Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.22.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]  
Summary of Subsidiaries The Company’s subsidiaries and its interests in each are presented below as of December 31, 2021:
Name of Entity
  
Place of Incorporation
  
Interest
 
MPX Bioceutical ULC (“MPX ULC”)
(1)
   Canada      100
MPX Luxembourg SARL
(1)
   Luxembourg      100
ABACA, Inc.
(1)
   Arizona, USA      100
Ambary, LLC
(1)
   Arizona, USA      100
Health For Life, Inc.
(1)
   Arizona, USA      100
iAnthus Arizona, LLC
(“iA AZ”)
   Arizona, USA      100
S8 Management, LLC
(1)
   Arizona, USA      100
S8 Rental Services, LLC
(1)
   Arizona, USA      100
Soothing Options, Inc.
(1)
   Arizona, USA      100
The Healing Center Wellness Center, Inc. (“THCWC”)
(1)
   Arizona, USA      100
Bergamot Properties, LLC
   Colorado, USA      100
Scarlet Globemallow, LLC
   Colorado, USA      100
iAnthus Capital Management, LLC (“ICM”)
   Delaware, USA      100
GHHIA Management, Inc. (“GHHIA”)
   Florida, USA      100
GrowHealthy Properties, LLC (“GHP”)
   Florida, USA      100
iAnthus Holdings Florida, LLC (“IHF”)
   Florida, USA      100
McCrory’s Sunny Hill Nursery, LLC (“McCrory’s”)
   Florida, USA      100
iA IT, LLC
   Illinois, USA      100
Budding Rose, Inc.
(1)
   Maryland, USA      100
GreenMart of Maryland, LLC
(1)
   Maryland, USA      100
LMS Wellness, Benefit, LLC
(1)
   Maryland, USA      100
Rosebud Organics, Inc.
(1)
   Maryland, USA      100
Cannatech Medicinals, Inc.
(1)
   Massachusetts, USA      100
Fall River Development Company, LLC
(1)
   Massachusetts, USA      100
IMT, LLC
(1)
   Massachusetts, USA      100
Mayflower Medicinals, Inc.
   Massachusetts, USA      100
Pilgrim Rock Management, LLC
   Massachusetts, USA      100
CGX Life Sciences, Inc. (“CGX”)
(1)
   Nevada, USA      100
GreenMart of Nevada NLV, LLC (GMNV) 
(1)
   Nevada, USA      100
iAnthus Northern Nevada, LLC
   Nevada, USA      100
GTL Holdings, LLC
   New Jersey, USA      100
iA CBD, LLC (“iA CBD”)
   New Jersey, USA      100
iAnthus New Jersey, LLC
   New Jersey, USA      100
Citiva Medical, LLC (“Citiva”)
   New York, USA      100
iAnthus Empire Holdings, LLC
   New York, USA      100
FWR, Inc.
   Vermont, USA      100
Grassroots Vermont Management Services, LLC
   Vermont, USA      100
Pakalolo, LLC
   Vermont, USA      100
 
(1)
Entities acquired as a part of the MPX Bioceutical Corporation (“MPX”) acquisition on February 5, 2019 (the “MPX Acquisition”). During the year ended December 31, 2020, the Company dissolved
CinG-X
Corporation of America.
Summary of Cash And Cash Equivalents Restricted Cash And Restricted Cash Equivalents
The following table summarizes a reconciliation of cash and restricted cash reported within the consolidated balance sheets to such amounts presented in the statements of cash flows:
 
    
As of December 31,
 
    
2021
    
2020
 
Cash
   $ 13,244      $ 11,015  
Restricted cash
     3,334        495  
    
 
 
    
 
 
 
Total cash and restricted cash presented in the statements of cash flows
  
$
16,578
 
  
$
11,510
 
    
 
 
    
 
 
 
 
Summary of Property Plant And Equipment Useful Life
Property, plant and equipment are recorded at historical cost net of accumulated depreciation, write-downs and impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life as follows:
 
Buildings
  
  
25 years
     
Leasehold improvements
  
   over the shorter of the initial term of the underlying lease plus any reasonably assured renewal terms, and the useful life of the asset
     
Production equipment
  
  
5 years
     
Processing equipment
  
  
5 years
     
Sales equipment
  
  
3 - 5 years
 
Office equipment
  
  
3 - 5 years
     
Land
  
  
not depreciated
Summary of Effects Of Reclassification Adjustment On The Line Items Of Consolidated Statements Of Operations
The following table summarizes the effects of reclassification adjustment on the line items within the Company’s consolidated statements of operations:
 
Prior Year’s Line item
  
Reclassified

Amount
 
  
Current Year’s Line item
Selling, general and administrative expenses
   $ 10,658      Depreciation and amortization
Amortization of intangibles
     15,531      Depreciation and amortization
Other losses
     169      Other income
Summary of Effects Of Reclassification Adjustment On The Line Items Of Consolidated Statements Of Cashflows
The following table summarizes the effects of reclassification adjustment on the line items within the Company’s consolidated statements of cash flows:
 
Prior Year’s Line item
  
Reclassified

Amount
 
  
Current Year’s Line item
Change in operating assets and liabilities
  
$
3,246
 
  
Net cash used in investing activities
Summary of Effects Of the Adjustment On The Line items Within Consolidated Financial Statements The following table summarizes the effects of the adjustment on the line items within the Company’s consolidated balance sheet as of December 31, 2020:
   
December 31, 2020
 
   
As previously
 
reported
   
Adjustment
   
As adjusted
 
Inventories
 
$
30,292
 
 
$
(4,841
 
$
25,451
 
Current assets
    50,464       (4,841     45,623  
Total assets
    357,974       (4,841     353,133  
Accrued and other current liabilities
    56,381       (1,328     55,053  
Current liabilities
    233,207       (1,328     231,879  
Total liabilities
    307,132       (1,328     305,804  
Accumulated deficit
    (720,629     (3,513     (724,142
Total shareholders’ equity
    50,842       (3,513     47,329  
Total liabilities and shareholders’ equity
    357,974       (4,841     353,133  
The effect of the adjustments on the line items on the Company’s consolidated statement of operations for the year ended December 31, 2020 was as follows:
 
   
Year Ended December 31, 2020
 
   
As previously
 
reported
   
Adjustment
   
As adjusted
 
Costs and expenses applicable to revenues
 
$
(64,988
 
$
(4,841
 
$
(69,829
Gross margin
    86,681       (4,841     81,840  
Loss from operations
    (245,050     (4,841     (249,891
Loss from operations before income tax
    (290,070     (4,841     (294,911
Income tax expense
    19,961       (1,328     18,633  
Net loss
    (309,849     (3,513     (313,362
The
effect of the adjustments on the line items on the Company’s consolidated statement of cash flow for the year ended December 31, 2020 was as follows:
 
   
December 31, 2020
 
   
As previously
 
reported
   
Adjustment
   
As adjusted
 
Net loss
  $ (309,849   $ (3,513   $ (313,362
Change in operating assets and liabilities

    9,024       3,513       12,537  
Summary of Effect Of The Adjsutment On The Line Items Within Inventories
The effect of the adjustment on the line items within the Company’s inventories as of December 31, 2020 was as follows:
 
 
  
December 31, 2020
 
 
  
As previously reported
 
  
Adjustment
 
  
As
adjusted
 
Supplies
  $ 8,457     $ (3,447   $ 5,010  
Raw materials
    8,857       (1,810     7,047  
Work in process
    5,737       (27     5,710  
Finished goods
    7,241       443       7,684  
   
 
 
   
 
 
   
 
 
 
Total
 
$
30,292
 
 
$
(4,841
 
$
25,451