Clever Leaves Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SIGNIFICANT ACCOUNTING POLICIES (Tables)

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Changes and Error Corrections [Abstract]

Schedule of Property, Plant and Equipment

Depreciation begins when the asset becomes available for use and is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


			Estimated Useful Life (In Years)

Land			N/A – indefinite
Buildings & warehouse			2 – 40 years
Leasehold improvements			Shorter of lease term or useful life
Furniture and appliances			5 years
Agricultural equipment			2 – 10 years
Computer equipment & telecommunications networks			3 years
Transport equipment			5 years
Laboratory equipment			3 – 20 years

The Company has property, plant, and equipment related to land, buildings and warehouses, leasehold improvements, laboratory, and construction in progress. The additions, disposals, depreciation, and net book values are as follows:


Cost	Land		Buildings & warehouse		Laboratory equipment		Agricultural equipment		Computer equipment		Furniture & appliances		Construction- in-progress		Other				Total






Balance at December 31, 2018	$	1,439	$	2,498	$	1,573	$	41	$	324	$	104	$	624	$	84			$	6,688
Additions from business acquisitions	—		—		—		—		—		—		—		9				9
Additions	3,259		2,815		1,763		1,863		875		588		6,826		687				18,675
Balance at December 31, 2019	$	4,698	$	5,313	$	3,336	$	1,904	$	1,199	$	692	$	7,450	$	780			$	25,372
Additions, net	367		3,151		2,606		—		336		127		(3,162)		240				3,665
Balance at December 31, 2020	$	5,065	$	8,464	$	5,942	$	1,904	$	1,535	$	819	$	4,288	$	1,020			$	29,037

Accumulated Depreciation	Land		Buildings & warehouse		Laboratory equipment		Agricultural equipment		Computer equipment		Furniture & appliances		Construction- in-progress		Other				Total


Balance at December 31, 2018	$	—	$	16	$	10	$	2	$	52	$	2	$	—	$	17			$	99
Depreciation (b)	—		111		301		170		180		100		—		37				898
Balance at December 31, 2019	$	—	$	127	$	311	$	172	$	232	$	102	$	—	$	54			$	997
Depreciation (a)	—		560		526		438		518		209		—		108				2,359
Balance at December 31, 2020	$	—	$	687	$	837	$	610	$	750	$	311	$	—	$	162			$	3,356

Net Book Value	Land		Buildings & warehouse		Laboratory equipment		Agricultural equipment		Computer equipment		Furniture & appliances		Construction- in-progress		Other				Total
Balance at December 31, 2018	1,439		2,482		1,563		39		272		102		624		67				6,588
Balance at December 31, 2019	4,698		5,186		3,025		1,732		967		590		7,450		726				24,374
Balance at December 31, 2020	$	5,065	$	7,777	$	5,105	$	1,294	$	785	$	508	$	4,288	$	858	$	—	$	25,680

(a) Includes approximately $1,050 and $685 of depreciation included in inventory and cost of goods sold, respectively.

(b) Includes approximately $100 and nil of depreciation included in inventory and cost of goods sold, respectively.

Construction in progress primarily relate to on-going construction of the Company's Colombian facilities.

Certain amounts may not add due to rounding.

Business Acquisition [Line Items]

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The intangible assets acquired based on the estimate of the fair values of the identifiable intangible assets were as follows:


	Amounts recognized at April 30, 2019		Weighted-Average Remaining Useful Life at April 30, 2019 (in years)
Finite-lived intangible assets:
Customer contracts	$	925	8.7
Customer relationships	1,000		5.6
Customer list	650		5.0
Brand	4,500		10.0
Product formulations	16		5.0
Total finite-lived intangible	$	7,091

Herbal Brands, Inc.

Business Acquisition [Line Items]

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The finite lived intangible assets acquired in the Herbal Brands acquisition and the related estimated useful lives at time of acquisition were as follows:


			Remaining Useful Life at the Acquisition Date (In Years)
Finite-lived intangible assets:
Customer contracts			8.7
Customer relationships			4 - 7
Customer list			5
Brand			10