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INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS
6. INTANGIBLE ASSETS
Intangible assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value as of the acquisition date. Amortization of definite life intangible assets is provided on a straight-line basis over their estimated useful lives. The estimated useful lives, residual values, and amortization methods for intangible assets are reviewed by the Company at each year end, and any changes in estimates are accounted for prospectively.
As of December 31, 2022 and December 31, 2021, intangible assets consisted of the following:
LicensesTradenamesTechnologyTotal
Cost
Balance as of January 1, 2022$1,386,131 $54,166 $11,603 $1,451,900 
Purchases— — — — 
Additions from business combination21,545 — — 21,545 
Adjustments to purchase price allocation(2,025)— (5,172)(7,197)
Impairment(130,670)— — (130,670)
Balance as of December 31, 2022$1,274,981 $54,166 $6,431 $1,335,578 
Accumulated Amortization
Balance as of January 1, 202266,703 4,158 1,126 71,987 
Amortization91,062 5,421 861 97,344 
Impairment$(14,519)$— $— $(14,519)
Balance as of December 31, 2022$143,246 $9,579 $1,987 $154,812 
Net Book Value
Balance as of January 1, 20221,319,428 50,008 10,477 1,379,913 
Balance as of December 31, 2022$1,131,735 $44,587 $4,444 $1,180,766 
LicensesTradenamesTechnologyTotal
Cost
Balance as of January 1, 2021$76,375 $78 $— $76,453 
Purchases55,776 — 115 55,891 
Additions from business combination1,254,781 54,088 11,488 1,320,357 
Adjustments to purchase price allocation(801)— — (801)
Disposals— — — — 
Balance as of December 31, 2021$1,386,131 $54,166 $11,603 $1,451,900 
Accumulated Amortization
Balance as of January 1, 20214,034 — — 4,034 
Amortization62,669 4,158 1,126 67,953 
Balance as of December 31, 2021$66,703 $4,158 $1,126 $71,987 
Net Book Value
Balance as of January 1, 202172,341 78 — 72,419 
Balance as of December 31, 2021$1,319,428 $50,008 $10,477 $1,379,913 
The Company recorded amortization expense for the years ended December 31, 2022 and 2021 of $97,344 and $67,953, respectively.
On an annual basis, the Company reviews the estimated useful lives, residual values and amortization methods used for each identifiable intangible asset acquired. During the 2022 annual review, management determined that the Arizona cultivation (wholesale) license was impaired. As of December 31, 2022, the Company recorded an impairment charge of $116,151 on the remaining net book value.

No such impairment charges were recorded during the years ended December 31, 2021 or 2020.

Amortization periods of assets with finite lives are based on management’s estimates at the date of acquisition.

During the year ended December 31, 2022, the Company identified an error in its calculation of the technology intangible asset value related to the AltMed acquisition. A correction to the value of the technology intangible asset resulted in an out-of-period increase to the carrying value of goodwill and decrease to the carrying value of the technology intangible asset of approximately $5,172, as well as a decrease to amortization expense of $320.
The following table outlines the estimated annual amortization expense related to intangible assets as of December 31, 2022:
Year Ending December 31:Estimated Amortization
2023$91,461 
202491,461 
202591,461 
202690,746 
202790,672 
Thereafter724,965 
$1,180,766