the tradename intangible asset impacted by changes to expect future cash flows of $1,453.

Additionally, the Company recorded an inventory write-down in the fourth quarter in connection with unavoidable casualty from a weather event that resulted in hemp/cannabis crop loss.