As of June 30, 2022, the Company recognized macroeconomic challenges in the U.S. CBD market, including a decrease in market capitalization of CBD companies and transaction multiplies. Based on those qualitative factors, the Company concluded that its U.S. Cannabis segment more likely than not was impaired and tested that segment’s assets, including goodwill and intangible assets for impairment.

The U.S. Cannabis segment’s net working capital assets are readily monetized and therefore book value is deemed to represent its fair value. It’s ROU asset and associated liability are primarily based on the lease arrangement and the incremental borrowing rate and deemed to represent fair value. Brand was tested using a relief from royalty method, using a pre-tax royalty rate of 4% and brand maintenance of 2.45%. In assessing goodwill, the Company used a market based approach using a multiple of 1.6x revenue.

The tests resulted in the Company recognizing impairment charges to goodwill of ($25,169) and its brand intangible asset of ($4,630).

The following table presents the changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2022 :

	Cannabis - Canada		Cannabis - United States			Total
Balance as of December 31, 2021	$	57,525	$	60,008		$	117,533
Foreign currency translation adjustment		279		—			279
Impairments		—		(25,169	)		(25,169	)
Balance as of June 30, 2022	$	57,804	$	34,839		$	92,643

Classification	June 30, 2022			December 31, 2021
Licenses	$	12,643		$	12,835
Brand and trademarks*		12,895			12,951
Computer Software		2,000			2,014
Other*		144			144
Less: Accumulated amortization		(2,096	)		(1,550	)
Less: Impairments		(4,630	)		—
Intangibles, net	$	20,956		$	26,394

The expected future amortization expense for definite-lived intangible assets as of June 30, 2022 was as follows:

Fiscal period
Remainder of 2022	$	562
2023		895
2024		762
2025		672
2026		578
Thereafter		9,078
Intangibles, net	$	12,547