20.     Subsequent Events

CAC Asset Purchase Agreement

On January 28, 2025, CAC (“Seller”), a Massachusetts corporation and wholly owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “APA”) with In Good Health, Inc. (“Buyer”), a Massachusetts corporation. Under the terms of the APA, the Buyer will acquire substantially all the assets and assume certain liabilities of the Seller’s adult-use and medical cannabis dispensaries located in Taunton and Brockton, Massachusetts (collectively, the “Business”).

The purchase price for the assets is $2,000, payable by wire transfer, plus the assumption of certain liabilities as specified in the APA. The assets being acquired include, but are not limited to, inventory, contracts, tangible personal property, and goodwill associated with the Business. The APA also outlines specific excluded assets and liabilities that will remain with the Seller.

Litigation

On February 11, 2025, Earth’s Healing Inc. (the “Named Plaintiff”) filed a complaint in the United Stated District Court for the Northern District of California against Shenzhen Smoore Technology Co. Ltd, Jupiter, 3Win Corporation, CB Solutions Inc. and Greenlane Holdings, Inc. (collectively, the “Defendants”). Jupiter is a wholly owned subsidiary of the Company. In the complaint, the Named Plaintiff alleges, on behalf of a class of similarly-situated plaintiffs, that the Defendants violated federal antitrust statutes through the sale and distribution of closed cannabis oil vaporizing systems.

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Notice of Default

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On March 28, 2025, the Company received notices of default from IIP-PA 9 LLC and IIP-MA 8 LLC, the landlords for properties located at 411 Susquehanna Street, White Haven, PA, and 30 Mozzone Street, Taunton, MA, respectively, and each subsidiaries of Innovative Industrial Properties Inc (collectively, the “Landlord”). These notices were issued due to outstanding rental payments and other financial obligations under the respective leases.

The notice for the White Haven property indicated that Standard Farms LLC, a subsidiary of the Company, owed a total of $1,131, which includes base rent, additional rent, and replenishment of the security deposit.  The Landlord expressed its intent to terminate the lease and pursue legal proceedings if the defaults were not cured by April 4, 2025.

Similarly, the notice for the Taunton property states that CAC, another subsidiary of the Company, owed a total of $2,997 which includes base rent, additional rent, late charges, interest, and replenishment of the security deposit.  The Landlord also indicated its intent to terminate the lease and seek damages if the defaults were not remedied by April 4, 2025.

Following receipt of the notices described above, the Company engaged in negotiations with the Landlord to cure the defaults. The Company has already made payments in satisfaction of the April rent obligations in exchange for forbearance from pursuing termination and eviction and the Landlord has accepted such payments. The Company is committed to negotiating in good faith to resolve the outstanding amounts and secure favorable terms for its operations. The Company is actively working to address these financial obligations and is exploring all available options to mitigate the impact of these defaults on its business operations.