TILT Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets (Tables)

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

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

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(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.

Schedule of estimated future annual amortization expense

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