Intangible Assets

9 Months Ended

Sep. 30, 2020

Intangible Assets Net Excluding Goodwill [Abstract]

10.	Intangible Assets

Intangible assets are comprised of the following items:

	September 30,								December 31,
	2020								2019
	Cost		Accumulated Amortization		Impairment		Net		Cost		Accumulated Amortization		Impairment		Net
Definite-lived intangible assets:
Patent	$	669	$	131	$	538	$	—	$	716	$	99	$	—	$	617
Customer relationships		132,837		13,241		—		119,596		135,953		7,132		—		128,821
Developed technology		6,912		1,094		—		5,818		7,074		590		—		6,484
Websites		5,126		3,921		—		1,205		5,157		3,331		—		1,826
Trademarks and licenses		9,052		1,293		7,650		109		9,135		925		—		8,210
Total		154,596		19,680		8,188		126,728		158,035		12,077		—		145,958
Indefinite-lived intangible assets:
Cultivation license		10,239		—		10,239		—		10,689		—		—		10,689
Alef license		—		—		—		—		4,086		—		4,086		—
Trademarks		54,125		—		—		54,125		55,416		—		—		55,416
Rights under ABG Profit Participation Arrangement		16,765		—		16,765		—		119,366		—		102,601		16,765
Total		81,129		—		27,004		54,125		189,557		—		106,687		82,870
Total intangible assets		235,725		19,680		35,192		180,853	$	347,592	$	12,077	$	106,687	$	228,828

In connection with the Company’s closure of its High Park Gardens facility, the Company determined that the fair value of the indefinite-lived cultivation license was below carrying value. As a result, the Company incurred non-cash impairment charges of $10,239, representing the full net book value of the cultivation license, presented in impairment of assets in the statements of net loss and comprehensive loss (refer to Note 2).

In connection with the decreased demand projections of CBD products in the United States resulting in a reduced estimate of future cash flows, during the first quarter of 2020 the Company determined that the fair value of indefinite-lived rights under the ABG Profit Participation Arrangement and definite-lived trademarks under the Trademark and License Agreement with ABG for the use of the Prince trademark (“ABG Prince Agreement”) were below the carrying value. As a result, the Company incurred non-cash impairment charges of $16,765 and $6,063 representing the full net book values of the intangible assets relating to the ABG Profit Participation Agreement and ABG Prince Agreement respectively, presented in impairment of assets in the statements of net loss and comprehensive loss (refer to Note 3). In June 2020, the Company completed the separation from Smith & Sinclair and recognized additional non-cash impairment charges of $3,320 presented in impairment of assets in the statement of net loss and comprehensive loss, of which $2,126 related to other CBD trademarks and patents.

Amortization expenses for intangibles was $2,765 and $7,603 for the three and nine months ended September 30, 2020 (2019 – $2,529 and $6,131). Expected future amortization expenses for intangible assets as at September 30, 2020 are as follows:

Year ending December 31,	Amortization
2020 (remaining three months)	$	2,522
2021		9,801
2022		9,306
2023		9,078
2024		9,078
Thereafter		86,943
Total	$	126,728