Assets and Liabilities Classified as Held for Sale

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Classified as Held for Sale

Note 2. Assets and Liabilities Classified as Held for Sale

The Company continues to actively market the sandalwood business and expects a sale to occur within the next 12 months. Accordingly, the assets and associated liabilities of the business, referred to as the “disposal group”, continue to be classified as held for sale.

The disposal group’s estimated fair value was determined using Level 3 inputs based on preliminary indicative offers from third parties. The following summarizes the major classes of assets and liabilities classified as held for sale as of June 30, 2025.


	June 30, 2025
Cash and cash equivalents	$	6,270
Accounts receivable, net		853
Inventories		16,962
Property, plant and equipment, net		3,248
Operating lease right-of-use-assets		5,182
Sandalwood tree plantations		25,708
Impairment reserve		(39,418	)
Assets classified as held for sale	$	18,805

Accounts payable and other	$	2,342
Operating lease liabilities		5,056
Liabilities associated with assets held for sale	$	7,398

MERCER INTERNATIONAL INC. 10-Q