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INTANGIBLE ASSETS AND GOODWILL
 12 Months Ended
Dec. 31, 2021
INTANGIBLE ASSETS AND GOODWILL  
Intangible Assets And Goodwill

12. INTANGIBLE ASSETS AND GOODWILL

 

A continuity of intangible assets for the years ended December 31, 2021 and 2020 is as follows:

 

In Thousands of United States dollars

 

License

 

 

Customer Relationships

 

 

Trademarks and Brands

 

 

Goodwill

 

 

Total

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2020

 

$272

 

 

$-

 

 

$-

 

 

$-

 

 

$272

 

Acquired through business combinations (Note 11)

 

 

138

 

 

 

189

 

 

 

121

 

 

 

2,247

 

 

 

2,695

 

Impairment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,816)

 

 

(1,816)

At December 31, 2020

 

$410

 

 

$189

 

 

$121

 

 

$431

 

 

$1,151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2020

 

$11

 

 

$-

 

 

$-

 

 

$-

 

 

$11

 

Additions

 

 

53

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

53

 

At December 31, 2020

 

$64

 

 

$-

 

 

$-

 

 

$-

 

 

$64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency translation

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

Net book value at December 31, 2020

 

$348

 

 

$189

 

 

$121

 

 

$431

 

 

$1,089

 

 

Thousands of United States dollars

 

License

 

 

Customer Relationships

 

 

Trademarks and Brands

 

 

Patents

 

 

Non-Compete Agreements

 

 

Goodwill

 

 

Total

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2021

 

$410

 

 

$189

 

 

$121

 

 

$-

 

 

$-

 

 

 

431

 

 

$1,151

 

Additions

 

 

200

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

200

 

Acquired through business combinations (Note 11)

 

 

-

 

 

 

1,570

 

 

 

2,090

 

 

 

4,300

 

 

 

1,190

 

 

 

19,675

 

 

 

28,825

 

Impairment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(51)

 

 

(51)

At December 31, 2021

 

$610

 

 

$1,759

 

 

$2,211

 

 

$4,300

 

 

$1,190

 

 

$20,054

 

 

$30,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2021

 

$64

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$64

 

Additions

 

 

65

 

 

 

26

 

 

 

35

 

 

 

48

 

 

 

66

 

 

 

-

 

 

 

240

 

At December 31, 2021

 

$129

 

 

$26

 

 

$35

 

 

$48

 

 

$66

 

 

$-

 

 

$304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency translation

 

 

(30)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(30)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net book value at December 31, 2021

 

$451

 

 

$1,733

 

 

$2,176

 

 

$4,252

 

 

$1,124

 

 

$20,054

 

 

$29,790

 

 

The Company’s intangible assets acquired in 2020 consist of customer relationships, tradenames/brands and licenses and certifications for formulations due to the acquisitions of Kasa, Breeze and Cronomed.

The Company’s intangible asset additions in 2021 primarily consist of assets acquired as part of the November 2021 purchase of Vessel (Note 11) and intellectual property for cannabis industry education materials purchased from a third party categorized under licenses. The 2021 additions to license are being amortized over its estimated useful life of 36 months, with 35 months remaining as at December 31, 2021. Information regarding the significant Vessel intangible assets within the indicated categories of the table above is as follows as at December 31, 2021:

 

 

·

Tradenames and brands: carrying amount $2.1 million with 94 months of remaining amortization period

 

·

Patents and developed technology: carrying amount $4.3 million with 106 months of remaining amortization period

 

·

Noncompete agreement: carrying amount $1.1 million with 34 months of remaining amortization period

 

·

Customer relationships: carrying amount $1.5 million with 118 month of remaining amortization period

 

The Company’s goodwill is assigned to the following CGU’s for the years ended December 31, 2020 and 2021:

 

In Thousands of United States dollars

 

 Pharmaceuticals and nutraceuticals

 

 

 Food and beverage

 

 

 Vessel

 

 

 Total

 

As at January 1, 2020

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Acquired through business combinations (Note 11)

 

 

1,413

 

 

 

834

 

 

 

-

 

 

 

2,247

 

Impairment

 

 

(1,033)

 

 

(783)

 

 

-

 

 

 

(1,816)

As at December 31, 2020

 

$380

 

 

$51

 

 

$-

 

 

$431

 

Acquired through business combinations (Note 11)

 

$-

 

 

$-

 

 

$19,675

 

 

$19,675

 

Impairment

 

 

-

 

 

 

(51)

 

 

-

 

 

 

(51)

Foreign exchange impacts

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

As at December 31, 2021

 

$380

 

 

$-

 

 

$19,675

 

 

$20,054

 

 

There was no accumulated impairment of goodwill or other intangible assets on or prior to January 1, 2020. Subsequent impairment amounts are shown in the table above.