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GOODWILL AND INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
Primarily due to a sustained decline in the Company's market value of common stock and market conditions, the Company identified a triggering event requiring a test for impairment as of June 30, 2022. The Company completed its goodwill impairment testing and recorded an impairment charge of $189,572 as the test determined that the carrying value of the United States and Canada reporting units was in excess of the fair value. The recognized impairment reduced the goodwill balance to zero as of June 30, 2022. The impairment was primarily due to a deterioration in customer demand in the United States and Canada caused by macroeconomic and industry conditions.
The Company determined the fair value of the U.S. and Canada reporting units based on an income approach, using the present value of future discounted cash flows, and based on a market approach. The fair values were reconciled to the market value of common stock of Hydrofarm to corroborate the estimates used in the interim test for impairment. Significant estimates used to determine fair value included the weighted average cost of capital, financial forecasts, and pricing multiples derived from publicly-traded companies that are comparable to the reporting units. Refer to Note 15 - Fair Value Measurements, for further discussion of valuation inputs. The changes in goodwill are as follows:
Goodwill
Balance at December 31, 2021$204,868 
Acquisition - Innovative Growers Equipment - measurement period adjustments(21,304)
Acquisition - Greenstar Plant Products - measurement period adjustments7,000 
Acquisition - all others - remeasurement adjustments and foreign currency translation adjustments, net(992)
Impairments(189,572)
Balance at December 31, 2022$— 
Intangible assets, net
Intangible assets, net comprised the following:
December 31, 2023December 31, 2022
Gross Carrying AmountAccumulated AmortizationNet Book ValueGross Carrying AmountAccumulated AmortizationNet Book Value
Finite-lived intangible assets:
Computer software$9,325 $(8,357)$968 $9,408 $(7,976)$1,432 
Customer relationships99,805 (31,883)67,922 99,933 (24,533)75,400 
Technology, formulations and recipes114,181 (25,124)89,057 114,187 (15,344)98,843 
Trade names and trademarks131,493 (16,740)114,753 131,410 (10,052)121,358 
Other
4,802 (4,422)380 4,778 (4,246)532 
Total finite-lived intangible assets, net359,606 (86,526)273,080 359,716 (62,151)297,565 
Indefinite-lived intangible asset:
Trade name2,801 — 2,801 2,801 — 2,801 
Total Intangible assets, net$362,407 $(86,526)$275,881 $362,517 $(62,151)$300,366 
The Company also reviewed intangible assets with finite lives and indefinite lives for impairment as of June 30, 2022, however no impairment was noted. We did not identify a triggering event requiring a test for impairment during the remainder of 2022, or the year ended December 31, 2023.
Amortization expense related to intangible assets was $24,355 and $33,308 for the years ended December 31, 2023, and 2022, respectively. The following are the estimated useful lives and the weighted-average amortization period remaining as of December 31, 2023, for the major classes of finite-lived intangible assets:
Useful lives
Weighted-average amortization period
Computer software
3 to 5 years
2 years
Customer relationships
7 to 18 years
10 years
Technology, formulations and recipes
8 to 12 years
9 years
Trade names and trademarks
15 to 20 years
17 years
The estimated aggregate future amortization expense for intangible assets subject to amortization as December 31, 2023, is summarized below:
Estimated Future Amortization Expense
Year ending December 31,
2024$24,396 
202524,289 
202624,053 
202723,820 
202823,185 
Thereafter153,337 
Total $273,080