XML 34 R18.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Intangible Assets
 12 Months Ended
Dec. 31, 2023
Intangible Assets [Abstract]  
Intangible Assets

11.    Intangible Assets

Cost:

  

Software

  

Licences

  

Total

Balance, December 31, 2021

  

$

—

  

$

389,456

 

  

$

389,456

 

Acquisitions (note 4)

  

 

17,548

  

 

24,648,224

 

  

 

24,665,772

 

Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd.

  

 

—

  

 

(350,670

)

  

 

(350,670

)

Movement in exchange rates

  

 

633

  

 

(23,521

)

  

 

(22,888

)

Balance, December 31, 2022

  

 

18,181

  

 

24,663,489

 

  

 

24,681,670

 

Movement in exchange rates

  

 

1,373

  

 

809

 

  

 

2,182

 

Balance, December 31, 2023

  

$

19,554

  

$

24,664,298

 

  

$

24,683,852

 

Accumulated amortization:

  

Software

  

Licences

  

Total

Balance, December 31, 2021

  

$

—

  

$

130,354

 

  

$

130,354

 

Amortization

  

 

7,550

  

 

2,464,822

 

  

 

2,472,372

 

Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd.

  

 

—

  

 

(140,268

)

  

 

(140,268

)

Movement in exchange rates

  

 

704

  

 

9,914

 

  

 

10,618

 

Balance, December 31, 2022

  

 

8,254

  

 

2,464,822

 

  

 

2,473,076

 

Amortization

  

 

7,525

  

 

2,464,823

 

  

 

2,472,348

 

Movement in exchange rates

  

 

1,213

  

 

—

 

  

 

1,213

 

Balance, December 31, 2023

  

$

16,992

  

$

4,929,645

 

  

$

4,946,637

 

Impairment:

  

Software

  

Licences

  

Total

Balance, December 31, 2022 and 2021

  

$

—

  

$

—

  

$

—

Impairment

  

 

2,070

  

 

15,935,463

  

 

15,937,533

Balance, December 31, 2023

  

$

2,070

  

$

15,935,463

  

$

15,937,533

Net book value

  

Software

  

Licences

  

Total

Balance, December 31, 2022

  

$

9,927

  

$

22,198,667

  

$

22,208,594

Balance, December 31, 2023

  

$

492

  

$

3,799,190

  

$

3,799,682

The Company’s intangible assets consists of computer software program with a carrying value of $492 (2022 — $9,927), and licenses consisting of a cannabis distribution license with a carrying value of $16,073 at December 31, 2023 (2022 — $15,264) and a cannabis API manufacturing and GMP license with a carrying value of $3,783,117 (2022 — $22,183,403). During the year ended December 31, 2022, the Company derecognized a cannabis operator’s license with a net book value of $210,402 in connection with the loss of control of Bophelo Bio Science and Wellness (Pty) Ltd. (note 4). The Company considered indicators of impairment at December 31, 2023 and 2022.

Pursuant to the Company’s upcoming sale of RPK (note 23), its Portuguese subsidiary, the Company impaired a portion of its intangible assets and recognized an impairment loss of $15,937,533 in the consolidated statements of loss and comprehensive loss during the year ended December 31, 2023.

At December 31, 2023, the remaining useful life of the Company’s finite life intangible assets is approximately 1.5 years. The Company’s cannabis distribution license has been classified as an indefinite-life intangible asset as the Company expects to maintain this asset and the end point of the useful life of such asset cannot be determined. The Company evaluates the assumption of the indefinite life of the cannabis distribution license at least annually.