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GOODWILL | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL |
6. GOODWILL
The Company’s assets are aggregated into two reportable segments: Cultivation (Wholesale) and Retail. The changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2024 and 2023 were as follows:
| January 1, 2024 |  | Impairment |  | Adjustments to purchase price allocation |  | Acquisitions |  | December 31, 2024
Cultivation | $ | 49,318 |  |  | $ | (8,179) |  |  | $ | 2,648 |  |  | $ | 4,810 |  |  | $ | 48,597 |
Retail | 181,973 |  |  | — |  |  | (421) |  |  | 16,081 |  |  | 197,633 |
| $ | 231,291 |  |  | $ | (8,179) |  |  | $ | 2,227 |  |  | $ | 20,891 |  |  | $ | 246,230 |
| January 1, 2023 |  | Impairment |  | Adjustments to purchase price allocation |  | Acquisitions |  | December 31, 2023
Cultivation | $ | 83,004 |  |  | $ | (33,686) |  |  | $ | — |  |  | $ | — |  |  | $ | 49,318 |
Retail(1) | 186,084 |  |  | (4,245) |  |  | 134 |  |  | — |  |  | 181,973 |
| $ | 269,088 |  |  | $ | (37,931) |  |  | $ | 134 |  |  | $ | — |  |  | $ | 231,291 |
(1) One of the Company’s reporting units, with $1,293 of allocated goodwill, had a negative carrying value as of December 31, 2023. As part of the Company’s acquisition activity related to 203 Organix L.L.C., Salubrious Wellness Clinic, Inc. and Columbia Care Eastern Virginia LLC (collectively the “2024 Business Combinations”), the Company recorded goodwill to the cultivation (wholesale) reportable segment of $4,810 and recorded goodwill to the retail reportable segment of $16,081 during the year ended December 31, 2024. Refer to Note 8 - Transactions for further discussion regarding the 2024 Business Combinations. During the year ended December 31, 2024 the Company recorded measurement period adjustments in connection with the 2024 Business Combinations. The net impact led to an increase in goodwill related to the cultivation (wholesale) reportable segment of $2,648 and a decrease in goodwill related to the retail reportable segment of $421, for changes to inventory, fixed assets, intangible assets, other assets and deferred tax liabilities. During the year ended December 31, 2024, the Company recognized impairment charges of $8,179 associated with its Arizona cultivation (wholesale) reporting unit. As of December 31, 2024, and after recognizing the aforementioned impairment charges, the cultivation reporting unit was fully impaired. During the year ended December 31, 2023, the Company recognized impairment charges of (i) $33,622 associated with its Arizona cultivation (wholesale) reporting unit, (ii) $4,245 associated with its Nevada retail reporting unit, and (iii) $64 associated with its Massachusetts cultivation (wholesale) reporting unit as the carrying values of the reporting units exceeded the estimated fair value by such amounts. The impairment charges recorded for these reporting units was driven largely by fluctuations in underlying valuation assumptions related to working capital requirements of a market participant at each reporting unit, which are an input into the discounted cash flow analysis used to estimate the fair value of each of the three reporting units noted above. As of December 31, 2023, and after recognizing the aforementioned impairment charges, the remaining carrying value of goodwill for the Arizona cultivation reporting unit was $8,179, and the carrying value of goodwill for the Nevada retail and Massachusetts cultivation reporting units were fully impaired.
6. GOODWILL (Continued)
During the year ended December 31, 2022, the Company recognized an impairment charge of (i) $46,537 associated with its Arizona retail reporting unit, (ii) $2,252 associated with its Arizona cultivation (wholesale) reporting unit, (iii) $61,127 associated with its Pennsylvania retail reporting unit, and (iv) $3,115 associated with its Pennsylvania cultivation (wholesale) reporting unit, as the carrying values of the reporting units exceeded the estimated fair value by such amounts. During the year ended December 31, 2022, the carrying value of goodwill for the Arizona cultivation reporting unit is $41,801, and the goodwill for the Arizona retail, Pennsylvania retail and Pennsylvania cultivation reporting units were fully impaired. During the year ended December 31, 2023, the Company recorded a measurement period adjustment in connection with the September 7, 2022 acquisition of WSCC, Inc. (“Sierra Well”), which led to a net increase of $134 to goodwill. The Company obtained additional information about the facts and circumstances that existed at the time of the acquisition date that led to changes in provisional amounts recognized in the initial opening financials for income taxes.

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