INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets and related amortization are summarized in the table below:


	Licenses		Know-How		Total


Gross Carrying Amount, March 31, 2024 and December 31, 2023	$	25,661	$	9,700	$	35,361

Accumulated Amortization, December 31, 2023	$	—	$	(8,568)	$	(8,568)
Amortization Expense	—		(485)		(485)

Accumulated Amortization, March 31, 2024	$	—	$	(9,053)	$	(9,053)
Intangible Assets, Net at December 31, 2023	$	25,661	$	1,132	$	26,793
Intangible Assets, Net at March 31, 2024	$	25,661	$	647	$	26,308

During fiscal year 2023, the Company entered into agreements to acquire dispensary licenses from Euphoria, LLC and Westside Visionaries. Refer to Note 5 for further details on the transaction.

Goodwill


Balance, December 31, 2022	$	41,807
Adjustment to Acquisitions	—
Impairment	—
Balance, March 31, 2024	$	41,807

Impairment of Intangible Assets and Goodwill

Goodwill as of March 31, 2024 is related to the THC Cannabis segment in which there is no accumulated impairment within this segment. As of March 31, 2024 and December 31, 2023, all goodwill and intangibles are attributable to the THC Cannabis segment.

Goodwill and infinite lived assets are assessed on an annual basis for impairment, or more frequently, if circumstances indicate an impairment to the carrying value may have occurred. As of March 31, 2024, the Company believes the carrying amounts of the long-lived assets, including finite-lived intangible assets (licenses), are recoverable and there were no events or circumstances that indicated impairment. However, if adverse events were to occur or circumstances were to change indicating the carrying amount of such assets may not be fully recoverable, the assets would be reviewed for impairment.

Refer to Note 17 for discussion of intangible assets and goodwill related to the Company's operations in California classified as discontinued operations.