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Intangible Assets
12 Months Ended
Dec. 31, 2020
Intangible Assets Net Excluding Goodwill [Abstract]  
Intangible Assets

11. Intangible Assets

Intangible assets are comprised of the following items:

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2020

 

 

2019

 

 

Weighted

Average

Amortization

Period

(in years)

 

 

Cost

 

 

Accumulated

Amortization

 

 

Impairment

 

 

Net

 

 

Cost

 

 

Accumulated

Amortization

 

 

Impairment

 

Net

 

Definite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patent

 

 

 

$

669

 

 

$

131

 

 

$

538

 

 

$

 

 

$

716

 

 

$

99

 

 

$

 

$

617

 

Customer relationships

 

16

 

 

 

138,885

 

 

 

16,030

 

 

 

 

 

 

122,855

 

 

 

135,953

 

 

 

7,132

 

 

 

 

 

128,821

 

Developed technology

 

10

 

 

 

7,227

 

 

 

1,325

 

 

 

 

 

 

5,902

 

 

 

7,074

 

 

 

590

 

 

 

 

 

6,484

 

Websites

 

3

 

 

 

5,332

 

 

 

4,348

 

 

 

 

 

 

984

 

 

 

5,157

 

 

 

3,331

 

 

 

 

 

1,826

 

Trademarks and licenses

 

5

 

 

 

9,009

 

 

 

1,245

 

 

 

7,650

 

 

 

114

 

 

 

9,135

 

 

 

925

 

 

 

 

 

8,210

 

Total

 

 

 

 

 

161,122

 

 

 

23,079

 

 

 

8,188

 

 

 

129,855

 

 

 

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

Indefinite

 

 

 

56,590

 

 

 

 

 

 

 

 

 

56,590

 

 

 

55,416

 

 

 

 

 

 

 

 

55,416

 

Rights under ABG Profit

   Participation Arrangement

 

 

 

 

16,765

 

 

 

 

 

 

16,765

 

 

 

 

 

 

119,366

 

 

 

 

 

 

102,601

 

 

16,765

 

Total

 

 

 

 

 

83,594

 

 

 

 

 

 

27,004

 

 

 

56,590

 

 

 

189,557

 

 

 

 

 

 

106,687

 

 

82,870

 

Total intangible assets

 

 

 

 

$

244,716

 

 

$

23,079

 

 

$

35,192

 

 

$

186,445

 

 

$

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 3).

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 4). 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 $11,002, $9,824, and $374 in 2020, 2019, and 2018, respectively. Expected future amortization expenses for intangible assets as of December 31, 2020 are as follows: 2021 – $10,222; 2022 – $9,744; 2023 - $9,500; 2024 - $9,493, 2025 – $9,469; and thereafter – $81,427.