Acquisitions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | 6. ACQUISITIONS
(a) Business Combinations:
The Company determined that the below described acquisition is a business combination under Accounting Standards Codification (“ASC”) 805, Business Combinations. It was accounted for by applying the acquisition method whereby the assets acquired, and the liabilities assumed were recorded at their fair values with any excess consideration over the fair value of the identifiable net assets was allocated to goodwill. Operating results have been included in these consolidated financial statements from the date of the acquisition. Supplemental pro forma financial information has not been presented as the impact was not material to the Company's consolidated financial statements. The goodwill recorded primarily includes the expected synergies resulting from combining the operations of the acquired entity with those of the Company.
The Company completed preliminary allocations of the purchase price of the assets acquired and liabilities assumed in association with three Connecticut-based retail stores. The preliminary valuation was based on management’s estimates and assumptions which are subject to change within the purchase price allocation period (generally one year from the acquisition date). The details of the transaction are discussed below. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of the tangible and intangible assets acquired and the residual goodwill. The following table summarizes the initial accounting estimates:
On June 2, 2025, a subsidiary of the Company acquired 100% of the membership interest held in three retail licenses in Connecticut for the purposes of expanding Green Thumb's national presence. The Company paid approximately $14,302 thousand in cash. As part of the initial purchase accounting, the Company recorded an intangible asset of $5,950 thousand, all of which was associated with licenses and permits that allows for the retail sale of cannabis. The weighted-average amortization period for the license intangible was 15 years. Acquisition-related costs associated with the transaction were not material. |
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