GOODWILL AND INTANGIBLE ASSETS, NET
|12 Months Ended|
Dec. 31, 2022
|Disclosure of detailed information about intangible assets [abstract]|
|INTANGIBLE ASSETS, NET [Text Block]||
Goodwill and intangible assets amortization and impairment:
For the year ended December 31, 2021, the Company recorded a goodwill impairment in the amount of $275 related to Adjupharm.
For the year ended December 31, 2022, the Company recorded a goodwill and intangible assets impairment in the amount of $107,854 and $3,067, respectively, related to Trichome (see Note 24).
The recoverable amounts of the intangible assets and the goodwill derived from the Israeli cash generating units were determined based on the value in use which is calculated at the expected estimated future cash flows, as determined according to the budget for the next five years and approved by the Company’s management. The pre-tax discount rate of the cash flows is 17.5%. The projected cash flows for the period exceeding five years was estimated using a fixed growth rate of 2%, representing the long-term average growth rate as customary in the business. Based on the analysis performed, the Company has determined that the recoverable amounts of the Israeli cash generating units exceeds its assets carrying amount. In addition, there is no reasonably possible change in any of the significant assumptions that would cause the carrying amount exceed its recoverable amount.
During the year ended on December 31, 2022 and 2021, the Group recorded amortization expenses in the amount of $2,343 and $1,158, respectively. During the year ended on December 31, 2022, the Group recorded amortization expenses from continuing and discontinued operations in the amount of $1,302 and $1,041, respectively. The amortization expenses are included in the cost of revenues, selling and marketing expenses and discontinued operations.
The entire disclosure for intangible assets.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef