Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

v3.23.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Note 7 – Property, Plant and Equipment

 
 
  
As of December 31, 2022
 
 
  
Cost
 
  
Accumulated
Depreciation
 
  
Net Book
Value
 
Buildings
  
$
 
75,359
 
  
$
 7,791
 
  
$
 
67,568
 
Leasehold improvements
      45,852        23,410        22,442  
Production equipment
      3,139        1,620        1,519  
Processing equipment
      4,027        2,780        1,247  
Sales equipment
      1,305        785        520  
Office equipment
      6,685        4,644        2,041  
Land
      3,644        —           3,644  
Construction in progress
      4,339        —           4,339  
    
 
 
     
 
 
     
 
 
  
Total
  
$
144,350
 
  
$
 41,030
 
  
$
103,320
 
    
 
 
     
 
 
     
 
 
  
 
 
  
As of December 31, 2021
 
 
  
Cost
 
  
Accumulated
Depreciation
 
  
Net Book
Value
 
Buildings
   
$
 73,618
 
  
$
 6,591
 
  
$
 67,027
 
Leasehold improvements
      49,850        19,560        30,290  
Production equipment
      7,678        3,512        4,166  
Processing equipment
      4,773        3,022        1,751  
Sales equipment
      1,344        574        770  
Office equipment
      3,798        1,754        2,044  
Land
      4,293        —          4,293  
Construction in progress
      2,293        —          2,293  
    
 
 
     
 
 
     
 
 
  
Total
   
$
147,647
 
  
$
 35,013
 
  
$
112,634
 
    
 
 
     
 
 
     
 
 
  
For the year ended December 31, 2022, the Company recorded a depreciation expense of $
12.7
 million (December 31, 2021—$
13.5
 million). During the year ended December 31, 2022, the Company disposed of property, plant and equipment, amounting to $
1.0
 
million (December 31, 2021—$
0.2
 million), with net consideration of approximately $
1.7
 million, resulting in a gain of $
0.7
 million (December 31, 2021—gain of $
0.1
 
million).
The majority of the assets disposed included land and building for the Company’s dispensary in Fall River, with a cost of $
0.8
 
million, and the remainder of the assets disposed related to production equipment in New Jersey and vehicles in Florida.
As a result of declining performance of GMNV’s business during the year ended December 31, 2022, an impairment test was performed for GMNV’s long-lived assets as of December 31, 2022 (Refer to Note 2(j)). The Company concluded that the carrying amount of the long-lived assets exceeded the fair value and recorded an impairment loss on property, plant and equipment of
$2.7 million for the year ended December 31, 2022.
On November 1, 2022, the Company entered into a non-binding term sheet to sell its Vermont
business
. Subsequently, on February 6, 2023, the Company through its wholly-owned subsidiary, ICM, entered into the MIPA, pursuant to which the Company agreed to complete the sale of its Vermont business (refer to Note 18). As of December 31, 2022, the Company concluded that the asset group met the criteria for assets held for sale. In accordance with ASC Subtopic 360-10, the Company performed an impairment assessment prior to reclassifying the asset group as held for sale. During the year ended December 31, 2022, the Company recorded an impairment loss of
$
0.7 
million, of which less than 
$
0.1
 
million was allocated to property, plant and equipment for the year ended December 31, 2022 (December 31, 2021—impairment loss of less than
$
0.1
 
million was allocated to property, plant and equipment related to the Company’s CBD business).