UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
For the quarterly period ended
OR
Commission file number
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. employer identification no.) |
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(Address of principal executive offices) |
(zip code) |
Registrant’s telephone number, including area code - (
Securities registered pursuant to Section 12(g) of the Act:
(Title of each Class)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No
As of November 1, 2024 there were
GREEN THUMB INDUSTRIES INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024
TABLE OF CONTENTS
FINANCIAL INFORMATION |
Page |
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Part I |
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Unaudited Interim Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 |
4 |
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Unaudited Interim Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 |
5 |
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Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2024 and 2023 |
6 |
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Unaudited Interim Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 |
8 |
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Notes to Unaudited Interim Condensed Consolidated Financial Statements |
10 |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
29 |
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Quantitative and Qualitative Disclosure About Market Risk |
37 |
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Controls and Procedures |
37 |
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OTHER INFORMATION |
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Legal Proceedings |
38 |
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Risk Factors |
38 |
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Unregistered Sales of Equity Securities and Use of Proceeds |
38 |
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Defaults Upon Senior Securities |
38 |
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Mine Safety Disclosures |
39 |
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Other Information |
39 |
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Exhibits |
40 |
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41 |
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Use of Names
In this Quarterly Report on Form 10-Q, unless the context otherwise requires, the terms “we,” “us,” “our,” “Company,” “Corporation” or “Green Thumb” refer to Green Thumb Industries Inc. together with its wholly-owned subsidiaries.
Currency
Unless otherwise indicated, all references to “$” or “US$” in this document refer to United States dollars, and all references to “C$” refer to Canadian dollars.
Disclosure Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains statements that we believe are, or may be considered to be, “forward-looking statements.” All statements other than statements of historical fact included in this document regarding the prospects of our industry or our prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “may,” “will,” “expect,” “intend,” “estimate,” “foresee,” “project,” “anticipate,” “believe,” “plan,” “forecast,” “continue” or “could” or the negative of these terms or variations of them or similar terms or expressions of similar meaning. Furthermore, forward-looking statements may be included in various filings that we make with the Securities and Exchange Commission (the “SEC”), and in press releases or oral statements made by or with the approval of one of our authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These known and unknown risks include, without limitation: cannabis remains illegal under U.S. federal law, and enforcement of cannabis laws could change; state regulation of cannabis is uncertain; the Company may not be able to obtain or maintain necessary permits and authorizations; the Company may be subject to heightened scrutiny by Canadian regulatory authorities; the Company may face limitations on ownership of cannabis licenses; the Company may become subject to U.S. Food and Drug Administration or the U.S. Bureau of Alcohol, Tobacco Firearms and Explosives regulation; as a cannabis business, the Company is subject to applicable anti-money laundering laws and regulations and has restricted access to banking and other financial services; the Company may face difficulties acquiring additional financing; the Company lacks access to U.S. bankruptcy protections; the Company operates in a highly regulated sector and may not always succeed in complying fully with application regulatory requirements in all jurisdictions where the Company carries business; the Company faces intense competition; the Company faces competition from the illicit market as well as actual or purported Farm Bill compliant hemp products; the Company is dependent upon the popularity and consumer acceptance of its brand portfolio; the Company has limited trademark protection; cannabis businesses are subject to unfavorable tax treatment and may incur significant tax liability; the Company is subject to proceeds of crime statutes; the Company faces exposure to fraudulent or illegal activity; the Company faces risks due to industry immaturity or limited comparable, competitive or established industry best practices; the Company faces risks related to its products; the Company’s business is subject to the risks inherent in agricultural operations; the Company may adversely be impacted by rising or volatile energy costs and availability; the Company faces risks related to its information technology systems and potential cyber-attacks and security breaches; the Company relies on third-party software providers for numerous capabilities that it depends upon to operate, and a disruption of one or more systems could adversely affect the business; the Company relies on the expertise of the Company management team and other employees experienced in the cannabis industry, and the loss of key personnel could negatively affect the Company’s business, financial condition and results of operations; the Company faces an inherent risk of product liability or similar claims; the Company’s products may be subject to product recalls; the Company may face unfavorable publicity or consumer perception; and the Company’s voting control is concentrated; the Company’s capital structure and voting control may cause unpredictability; sales of substantial amounts of Subordinate Voting Shares by our shareholders in the public market may have an adverse effect on the market price of our Subordinate Voting Shares and could affect the Company’s business and financial condition and the results of operations. These and other risks are further described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and elsewhere in the Company’s filings with the SEC, which are available on the SEC’s website or at https://investors.gtigrows.com. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this document, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this document.
3
Green Thumb Industries Inc.
Unaudited Interim Condensed Consolidated Balance Sheets
As of September 30, 2024 and December 31, 2023
(Amounts Expressed in United States Dollars)
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September 30, |
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December 31, |
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2024 |
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2023 |
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(Audited) |
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(in thousands) |
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ASSETS |
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Current Assets: |
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Cash and Cash Equivalents |
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$ |
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$ |
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Accounts Receivable, Net |
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Income Tax Receivable |
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Inventories, Net |
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Prepaid Expenses |
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Other Current Assets |
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Total Current Assets |
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Property and Equipment, Net |
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Right of Use Assets, Net |
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Investments |
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Investments in Associates |
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Note Receivable |
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Intangible Assets, Net |
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Goodwill |
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Deferred Tax Assets |
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Deposits and Other Assets |
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TOTAL ASSETS |
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$ |
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$ |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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LIABILITIES |
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Current Liabilities: |
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Accounts Payable |
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$ |
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$ |
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Accrued Liabilities |
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Compensation Payable |
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Current Portion of Notes Payable |
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Current Portion of Lease Liabilities |
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Income Tax Payable |
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Total Current Liabilities |
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Long-Term Liabilities: |
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Lease Liabilities, Net of Current Portion |
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Notes Payable, Net of Current Portion and Debt Discount |
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Contingent Consideration Payable |
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Deferred Income Taxes |
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TOTAL LIABILITIES |
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SHAREHOLDERS' EQUITY |
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Subordinate Voting Shares (Shares Authorized, Issued and Outstanding at September 30, 2024: |
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— |
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— |
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Multiple Voting Shares (Shares Authorized, Issued and Outstanding at September 30, 2024: |
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— |
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— |
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Super Voting Shares (Shares Authorized, Issued and Outstanding at September 30, 2024: |
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— |
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— |
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Share Capital |
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Contributed (Deficit) Surplus |
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( |
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Deferred Share Issuances |
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Accumulated Earnings (Deficit) |
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( |
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Equity of Green Thumb Industries Inc. |
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Noncontrolling interests |
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( |
) |
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TOTAL SHAREHOLDERS' EQUITY |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
4
Green Thumb Industries Inc.
Unaudited Interim Condensed Consolidated Statements of Operations
Three and Nine Months Ended September 30, 2024 and 2023
(Amounts Expressed in United States Dollars, Except Share Amounts)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(in thousands) |
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(in thousands) |
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Revenues, Net of Discounts |
$ |
$ |
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$ |
$ |
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Cost of Goods Sold |
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( |
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( |
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( |
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( |
Gross Profit |
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Expenses: |
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Selling, General, and Administrative |
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Total Expenses |
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Income From Operations |
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Other Income (Expense): |
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Other (Expense) Income, Net |
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( |
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( |
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Interest Income, Net |
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Interest Expense, Net |
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( |
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( |
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( |
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( |
Total Other Expense |
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( |
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( |
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( |
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( |
Income Before Provision for Income Taxes And Non-Controlling Interest |
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Provision For Income Taxes |
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Net Income Before Non-Controlling Interest |
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Net Income Attributable to Non-Controlling Interest |
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Net Income Attributable To Green Thumb Industries Inc. |
$ |
$ |
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$ |
$ |
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Net Income Per Share - Basic |
$ |
$ |
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$ |
$ |
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Net Income Per Share - Diluted |
$ |
$ |
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$ |
$ |
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Weighted Average Number of Shares Outstanding - Basic |
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Weighted average Number of Shares Outstanding - Diluted |
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The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
5
Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity
Three and Nine Months Ended September 30, 2024 and 2023
(Amounts Expressed in United States Dollars)
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Share |
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Contributed |
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Deferred Share |
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Accumulated |
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Non-Controlling |
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Total |
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(in thousands) |
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Balance, July 1, 2023 |
$ |
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$ |
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$ |
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$ |
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( |
) |
$ |
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$ |
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Distribution of contingent consideration |
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— |
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— |
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— |
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— |
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Exercise of options, RSUs |
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( |
) |
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— |
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— |
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— |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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Distributions to non-controlling interest holders |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
Repurchase of Subordinate Voting Shares |
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— |
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( |
) |
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— |
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— |
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— |
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( |
) |
Net income |
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— |
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— |
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— |
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Balance, September 30, 2023 |
$ |
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$ |
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$ |
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$ |
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( |
) |
$ |
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$ |
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Balance, January 1, 2023 |
$ |
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$ |
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$ |
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$ |
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( |
) |
$ |
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$ |
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Issuance of deferred shares |
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— |
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( |
) |
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— |
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— |
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— |
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Distribution of contingent consideration |
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— |
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— |
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— |
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— |
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Indemnification of deferred shares associated with post acquisition costs |
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— |
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— |
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( |
) |
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— |
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— |
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( |
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Exercise of options and RSUs |
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( |
) |
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— |
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— |
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— |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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Distributions to non-controlling interest holders |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
Repurchase of Subordinate Voting Shares |
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— |
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( |
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— |
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— |
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— |
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( |
) |
Net income |
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— |
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— |
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— |
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Balance, September 30, 2023 |
$ |
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$ |
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$ |
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$ |
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( |
) |
$ |
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$ |
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|||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
6
Green Thumb Industries Inc.
Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity
Three and Nine Months Ended September 30, 2024 and 2023
(Amounts Expressed in United States Dollars)
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Share |
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Contributed |
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Deferred Share |
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Accumulated |
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Non-Controlling |
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Total |
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(in thousands) |
||||||||||
Balance, July 1, 2024 |
$ |
$ |
( |
$ |
$ |
$ |
$ |
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Exercise of options and RSUs |
|
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( |
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— |
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— |
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— |
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Options exercised through net share settlement |
|
( |
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— |
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— |
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— |
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— |
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( |
Stock-based compensation |
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— |
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— |
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— |
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— |
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Distributions to non-controlling interest holders |
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— |
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— |
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— |
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— |
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( |
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( |
Net income |
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— |
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— |
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— |
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Balance, September 30, 2024 |
$ |
$ |
( |
$ |
$ |
$ |
( |
$ |
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Balance, January 1, 2024 |
$ |
$ |
$ |
$ |
( |
$ |
$ |
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Distribution of contingent consideration |
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— |
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— |
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— |
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— |
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Exercise of options and RSUs |
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( |
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— |
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— |
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— |
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Options exercised through net share settlement |
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( |
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— |
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— |
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— |
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( |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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Distributions to non-controlling interest holders |
|
— |
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— |
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— |
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— |
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( |
|
( |
Repurchase of Subordinate Voting Shares |
|
— |
|
( |
|
— |
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— |
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— |
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( |
Net income |
|
— |
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— |
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— |
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|||
Balance, September 30, 2024 |
$ |
$ |
( |
$ |
$ |
$ |
( |
$ |
||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
7
Green Thumb Industries Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2024 and 2023
(Amounts Expressed in United States Dollars)
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Nine Months Ended September 30, |
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2024 |
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2023 |
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(in thousands) |
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CASH FLOW FROM OPERATING ACTIVITIES |
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Net income attributable to Green Thumb Industries Inc. |
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$ |
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$ |
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Net income attributable to non-controlling interest |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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Amortization of operating lease right of use assets |
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Loss on disposal of property and equipment |
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Impairment of long-lived property and equipment |
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Loss on equity method investments |
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Loss from lease modification |
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Stock-based compensation |
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(Increase) decrease in fair value of investments |
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( |
) |
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Gain on settlement of contingent consideration |
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( |
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Increase in fair value of contingent consideration |
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Decrease in fair value of warrants |
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( |
) |
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( |
) |
Gain on indemnification of deferred shares associated with post acquisition costs |
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( |
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Amortization of debt discount |
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Changes in operating assets and liabilities: |
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Accounts receivable, net |
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( |
) |
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( |
) |
Inventories, net |
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( |
) |
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( |
) |
Prepaid expenses and other current assets |
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( |
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Deposits and other assets |
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Accounts payable |
|
|
( |
) |
|
|
|
|
Accrued liabilities |
|
|
|
|
|
|
||
Operating lease liabilities |
|
|
( |
) |
|
|
( |
) |
Income tax receivable and payable, net |
|
|
|
|
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
|
|
|
|
||
CASH FLOW FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
( |
) |
|
|
( |
) |
Proceeds from disposal of property and equipment |
|
|
|
|
|
|
||
Investments in securities and associates |
|
|
( |
) |
|
|
( |
) |
Proceeds from equity investments and notes receivable |
|
|
|
|
|
|
||
NET CASH USED IN INVESTING ACTIVITIES |
|
|
( |
) |
|
|
( |
) |
CASH FLOW FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Distributions to non-controlling interest holders |
|
|
( |
) |
|
|
( |
) |
Repurchase of Subordinate Voting Shares |
|
|
( |
) |
|
|
( |
) |
Payments for taxes related to net share settlement of equity awards |
|
|
( |
) |
|
|
|
|
Proceeds from exercise of options and RSUs |
|
|
|
|
|
|
||
Proceeds from issuance of notes payable |
|
|
|
|
|
|
||
Principal repayment of notes payable |
|
|
( |
) |
|
|
( |
) |
NET CASH USED IN FINANCING ACTIVITIES |
|
|
( |
) |
|
|
( |
) |
CASH AND CASH EQUIVALENTS: |
|
|
|
|
|
|
||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
|
|
|
( |
) |
|
CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD |
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS END OF PERIOD |
|
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
8
Green Thumb Industries Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2024 and 2023
(Amounts Expressed in United States Dollars)
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
(in thousands) |
|
|||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
|
|
||
Interest paid |
|
$ |
|
|
$ |
|
||
NONCASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Accrued capital expenditures |
|
$ |
|
|
$ |
( |
) |
|
Noncash increase in right of use asset |
|
$ |
( |
) |
|
$ |
( |
) |
Noncash increase in lease liability |
|
$ |
|
|
$ |
|
||
Issuance of shares associated with contingent consideration |
|
$ |
|
|
$ |
|
||
Deferred share distributions |
|
$ |
|
|
$ |
( |
) |
|
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements
9
Green Thumb Industries Inc.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
(Amounts Expressed in United States Dollars, Except Where Stated Otherwise)
1. Overview and Basis of Presentation
(a) Description of Business
Green Thumb Industries Inc. (“Green Thumb,” the “Company,” “we” or “us”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while being committed to community and sustainable, profitable growth. Green Thumb owns, manufactures, and distributes a portfolio of cannabis consumer packaged goods brands including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles, and RYTHM, to third-party retail stores across the United States as well as to Green Thumb owned retail locations. The Company also owns and operates retail cannabis stores that include a national chain named RISE Dispensaries that sell our products and third-party products. As of September 30, 2024, Green Thumb has revenue in fourteen markets (California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia), employs approximately 4,800 people and serves millions of patients and customers annually.
The Company’s registered office is located at 250 Howe Street, 20th Floor, Vancouver, British Columbia, V6C 3R8. The Company’s U.S. headquarters are at 325 W. Huron St., Suite 700, Chicago, IL 60654.
(b)
The accompanying unaudited interim condensed consolidated financial statements include the accounts of Green Thumb and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the U.S. Securities & Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and, accordingly, certain information, footnotes and disclosures normally included in the annual financial statements, prepared in accordance with GAAP, have been condensed or omitted in accordance with SEC rules and regulations. The financial data presented herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). In the opinion of management, the financial data presented includes all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. Certain previously reported amounts have been reclassified between line items to conform to the current period presentation. Results of interim periods should not be considered indicative of the results for the full year. These unaudited interim condensed consolidated financial statements include estimates and assumptions of management that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ from these estimates.
(c)
There have been no changes to the Company’s significant accounting policies as described in Note 2 to the Company's Consolidated Financial Statements included in the 2023 Form 10-K.
(d)
Basic earnings per share is calculated using the treasury stock method, by dividing the net earnings attributable to shareholders by the weighted average number of common shares outstanding during each of the periods presented. Contingently issuable shares (including shares held in escrow) are not considered outstanding common shares and consequently are not included in the earnings per share calculation. Diluted earnings per share is calculated using the treasury stock method by adjusting the weighted average number of common shares outstanding to assume conversion of all dilutive potential common shares. The Company has three categories of potentially dilutive common share equivalents: restricted stock units, stock options and warrants. As of September 30, 2024, the Company had
10
Green Thumb Industries Inc.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
(Amounts Expressed in United States Dollars, Except Where Stated Otherwise)
1. Overview and Basis of Presentation (Continued)
(d)
In order to determine diluted earnings per share, it is assumed that any proceeds from the vesting of dilutive unvested restricted stock units, or exercise of unvested stock options and warrants would be used to repurchase common shares at the average market price during the period. Under the treasury stock method, the diluted earnings per share calculation excludes any potential conversion of stock options and convertible debt that would increase earnings per share or decrease loss per share. For the three months ended September 30, 2024, the computation of diluted earnings per share included
(e)
The Company reviews recently issued accounting standards on a quarterly basis and has determined there are no other standards yet to be adopted which are relevant to the business for disclosure.
11
Green Thumb Industries Inc.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
(Amounts Expressed in United States Dollars, Except Where Stated Otherwise)
2. INVENTORIES
The Company’s inventories include the following at September 30, 2024 and December 31, 2023:
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
(in thousands) |
||
Raw Material |
$ |
$ |
||
Packaging and Miscellaneous |
|
|
||
Work in Process |
|
|
||
Finished Goods |
|
|
||
Reserve for Obsolete Inventory |
|
( |
|
( |
Total Inventories, Net |
$ |
$ |
||
3. PROPERTY AND EQUIPMENT
At September 30, 2024 and December 31, 2023, property and equipment consisted of the following:
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
(in thousands) |
||
Buildings and Improvements |
$ |
$ |
||
Equipment, Computers and Furniture |
|
|
||
Leasehold Improvements |
|
|
||
Land |
|
|
||
Land Improvements |
|
|
||
Assets Under Construction |
|
|
||
Capitalized Interest |
|
|
||
Total Property and Equipment |
|
|
||
Less: Accumulated Depreciation |
|
( |
|
( |
Property and Equipment, net |
$ |
$ |
||
Assets under construction represent costs associated with construction projects on cultivation and production facilities and retail stores as well as costs associated with internal-use software not yet placed in service.
Depreciation expense for the three and nine months ended September 30, 2024 totaled $
12
Green Thumb Industries Inc.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
(Amounts Expressed in United States Dollars, Except Where Stated Otherwise)
4. INTANGIBLE ASSETS AND GOODWILL
(a) Intangible Assets
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 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, 2024 and December 31, 2023, intangible assets consisted of the following:
|
|
September 30, 2024 |
|
December 31, 2023 |
||||||||
|
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Net Book Value |
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Net Book Value |
|
|
(in thousands) |
|
(in thousands) |
||||||||
Licenses and Permits |
$ |
$ |
$ |
$ |
$ |
$ |
||||||
Trademarks |
|
|
|
|
|
|
||||||
Customer Relationships |
|
|
|
|
|
|
||||||
Non-Competition Agreements |
|
|
|
|
|
|
||||||
Total Intangible Assets |
$ |
$ |
$ |
$ |
$ |
$ |
||||||
The Company recorded amortization expense for the three and nine months ended September 30, 2024 of $
The following table outlines the estimated annual amortization expense related to intangible assets as of September 30, 2024:
|
|
Estimated |
Year Ending December 31, |
|
(in thousands) |
Remainder of 2024 |
$ |
|
2025 |
|
|
2026 |
|
|
2027 |
|
|
2028 |
|
|
2029 and Thereafter |
|
|
|
$ |
As of September 30, 2024, the weighted average amortization period remaining for intangible assets was
(b) Goodwill
At September 30, 2024 and December 31, 2023 the balances of goodwill, by segment, consisted of the following:
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
(in thousands) |
||
Retail |
$ |
$ |
||
Consumer Packaged Goods |
|
|
||
Total |
$ |
$ |
||
Goodwill is recognized net of accumulated impairment losses of $
13
14Green Thumb Industries Inc.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
(Amounts Expressed in United States Dollars, Except Where Stated Otherwise)
5. INVESTMENTS
As of September 30, 2024 and December 31, 2023, the Company held various equity interests in cannabis-related companies as well as investments in note(s) receivable instruments that had a combined fair value of $
The following table summarizes the changes in the Company’s investments during the nine months ended September 30, 2024 and year ended December 31, 2023:
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
(in thousands) |
||
Beginning |
$ |
$ |
||
Additions |
|
|
||
Proceeds |
|
( |
|
( |
Fair value adjustment |
|
|
( |
|
Transfers and other |
|
|
( |
|
Ending |
$ |
$ |
||
The following table summarizes the change in fair value associated with the Company's equity investments and notes receivable instruments recorded during the three and nine months ended September 30, 2024 and 2023.
|
Three Months Ended September 30, |
||||||||