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INTANGIBLE ASSETS AND GOODWILL (Tables)

12 Months Ended

Dec. 31, 2022

INTANGIBLE ASSETS AND GOODWILL

Schedule of intangible assets


							Useful life
Transaction		Acquisition Date		Amount			(in years)
Green Man Acquisition ⁽¹⁾		December 2022		$	150,000		1
Green Tree Acquisition ⁽¹⁾		December 2022		$	950,000		2
Trees MLK Acquisition ⁽²⁾		January 2022		$	88,000		10
Trees Portland Acquisition		December 2021		$	292,000		10
Trees Waterfront Acquisition⁽²⁾		December 2021		$	217,000		10
Trees Englewood Acquisition		September 2021		$	1,399,000		10

(1)

^{The purchase price allocation for this acquisition has not been finalized, therefore this amount could be subsequently adjusted. Note that the useful life takes into account that management plans to re-brand the acquired stores under the TREES tradename.}

(2)

^{The trade name intangible asset for these acquisitions was fully impaired in 2022. See discussion of impairment charges below in this footnote.}

Schedule of Intangible Assets Other than Goodwill Roll forward


			Gross Tradename			Accumulated Amortization			Net Tradename
Balance as of December 31, 2021		$	6,323,780		$	(323,967)		$	5,999,813
Purchase price allocation adjustments (see Note 2)			(3,942,000)			—			(3,942,000)
Tradename intangibles acquired			1,188,000			—			1,188,000
Amortization			—			(148,538)			(148,538)
Impairment			(553,377)			—			(553,377)
Balance as of December 31, 2022		$	3,016,403		$	(472,505)		$	2,543,898

Schedule of estimated amortization expense of intangible assets


Year ending December 31,		Amount
2023		$	788,758
2024			618,073
2025			169,100
2026			169,100
2027			169,100
Thereafter			629,767
Total		$	2,543,898

Summary of changes in amount of goodwill


			Gross Goodwill			Accumulated Impairment			Net Goodwill
Balance as of December 31, 2020		$	2,484,200		$	—		$	2,484,200
Goodwill acquired			8,799,657			—			8,799,657
Impairment			—			(2,484,200)			(2,484,200)
Balance as of December 31, 2021		$	11,283,857		$	(2,484,200)		$	8,799,657
Goodwill acquired			8,094,258						8,094,258
Purchase price allocation adjustment			3,942,000			—			3,942,000
Impairment			—			(2,450,941)			(2,450,941)
Balance as of December 31, 2022		$	23,320,115		$	(4,935,141)		$	18,384,974


			Gross Goodwill			Accumulated Impairment			Net Goodwill
Balance as of December 31, 2020		$	—		$	—		$	—
Goodwill acquired			8,799,657			—			8,799,657
Balance as of December 31, 2021		$	8,799,657		$	—		$	8,799,657
Goodwill acquired			8,094,258			—			8,094,258
Purchase price allocation adjustment			3,942,000			—			3,942,000
Impairment			—			(2,450,941)			(2,450,941)
Balance as of December 31, 2022		$	20,835,915		$	(2,450,941)		$	18,384,974


			Gross Goodwill			Accumulated Impairment			Net Goodwill
Balance as of December 31, 2020		$	2,484,200		$	—		$	2,484,200
Goodwill acquired			—			—			—
Impairment			—			(2,484,200)			(2,484,200)
Balance as of December 31, 2021		$	2,484,200		$	(2,484,200)		$	—
Goodwill acquired			—			—			—
Balance as of December 31, 2022		$	2,484,200		$	(2,484,200)		$	—