Annual report [Section 13 and 15(d), not S-K Item 405]

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
 7. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Goodwill, carrying amount, as of January 1, 2023
 $ 38,239 
Impairment (7,329)
Goodwill, carrying amount, as of December 31, 2023
 30,910 
Goodwill, carrying amount, as of December 31, 2024
 $ 30,910 
Other Intangible Assets
The components of other intangible assets are as follows:
As of December 31, Estimated Useful
Life
2024 2023
Licenses (1)(2)
$ 93,196  $ 82,401  15 years
Intellectual Property 9,580  9,580  10 years
Tradenames 12,169  12,209 
5 - 10 years
Patient/Customer database 2,925  3,195 
5 - 10 years
Non-compete 115  155  3 years
Website development 61  61  3 years
Formulations 50  50  Indefinite
Total gross amount 118,096  107,651 
Less: Accumulated Amortization (17,624) (11,684)
Other Intangible Assets, net $ 100,472  $ 95,967 
(1)Includes licenses acquired in 2024 in the amount of $10,795. Refer to Note 6 - Acquisitions for more information.
(2)The Company commenced amortizing its business licenses effective June 1, 2024. Refer to Note 2 - Basis of Presentation and Summary of Significant Accounting Policies for more information.
Amortization expense for the years ended December 31, 2024 and 2023 was $6,281 and $3,269, respectively, and is included in cost of goods sold and in operating expenses in the consolidated statements of operations. For the year ended December 31, 2024, all additions to intangible assets were related to acquisitions.
The estimated future annual amortization expense related to intangible assets as of December 31, 2024 are as follows:
2025 $ 9,130 
2026 8,861 
2027 8,057 
2028 7,992 
2029 7,148 
Thereafter 59,234 
   Total estimated future amortization expense $ 100,422 
Impairment of Goodwill and Other intangible assets
2024 Impairments
The Company did not have any impairment of goodwill and other intangible assets during the year ended December 31, 2024.
2023 Impairments
During the year ended December 31, 2023, management determined that the Company’s goodwill in Nevada was impaired due to the Company’s lower than expected operating results, driven in part by the overall decline in the retail market within the state. The Company utilized a combination of the income approach (discounted cash flow method) and market approach (guideline company method) for its impairment test for each state, resulting in a goodwill impairment charge of $7,329. The key inputs and assumptions used in the fair valuation of Nevada include: (i) a five-year cash flow forecast, which is based on the Company’s actual operating results and business plans; (ii) a perpetual growth rate; (iii) an estimated discount rate and (iv) a weighted average cost of capital. The goodwill impairment is recorded within operating expenses in the consolidated statements of operations.
Additionally, for the year ended December 31, 2023, management determined that certain intangible assets associated with the NuLeaf acquisition were impaired due to the Company rebranding certain NuLeaf stock keeping units sold to retail and wholesale customers, and as a result, recorded an impairment charge of $845. The intangible asset impairment is recorded within operating expenses in the consolidated statements of operations.