INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]


4.INTANGIBLE ASSETS AND GOODWILL

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 March 31, 2023, intangible assets consisted of the following:


	Licenses		Tradenames		Technology		Total
Cost
Balance as of January 1, 2023	$	1,274,981	$	54,166	$	6,431	$	1,335,578
Balance as of March 31, 2023	$	1,274,981	$	54,166	$	6,431	$	1,335,578

Accumulated Amortization
Balance as of January 1, 2023	143,246		9,579		1,987		154,812
Amortization	21,250		1,355		260		22,865
Balance as of March 31, 2023	$	164,496	$	10,934	$	2,247	$	177,677

Net Book Value
Balance as of January 1, 2023	1,131,735		44,587		4,444		1,180,766
Balance as of March 31, 2023	$	1,110,485	$	43,232	$	4,184	$	1,157,901

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

The following table outlines the estimated annual amortization expense related to intangible assets as of March 31, 2023:


Year Ending December 31:	Estimated Amortization
2023 (Remaining)	$	68,595
2024	91,461
2025	91,461
2026	90,746
2027	90,672
Thereafter	724,966
	$	1,157,901

The changes in the carrying amount of goodwill, by reportable segment, for the three months ended March 31, 2023 were as follows:


	January 1, 2023		Impairment		Adjustments to purchase price allocation		Acquisitions		March 31, 2023
Cultivation	$	83,004	$	—	$	—	$	—	$	83,004
Retail	186,084		—		—		—		186,084
Total	$	269,088	$	—	$	—	$	—	$	269,088