Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS, NET

v3.24.1
GOODWILL AND INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2023
Disclosure of detailed information about intangible assets [abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET [Text Block]
NOTE 11:-
GOODWILL AND INTANGIBLE ASSETS, NET
 
   
Cultivations and processing license *)
    
Customer relationships
    
Brand
    
Goodwill
    
Other
    
Total
  
Cost:
                                    
                                     
Balance at January 1, 2022
  
$
9,961
    
$
10,674
    
$
11,363
    
$
121,578
    
$
202
    
$
153,778
  
PPA adjustments during measurement period
    
-
      
5,715
      
-
      
(2,774
)
    
-
      
2,941
  
Disposals
    
(1,581
)
    
-
      
-
      
-
      
-
      
(1,581
)
Deconsolidation of Trichome
    
(5,856
)
    
(2,932
)
    
(9,799
)
    
-
      
(131
)
    
(18,718
)
Foreign currency translation adjustments
    
-
      
(381
)
    
-
      
(904
)
    
(48
)
    
(1,333
)
                                                 
Balance at December 31, 2022
    
2,524
      
13,076
      
1,564
      
117,900
      
23
      
135,087
  
PPA adjustments during measurement period
    
-
      
2,225
      
-
      
-
      
-
      
2,225
  
Disposals
    
-
      
(2,225
)
    
-
      
-
      
-
      
(2,225
)
Foreign currency translation adjustments
    
-
      
(361
)
    
-
      
336
 
    
-
      
(25
)
                                                 
Balance at December 31, 2023
    
2,524
      
12,715
      
1,564
      
118,236
      
23
      
135,062
  
                                                 
Accumulated amortization:
                                                
                                                 
Balance at January 1, 2022
    
774
      
469
      
8
      
275
      
64
      
1,590
  
Amortization recognized in the year
    
767
      
1,503
      
7
      
-
      
66
      
2,343
  
Impairment
    
1,215
      
4,461
      
1,501
      
107,854
      
4
      
115,035
  
Deconsolidation of Trichome
    
(1,083
)
    
(365
)
    
-
      
-
      
(114
)
    
(1,562
)
                                                 
Balance at December 31, 2022
    
1,673
      
6,068
      
1,516
      
108,129
      
20
      
117,406
  
Amortization recognized in the year
    
18
      
1,730
      
7
      
-
      
3
      
1,758
  
                                                 
Balance at December 31, 2023
    
1,691
      
7,798
      
1,523
      
108,129
      
23
      
119,164
  
                                                 
Amortized cost at December 31, 2023
  
$
833
    
$
4,917
    
$
41
    
$
10,107
    
$
-
    
$
15,898
  
                                                 
Amortized cost at December 31, 2022
  
$
851
    
$
7,008
    
$
48
    
$
9,771
    
$
3
    
$
17,681
  
 
*)
The licenses consist of GMP and GDP licenses.

 

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 25).


For the year ended December 31, 2023, the Company did not recorded a goodwill and intangible assets impairment.

 
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 years ended December 31, 2023, 2022 and 2021, the Group recorded amortization expenses in the amount of $1,758, $2,343 and $1,158, respectively. During the year ended December 31, 2023, the Group recorded amortization expenses from continuing operations in the amount of $1,758. The amortization expenses are included in the selling and marketing expenses.