| Intangible Assets |
8. Intangible Assets
Intangible asset balances consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
Amortization |
|
|
|
June 30, |
Intangible assets, net |
|
2024 |
|
Additions |
|
Expense |
|
Impairment |
|
2025 |
Customer relationships |
|
$ |
27,713 |
|
$ |
— |
|
$ |
(2,106) |
|
$ |
— |
|
$ |
25,607 |
Trademarks |
|
|
6,775 |
|
|
— |
|
|
(906) |
|
|
— |
|
|
5,869 |
License rights(1) |
|
|
2,253 |
|
|
— |
|
|
(9) |
|
|
— |
|
|
2,244 |
Patents & technologies |
|
|
7,804 |
|
|
— |
|
|
(975) |
|
|
— |
|
|
6,829 |
Backlog and non-competition agreements |
|
|
4 |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
Total intangible assets, net |
|
$ |
44,549 |
|
$ |
— |
|
$ |
(3,996) |
|
$ |
— |
|
$ |
40,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
Amortization |
|
|
|
|
June 30, |
Intangible assets, net |
|
2023 |
|
Additions |
|
Expense |
|
Impairment |
|
2024 |
Customer relationships |
|
$ |
51,812 |
|
$ |
— |
|
$ |
(3,349) |
|
$ |
— |
|
$ |
48,463 |
Trademarks |
|
|
14,264 |
|
|
— |
|
|
(1,473) |
|
|
— |
|
|
12,791 |
License rights(1) |
|
|
2,271 |
|
|
— |
|
|
(9) |
|
|
— |
|
|
2,262 |
Patents & technologies |
|
|
16,450 |
|
|
— |
|
|
(1,645) |
|
|
— |
|
|
14,805 |
Backlog and non-competition agreements |
|
|
4 |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
Total intangible assets, net |
|
$ |
84,801 |
|
$ |
— |
|
$ |
(6,476) |
|
$ |
— |
|
$ |
78,325 |
_____________
(1)License rights primarily consists of indefinite-lived intangible assets, which pertain to licenses for cultivation and processing.
As of both June 30, 2025 and December 31, 2024, the total historical cost of intangible assets was $159,967 and the total cost of intangible assets net of impairment was $132,668, which is included in intangible assets, net in the condensed consolidated balance sheets. Amortization expense for the three months ended June 30, 2025 and 2024 was $1,998 and $3,238, respectively. Amortization expense for the six months ended June 30, 2025 and 2024 was $3,996 and $6,476, respectively. This amortization expense is included in depreciation and amortization in the condensed consolidated statements of operations and comprehensive loss.
The following table outlines the estimated future annual amortization expense for intangible assets as of June 30, 2025:
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|
|
|
|
|
Estimated |
Years ended December 31, |
|
amortization |
Remainder of 2025 |
|
$ |
3,996 |
2026 |
|
|
7,836 |
2027 |
|
|
7,836 |
2028 |
|
|
7,818 |
2029 |
|
|
3,622 |
Thereafter |
|
|
7,245 |
|
|
$ |
38,353 |
|