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Exit of the Fintech Platform Business
 6 Months Ended
Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Exit of the Fintech Platform Business Exit of the Fintech Platform Business
In September 2023, we commenced a plan to exit the Fintech Platform business as the costs and resources required to support the Fintech Platform no longer aligned with the Company’s capital allocation priorities. The exit and restructuring activities included elimination of Fintech Platform personnel, the termination of Fintech Platform research and development activities and an elimination of outside services expenses related to the Fintech Platform. Based on such plan, substantially all payment processing activities for Fintech Platform customers ended on January 31, 2024 and we substantially completed the remaining activities to wind-down the Fintech Platform operations as of March 31, 2024.
In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the substantial completion of exit of the Fintech Platform business represents a strategic shift that has a major effect on the Company’s operations and financial results. The Fintech Platform business was historically reported as the Service Segment. As a result, the results of our Fintech Platform business have been reflected as discontinued operations in our condensed consolidated financial statements. Our condensed consolidated balance sheet and condensed consolidated statement of operations and comprehensive loss includes reclassification of certain prior year figures to conform to the current period presentation.
Details of assets and liabilities from discontinued operations are as follows:
 
June 30,
December 31,
(in thousands)20242023
Restricted cash, current$875$—
Accounts receivable, net
—16
Prepaid expenses and other current assets
1,7351,837
Total current assets of discontinued operations
$2,610$1,853
Intangible assets, net
$—$538
Restricted cash, non-current
—875
Total non-currents assets of discontinued operations
$—$1,413
Accounts payable
$—$255
Accruals and other current liabilities
255961
Total current liabilities of discontinued operations (1)
$255$1,216
(1)Amount represents severance and personnel liabilities related to the exit of the Fintech Platform business. We substantially completed the restructuring activities as of March 31, 2024. Prior to the issuance of the condensed consolidated financial statements in this Report, $1.1 million was paid and the remaining $0.3 million will be paid over time through the third quarter of 2024. A summary of severance and personnel liabilities related to the exit of the Fintech Platform business, included within current liabilities of discontinued operations on the consolidated balance sheet, is as follows:
(in thousands)
Balance on December 31, 2023$917 
Severance and other personnel costs707 
Cash payments during the period(1,369)
Balance on June 30, 2024$255 
Details of loss from discontinued operations are as follows:
 Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Service revenue$— $3,721 $426 $7,278 
Operating expenses:
Cost of service revenue (exclusive of amortization)34 3,700 350 7,384 
Selling, general and administrative (1)
(123)2,572 1,950 6,663 
Research and development (1)
93 5,183 1,757 10,828 
Amortization— 1,418 — 2,877 
Net loss from discontinued operations$(4)$(9,152)$(3,631)$(20,474)
(1)The restructuring charges are included in the results of discontinued operations for the periods of our condensed consolidated financial statements presented in this Report. A summary of our restructuring charges included within our consolidated statement of operations for the three and six months ended June 30, 2024 were as follows:
(in thousands)Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Research and development$(76)$336 
Selling, general and administrative
17 371 
Total restructuring charges (benefit)
$(59)$707 
As of June 30, 2024, we have recorded total restructuring charges of $3.6 million and impairment charges of $93.2 million in connection with the exit of the Fintech Platform business.
The cash flows related to discontinued operations have not been segregated and are included in the condensed consolidated statements of cash flows. Significant non-cash activities related to discontinued operations are as follows:
Six Months Ended June 30,
(in thousands)20242023
Operating activities:
Stock-based compensation$(10)$4,243 
Depreciation and amortization$538 $4,164