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)

9 Months Ended

Sep. 30, 2023

Intangible asset balances consisted of the following:


Intangible assets	September 30, 2023		December 31, 2022
Customer relationships	$	85,300	$	85,300
Trademarks		29,000		29,000
License rights⁽¹⁾		6,540		6,540
Management agreements		—		926
Patents & technologies		32,900		32,900
Backlog and non-competition agreements		10,406		10,406
Total intangible assets, at cost		164,146		165,072
Less: Accumulated amortization		(71,927)		(62,358)
Total intangible assets, net	$	92,219	$	102,714

(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.

Schedule of Estimated Future Annual Amortization Expense

The following table outlines the estimated future annual amortization expense for intangible assets as of September 30, 2023:


	Estimated
Years ended December 31,	amortization
Remainder of 2023	$	3,239
2024		12,953
2025		12,953
2026		12,796
2027		12,796
Thereafter		31,103
	$	85,840