Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

v3.21.1
INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS INTANGIBLE ASSETS The Company has acquired cannabis-related licenses as part of a business combination with a gross value of approximately $19,000, which have indefinite useful lives as they are expected to generate economic benefit to the Company in perpetuity. In addition, during 2019 the Company acquired finite-lived intangible assets with a gross value of approximately $7,091 as part of its Herbal Brands acquisition. During the three months ended March 31, 2021 and 2020 the Company recorded approximately $390 and $217, respectively, of amortization related to its finite-lived intangible assets.
The following tables present details of the Company’s total intangible assets as of March 31, 2021 and December 31, 2020. The value of product formulation intangible asset is included in the value of Brand:
March 31, 2021
  Gross
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		   Weighted-
Average
Useful Life
(in Years)
Finite-lived intangible assets:
             
Customer contracts $ 925  $ 725  $ 200  0.2
Customer relationships 1,000  350  650  4.1
Customer list 650  249  401  3
Brand 4,516  878  3,638  8
Total finite-lived intangible assets $ 7,091  $ 2,202  $ 4,889 
 
Indefinite-lived intangible assets:
Licenses $ 19,000  N/A $ 19,000 
Total indefinite-lived intangible assets $ 19,000  N/A $ 19,000 
Total intangible assets $ 26,091  $ 2,202  $ 23,889 
December 31, 2020
  Gross
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		   Weighted-
Average
Useful Life
(in Years)
Finite-lived intangible assets:
             
Customer contracts $ 925  $ 525  $ 400  0.5
Customer relationships 1,000  304  696  4.4
Customer list 650  217  433  3.3
Brand 4,516  766  3,750  8.3
Total finite-lived intangible assets $ 7,091  $ 1,812  $ 5,279 
 
Indefinite-lived intangible assets:
Licenses $ 19,000  N/A $ 19,000 
Total indefinite-lived intangible assets $ 19,000  N/A $ 19,000 
Total intangible assets $ 26,091  $ 1,812  $ 24,279 

2020 Interim Impairment Testing

In conjunction with the impairment testing performed as of March 31, 2020 (refer to Note 9. for more detail) the Company reviewed finite-lived intangible assets for impairment. Indefinite-lived intangible assets, consisting of certain of the Company’s licenses, were reviewed as part of the impairment assessment during the first quarter of 2020 similar to goodwill, in accordance
with ASC 350. The Company did not recognize an impairment related to the carrying value of any of the Company’s finite or indefinite-lived intangible assets as a result of the impairment assessments performed as of March 31, 2020.

For each of the three months ended March 31, 2021 and 2020, no impairment was recognized related to the carrying value of any of the Company’s finite or indefinite-lived intangible assets.
Annual Impairment Testing
In accordance with ASC Topic 350, “Intangibles – Goodwill and Other,” the Company performs its annual impairment test as of December 31 of each year. Refer to Note 9. for more detail.
Amortization Expense
The following table reflects the estimated future amortization expense for each period presented for the Company’s finite-lived intangible assets as of March 31, 2021:
Estimated
Amortization
Expense
2022 $ 1,728 
2023 702 
2024 585 
2025 542 
2026 542 
Thereafter 790 
Total $ 4,889