iAnthus Capital Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets

Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 7—

Intangible Assets


	As of December 31, 2021
	Cost		Accumulated Amortization		Net Book Value
Licenses	$	153,272	$	33,967	$	119,305
Trademarks		29,100		12,125		16,975
Other		3,762		980		2,782

	$	186,134	$	47,072	$	139,062


	As of December 31, 2020
	Cost		Accumulated Amortization		Net Book Value
Licenses	$	153,273	$	23,713	$	129,560
Trademarks		34,620		8,748		25,872
Other		4,034		685		3,349

	$	191,927	$	33,146	$	158,781

As a result of declining performance of the Company’s CBD business during the year

ended December 31, 2021, an impairment test was performed for iA CBD’s long-lived assets as of December 31, 2021 (Note 2). The Company concluded that the carrying amount of the long-lived assets exceeded the imputed fair value and recorded an impairment loss on intangible assets of $5.2 million for the year ended December 31, 2021 (December 31, 2020—$4.1 million).

In December 2018, GMNV, a wholly owned subsidiary was awarded four conditional

adult-use

dispensary licenses (“Marijuana Retail Store Licenses”) by the Nevada Department of Taxation which was later replaced by the

Nevada Cannabis Compliance Board (“CCB”). The CCB award of the conditional

adult-use

Marijuana Retail Store Licenses was challenged by several unsuccessful applicants in an action in Nevada state court. On July 29, 2020, the CCB and certain plaintiffs and intervenors, including GMNV, executed a partial settlement requiring GMNV to transfer one of the Marijuana Retail Store Licenses (the “Conditional License”) to a settling plaintiff. The Company determined that the carrying value of the Conditional License was not recoverable and exceeded its fair value. As a result, an impairment loss of $4.1 million, the total carrying amount of the Conditional License, was recorded to intangible assets in the Western Region for the year ended December 31, 2020.

During the year

ended December 31, 2021, the Company acquired $0.9 million in other intangible assets (December 31, 2020—$0.8 million), primarily related to

internal-use

software. The weighted average remaining amortization period for these additions is 3 years as of December 31, 2021.

Amortization expense for the year ended December 31, 2021 and 2020 was $15.4 million and $15.5 million, respectively.

The estimated amortization expense for each of the years ended December 31, as follows:



2022	$	15,375
2023		15,317
2024		15,317
2025		14,410
2026		14,410