| Intangible Assets |
7.Intangible Assets
Intangible asset balances consisted of the following:
|
|
|
|
|
|
|
Intangible assets |
|
June 30, 2022 |
|
December 31, 2021 |
Customer relationships |
|
$ |
85,300 |
|
$ |
85,300 |
Trademarks |
|
|
29,000 |
|
|
29,000 |
License rights(1) |
|
|
17,891 |
|
|
17,890 |
Management agreements |
|
|
926 |
|
|
926 |
Patents & technologies |
|
|
32,900 |
|
|
32,900 |
Backlog and non-competition agreements |
|
|
10,406 |
|
|
10,406 |
Total intangible assets, at cost |
|
|
176,423 |
|
|
176,422 |
Less: Accumulated amortization |
|
|
(55,005) |
|
|
(47,652) |
Total intangible assets, net |
|
$ |
121,418 |
|
$ |
128,770 |
_____________
| (1) |
License rights include indefinite-lived intangible assets, which pertain to licenses for cultivation and processing, are not subject to amortization and are tested annually for impairment. Refer to Note 2 — Summary of Significant Accounting Policies of the Company’s audited consolidated financial statements and accompanying notes as of and for the years ended December 31, 2021 and 2020 filed with the Form 10 for further information pertaining to the Company’s accounting policies for its intangible assets. |
Amortization expense for the three months ended June 30, 2022 and 2021, was $3,677 and $3,651, respectively. Amortization expense for the six months ended June 30, 2022 and 2021, was $7,353 and $7,303, 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 related to intangible assets as of June 30, 2022:
|
|
|
|
|
|
Estimated |
Years ended December 31, |
|
amortization |
Remainder of 2022 |
|
$ |
7,172 |
2023 |
|
|
13,056 |
2024 |
|
|
13,056 |
2025 |
|
|
13,056 |
2026 |
|
|
12,899 |
Thereafter |
|
|
44,268 |
|
|
$ |
103,507 |
|