Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

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

	Licenses		Customer Relationships		Non-Compete Agreements		Know-How		Tradenames and Trademarks		Total
Gross Carrying Amount, December 31, 2022	$	25,661	$	2,900	$	249	$	9,700	$	101	$	38,611
Impairment	—		—		—		—		—		—
Gross Carrying Amount, September 30, 2023 and December 31, 2022	$	25,661	$	2,900	$	249	$	9,700	$	101	$	38,611
Accumulated Amortization, December 31, 2022	$	—	$	(2,393)	$	(249)	$	(6,628)	$	(101)	$	(9,371)
Amortization Expense	—		(434)		—		(1,455)		—		(1,889)
Impairment	—		—		—		—		—		—
Accumulated Amortization, September 30, 2023	$	—	$	(2,827)	$	(249)	$	(8,083)	$	(101)	$	(11,260)
Intangible Assets, Net at December 31, 2022	$	25,661	$	507	$	—	$	3,072	$	—	$	29,240
Intangible Assets, Net at September 30, 2023	$	25,661	$	73	$	—	$	1,617	$	—	$	27,351

During the nine months ended September 30, 2023, the Company entered into an agreement to acquire a dispensary license from Euphoria, LLC. Refer to Note 5 for further details on the transaction.

Goodwill

Balance, December 31, 2022	$	41,807
Adjustment to Acquisitions	—
Impairment	—
Balance, September 30, 2023	$	41,807

Impairment of Intangible Assets and Goodwill

Goodwill as of September 30, 2023 is related to the THC Cannabis segment in which there is no accumulated impairment within this segment. Goodwill related to the CBD Wellness segment has an accumulated impairment charge of $13.4 million, which represented the entire balance and occurred during the year ended December 31, 2020. As of September 30, 2023 and December 31, 2022, 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 September 30, 2023, 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 for any assets outside of California. 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 16 for discussion of intangible assets and goodwill related to the Company's operations in California classified as discontinued operations.