Intangible Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 September 30, 2023 and 2022 was $3,239 and $3,677, respectively. Amortization expense for the nine months ended September 30, 2023 and 2022 was $9,758 and $11,030, respectively. This amortization expense is included in depreciation and amortization in the condensed consolidated statements of operations and comprehensive loss. During June 2023, the Company determined that its management agreement with 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. During September 2023, the Company completed the CGSF/SFNY Divestiture. As part of this transaction, the Company derecognized the management agreement of $926 and all related amortization totaling $926, and the balance no longer exists. The following table outlines the estimated future annual amortization expense for intangible assets as of September 30, 2023:
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