Intangible Assets |
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| Intangible Assets |
7. Intangible Assets Intangible asset balances consisted of the following:
(1)License rights primarily consists of 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 — Basis of Presentation and 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, 2022 and 2021 filed on Form 10-K for further information pertaining to the Company’s accounting policies for its intangible assets.
Amortization expense for the three months ended June 30, 2023 and 2022, was $3,255 and $3,677, respectively. Amortization expense for the six months ended June 30, 2023 and 2022 was $6,519 and $7,353, respectively. This amortization expense is included in depreciation and amortization in the condensed consolidated statements of operations and comprehensive loss. During the three months ended June 30, 2023, the Company determined that its management agreement with CGSF Group, LLC (“CGSF”) was impaired. As a result, the Company recognized an impairment loss of $737 to bring the carrying value of the management agreement intangible asset to zero. This loss is included in impairment loss and loss on disposal of assets in the condensed consolidated statements of operations and comprehensive loss. The following table outlines the estimated future annual amortization expense for intangible assets as of June 30, 2023:
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