| GOODWILL AND INTANGIBLE ASSETS |
7. GOODWILL AND INTANGIBLE ASSETS
Goodwill
There were no indicators of impairment during the years presented. As of December 31, 2021 and 2020, the Company’s goodwill is as follows:
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Total |
As of January 1, 2020 |
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$ |
54,948,360 |
Acquired through business combinations |
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3,015,000 |
As of December 31, 2020 |
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$ |
57,963,360 |
Acquired through business combinations |
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171,946,202 |
As of December 31, 2021 |
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$ |
229,909,562 |
Intangible Assets
Amortization expense is recorded within cost of goods sold and total expenses. The amount in cost of goods sold for the years ended December 31, 2021 and 2020, was $12,047,224 and $1,691,787, respectively. The following table represents intangible assets:
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Right-to-use |
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Host community |
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Trade name / |
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Licenses/Permits |
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licenses |
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agreements |
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brand |
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Useful life (# of years) |
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15 |
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15 |
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15 |
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5 |
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Total |
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Cost |
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As of January 1, 2020 |
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$ |
22,000,000 |
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$ |
138,550,000 |
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$ |
35,000,000 |
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$ |
2,390,000 |
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$ |
197,940,000 |
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As of December 31, 2020 |
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$ |
97,172,043 |
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$ |
139,650,000 |
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$ |
35,000,000 |
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$ |
2,390,000 |
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$ |
274,212,043 |
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As of December 31, 2021 |
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$ |
999,833,782 |
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$ |
13,255,000 |
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$ |
36,000,000 |
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$ |
2,390,000 |
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$ |
1,051,478,782 |
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Accumulated Amortization |
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As of January 1, 2020 |
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$ |
883,154 |
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$ |
5,561,864 |
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$ |
1,405,018 |
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$ |
287,828 |
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$ |
8,137,864 |
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Amortization |
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1,668,503 |
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9,236,666 |
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2,333,333 |
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|
478,000 |
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13,716,502 |
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As of December 31, 2020 |
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$ |
2,551,657 |
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$ |
14,798,530 |
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$ |
3,738,351 |
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$ |
765,828 |
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$ |
21,854,366 |
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Amortization |
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40,247,931 |
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7,633,028 |
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2,350,000 |
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478,000 |
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50,708,959 |
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As of December 31, 2021 |
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$ |
64,568,396 |
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$ |
662,750 |
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$ |
6,088,351 |
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$ |
1,243,828 |
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$ |
72,563,325 |
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Net book value |
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As of January 1, 2020 |
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$ |
21,116,846 |
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$ |
132,988,136 |
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$ |
33,594,982 |
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$ |
2,102,172 |
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$ |
189,802,136 |
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As of December 31, 2020 |
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$ |
94,620,386 |
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$ |
124,851,470 |
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$ |
31,261,649 |
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$ |
1,624,172 |
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$ |
252,357,677 |
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As of December 31, 2021 |
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$ |
935,265,386 |
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$ |
12,592,250 |
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$ |
29,911,649 |
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$ |
1,146,172 |
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$ |
978,915,457 |
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The anticipated amortization expense over the next five years is as follows:
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Amortization |
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2022 |
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2023 |
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2024 |
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2025 |
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2026 |
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2027 and beyond |
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Expense |
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$ |
70,350,585 |
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$ |
70,417,252 |
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$ |
70,129,424 |
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$ |
69,939,252 |
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$ |
69,939,252 |
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$ |
634,793,003 |
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