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