Intangible assets are recorded at cost less accumulated amortization and impairment losses. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Amortization of definite life intangibles is recognized on a straight-line basis over their estimated useful lives. The estimated useful lives, residual values, and amortization methods are reviewed at each year end, and any changes in estimates are accounted for prospectively.

	Licenses			Customer Relationships			Non- Competition Agreements			Trademarks			Know-How			Total
Balance, December 31, 2018	$	18,741		$	2,827		$	237		$	88		$	—		$	21,893
Cannex acquisition (Note 11)		—			—			—			3,900			9,700			13,600
Om of Medicine acquisition (Note 11)		7,700			—			—			—			—			7,700
Accumulated amortization		—			(580	)		(100	)		(263	)		(808	)		(1,751	)
Impairment		(6,295	)		—			—			—			—			(6,295	)
Balance, December 31, 2019	$	20,146		$	2,247		$	137		$	3,725		$	8,892		$	35,147
Amortization expense		—			(579	)		(94	)		(377	)		(1,959	)		(3,009	)
Impairment		—			—			—			(3,348	)		—			(3,348	)
Balance, December 31, 2020	$	20,146		$	1,668		$	43		$	—		$	6,933		$	28,790

Balance, December 31, 2018	$	6,065
Cannex acquisition (Note 11)		166,557
Om acquisition (Note 11)		1,435
PHX/Greens Goddess acquisition (Note 11)		6,225
Impairment of PHX/Greens Goddess goodwill		(1,091	)
Impairment of continuing operations goodwill		(138,908	)
Balance, December 31, 2019	$	40,283
Disposal of PHX/Greens Goddess (Note 25)		(5,134	)
Tax adjustment to goodwill from Cannex acquisition		1,406
Impairment		(13,400	)
Balance, December 31, 2020	$	23,155

For the year ended December 31, 2020, the Company recorded a decrease of $5,134, from the disposal of PHX Interactive LLC/Greens Goddess Inc. (Note 25)

Goodwill is tested for impairment annually, or more frequently when events or circumstances indicate that impairment may have occurred. The Company tests impairment of goodwill in line with the two steps summarized below and further described in “Footnote 2. Significant Accounting Policies (j) Goodwill”:

In 2020, management assessed indicators of impairment and concluded the below for the respective reporting units:

Management has not identified any significant negative triggering events that would suggest it is more likely than not that impairment exists. Therefore, further analysis is not required for these Reporting Units.

Management has identified negative trigger events regarding its online CBD business. Management has concluded that the overall financial performance of the entity continues to be worse than expectation, including revenue growth, EBITDA/cash flows, and future growth projections. The Pure Ratio’s business operates at a breakeven (i.e.. Zero) profit level and is not expected to improve in the near term. As such, management has determined that the Goodwill and remaining Intangible assets associated with the Pure Ratio’s RU are impaired.

The business was purchased by 4Front in 2019 with $32,376 in goodwill allocated to the entity. An impairment charge of $18,876 was recorded against Goodwill allocated to the reporting unit in 2019 due to triggers existing that identified future financial performance would be worse than projected. As a result of the same triggers in 2020, the remaining goodwill of $13,400 and $3,348 in Trademarks were written off as of December 31, 2020

In 2019, management assessed indicators of impairment and concluded the below for the respective reporting units:

The Retail unit represented retail stores with direct sales to end consumers in multiple states. As a result of the impairment test, management concluded that the carrying value was higher than the fair value and recorded impairment losses of $13,797 during the year ended December 31, 2019 ($nil for the year ended December 31, 2018). The Company allocated the impairment loss to cannabis licenses held by continuing operations, and the remainder was fully allocated to goodwill.

Greens Goddess represents a cannabis dispensary in Arizona that was acquired by the Company in 2019. Greens Goddess was sold in 2020 for $6,000, and presented as discontinued operations. The Company used the sale price, less disposal costs as the recoverable amount at December 31, 2019. As a result of the impairment test, management concluded that the carrying value was higher than the fair value and recorded impairment losses of $1,091 during the year ended December 31, 2019. The impairment loss was fully allocated to goodwill.

Management concluded that the fair value was higher than the carrying value at December 31, 2019, and no impairment was recognized for the Ancillary Cannabis RU.

The production unit represents the Company’s operations Cannex Holdings California Inc., Illinois Grown Medicine, LLC, the production division of Healthy Pharms Inc., and the production division of Mission Massachusetts Inc. As a result of the impairment test, management concluded that the carrying value was higher than the fair value and recorded impairment losses of $112,530 during the year ended December 31, 2019. The impairment loss was fully allocated to goodwill.

Pure Ratios represents the operations of a CBD-focused wellness company. As a result of the impairment test, management concluded that the carrying value was higher than the fair value and recorded impairment losses of $18,876 during the year ended December 31, 2019. The impairment loss was fully allocated to goodwill.