Alpine 4 Holdings (NASDAQ:ALPP) has announced plans to cease operations of its subsidiary Thermal Dynamics International, Inc. (TDI) as part of a strategic move to bolster its core business. The decision, made by the Board of Directors on March 15, 2024, aims to redirect the company's resources towards more strategic and profitable ventures, without affecting other subsidiaries.
TDI's contribution to Alpine 4's revenue for the year ending December 31, 2023, was projected at around $8.5 million. The shutdown process is expected to span approximately three months, during which the company will negotiate with TDI's customers and suppliers.
Financially, Alpine 4 anticipates incurring non-cash expenses between $10 million to $12 million due to the wind-down. This includes an estimated $11 million impairment of intangible assets and roughly $1 million impairment of property, plant, and equipment. Furthermore, the company is prepared for additional transition costs of about $500,000, which will cover advisor fees.
These expected expenses, however, will be excluded from the company's non-GAAP financial performance measures for the year 2024. This exclusion is in line with management's approach to provide a clearer picture of the company's operational performance.
The closure of TDI is a significant step for Alpine 4 as it seeks to optimize its investment strategy and focus on enhancing the profitability of its core operations. This information is based on a press release statement.
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