Intangible Assets And Goodwill

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

5. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Intangible assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Amortization of definite life intangibles is provided 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.

At September 30, 2021 and December 31, 2020, intangible assets consisted of the following:


	September 30, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Licenses and Permits	$	515,368,694	$	59,514,065	$	455,854,629	$	343,135,736	$	41,993,595	$	301,142,141
Trademarks		98,935,601		22,174,913		76,760,688		99,295,599		13,455,178		85,840,421
Customer Relationships		24,438,000		9,071,493		15,366,507		25,258,000		7,583,005		17,674,995
Non-Competition Agreements		2,565,000		1,362,472		1,202,528		2,585,480		1,001,003		1,584,477
Total Intangible Assets	$	641,307,295	$	92,122,943	$	549,184,352	$	470,274,815	$	64,032,781	$	406,242,034

The Company recorded amortization expense for the three and nine months ended September 30, 2021 of $10,937,748 and $30,984,139, respectively. The Company recorded amortization expense for the three and nine months ended September 30, 2020 of $9,531,290 and $27,286,390, respectively.

The following table outlines the estimated annual amortization expense related to intangible assets as of September 30, 2021:


Year Ending December 31,	Estimated Amortization
Remainder of 2021	$	12,527,442
2022		50,079,212
2023		50,076,435
2024		49,495,101
2025		49,397,435
Thereafter		337,608,727
	$	549,184,352

As of September 30, 2021, the weighted average amortization period remaining for intangible assets was 12.35 years.

Goodwill

At September 30, 2021 and December 31, 2020 the balances of goodwill, by segment, consisted of the following:


	Retail	Consumer Package Goods	Total
As of December 31, 2020	130,680,935	252,016,532	382,697,467
Acquisition of Dharma Pharmaceuticals, LLC	43,378,626	45,352,026	88,730,652
Acquisition of Summit Medical Compassion Center, Inc.	47,864,947	21,164,344	69,029,291
Other Acquisitions	34,048,860	32,127,684	66,176,544
Adjustments to Purchase Price Allocations	(9,150,000)	—	(9,150,000)
As of September 30, 2021	$246,823,368	$350,660,586	$597,483,954

During the third quarter 2021, the Company made immaterial adjustments to the purchase price allocations associated with previously acquired entities that resulted in a reduction to goodwill and a corresponding reduction to deferred tax liabilities.