INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

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 September 30, 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
Other Additions(1)	1,950		—		—		1,950
Balance as of September 30, 2023	$	1,276,931	$	54,166	$	6,431	$	1,337,528
Accumulated Amortization
Balance as of January 1, 2023	143,246		9,579		1,987		154,812
Amortization	63,783		4,066		779		68,628
Balance as of September 30, 2023	$	207,029	$	13,645	$	2,766	$	223,440
Net Book Value
Balance as of January 1, 2023	1,131,735		44,587		4,444		1,180,766
Balance as of September 30, 2023	$	1,069,902	$	40,521	$	3,665	$	1,114,088

(1) The Company obtained a license following regulatory approval where payment consideration occurred in prior periods.

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 September 30, 2023:

Year Ending December 31:	Estimated Amortization
2023 (Remaining)	$	22,914
2024	91,656
2025	91,656
2026	90,941
2027	90,867
Thereafter	726,054
	$	1,114,088

The changes in the carrying amount of goodwill, by reportable segment, for the nine months ended September 30, 2023 were as follows:

	January 1, 2023		Impairment		Adjustments to purchase price allocation		Acquisitions		September 30, 2023
Cultivation	$	83,004	$	—	$	—	$	—	$	83,004
Retail	186,084		—		134		—		186,218
Total	$	269,088	$	—	$	134	$	—	$	269,222

As of September 30, 2023, the Company recorded a measurement period adjustment in connection with the September 7, 2022 acquisition of WSCC, Inc. The net impact led to an increase of $134 to goodwill. The Company obtained additional information about the facts and circumstances that existed at the time of the acquisition date that led to changes in provisional amounts recognized in the initial opening financials for income taxes.