| Nature of Operations and Summary of Significant Accounting Policies | 1.
Nature of Operations and Summary of Significant Accounting Policies The
Company was originally incorporated in Delaware on August 26, 2019 as a special purpose acquisition company. The Company was formed for
the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar
business combination with one or more businesses or entities as completed on the Closing Date On
November 26, 2021 (the “Closing Date”) The Greenrose Holding Company Inc. (“Greenrose”, the “Company”,
or “Successor”), formerly known as Greenrose Acquisition Corp., consummated its business combination (the “Theraplant
Merger” or “Theraplant Business Combination”) with Theraplant, LLC, a Connecticut limited liability company (“Theraplant”
or “Predecessor”), a private operating company. The Theraplant Business Combination was consummated pursuant to the Agreement
and Plan of Merger dated March 12, 2021 (as amended pursuant to that certain Amendment No. 1, dated as of August 10, 2021, to the Agreement
and Plan of Merger (“Amendment No. 1”), and that certain Amendment No. 2, dated as of November 26, 2021, to the Agreement
and Plan of Merger (“Amendment No. 2”), collectively, the “Theraplant Merger Agreement”), pursuant to which GNRS
CT Merger Sub, a Connecticut limited liability company and a wholly-owned subsidiary of Greenrose (“TPT Merger Sub”) was
merged with and into Theraplant, with Theraplant surviving the Merger as a wholly owned subsidiary of Greenrose. The financial results
described herein for the dates and periods prior to the Theraplant Business Combination relate to the operations of the Predecessor prior
to the consummation of the Theraplant Business Combination. The Consolidated Financial Statements after the Closing Date include the
accounts of the Company and its wholly owned subsidiaries including Theraplant. On
December 31, 2021, the Company and True Harvest Holdings, Inc., a Delaware corporation and a wholly-owned subsidiary of the
Company (“TH Buyer”), and True Harvest, LLC, an Arizona limited liability company (“True Harvest”), consummated
the acquisition of substantially all of True Harvest’s assets and the assumption of certain of True Harvest’s liabilities
(the “True Harvest Acquisition”), pursuant to that certain Asset Purchase Agreement dated March 12, 2021, as amended
by that Amendment No. 1 to the Asset Purchase Agreement dated July 2, 2021, that certain Amendment No. 2 to the Asset Purchase Agreement
dated October 28, 2021, and that certain Amendment No. 3 to the Asset Purchase Agreement dated December 31, 2021 (as it may
be amended from time to time, the “Asset Purchase Agreement”). The
Company, through its wholly owned subsidiaries (Theraplant and True Harvest) is a multi-state grower and producer of cannabis products
dedicated to providing patients options to improve their wellbeing. Theraplant is a Connecticut State licensed marijuana producer that
hand selects premium cannabis genetics grown in a controlled, clean environment, under the watch of an award-winning cultivation team,
and tested by a third-party laboratory for pesticides and microbiologics. True Harvest cultivates, manufactures, and sells medical marijuana
in the State of Arizona, under a cultivation agreement with a third-party licensor, and holder of a medical marijuana dispensary registration
certificate from Arizona Department of Health Services and is authorized to operate an off-site cultivation facility. Following
the transactions stated above, the Company has authorized; 150,000,000 shares of common stock with a par value of $0.001 per share, Preferred
stock, $0.0001 par value; 1,000,000 shares authorized. The rights of the holders of Class A common stock and Class B common stock are
identical, except for voting and conversion rights. See Note 13- Stockholders’ Equity/Members’ Equity, for additional details COVID-19 In
March 2020, the World Health Organization declared the coronavirus (COVID-19) a global pandemic. The COVID-19 outbreak and the response
of governmental authorities to try to limit it are having a significant impact on the private sector and individuals, including unprecedented
business, employment and economic disruptions. Management has been closely monitoring the impact of COVID-19, with a focus on the health
and safety of the Company’s employees, business continuity and supporting the communities where the Company operates. The Company
has implemented various measures to reduce the spread of the virus, including implementing social distancing measures at its cultivation
facilities, manufacturing facilities, and dispensaries, enhancing cleaning protocols at such facilities and dispensaries and encouraging
employees to adhere to preventative measures recommended by local, state, and federal health officials. It
is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on its business
or results of operations at this time. Liquidity
and Going Concern The
Company’s primary sources of liquidity are cash from operations, cash and cash equivalents on hand. The Company’s primary
requirements for liquidity are to fund its working capital needs, debt service, operating lease obligations, capital expenditures and
general corporate needs. Theraplant is generating cash from sales and is deploying its capital reserves to acquire and develop assets
capable of producing additional revenues and earnings over both the immediate and near term to support its business growth and expansion.
With the True Harvest Acquisition, on December 31, 2021, we expect to be further generating cash from sales over the next 12 months.
As of March 31, 2022, we maintained a cash and cash equivalents balance of $1,864 thousand, and $1,678 thousand of restricted cash with
$108,537 thousand working capital deficit. Based
on forecasted expenditures related to the Company’s debt service and following the completion of the True Harvest Acquisition on
December 31, 2021, after taking into account the Company’s cash flow projections, the Company does not believe it will have sufficient
cash on hand or available liquidity to meet its obligations through the twelve months from the date of issuance of the consolidated financial
statements for the three months ended March 31, 2022. The Company has incurred significant expenses in relation to its acquisitions.
The Company expects cash flows to increase over time, but not in sufficient quantities in the short term to pay for expenses, without
additional capital, or Connecticut adult use legalization. As a result, substantial doubt exists regarding the going concern assumption
on the consolidated financial statements. Therefore, these conditions raise substantial doubt about our ability to continue as a going
concern. As
a result of the substantial doubt about our ability to continue as a going concern, the Company has violated a debt covenant with one
of its lenders. While no event of default has been declared nor has acceleration of indebtedness been triggered by our senior lender
pursuant to the Credit Facility, the potential for such eventualities and potential cross defaults requires us to classify our long-term
obligations as current liabilities. Upon the occurrence of such an event of default, if not timely cured, all amounts outstanding under
our Credit Facility could be declared to be immediately due and payable, which is how our financial statements are presented. If indebtedness
under our Credit Facility is accelerated, there can be no assurance that we will have sufficient assets to repay the indebtedness. The
Company is actively working with the lender to cure the default; however, no assurances can be given as to the success of these actions.
As reflected in more detail in Note 8, all debt has been classified as current given the event of default. The
Company has certain debt obligations to sellers, our lender, and vendors which will require cash to meet their requirements. The Company’s
ability to continue meeting these contractual obligations will be reliant upon its ability to secure significant additional capital funding
or revise the contracts. In
2022, the Company intends to revise its agreements with sellers and seek significant additional capital funding to stabilize its cash
flow. However, there can be no assurance that such efforts will be successful or that, in the event that they are successful, the terms
and conditions of such financing will be favorable. The
consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Emerging
Growth Company The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required
to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced
disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements
of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously
approved. Further,
Section 102(b)(l) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do
not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of
such extended transition period, which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which
is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used. Basis
of Presentation The
accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the
United States of America (“GAAP”) for interim financial information, and (ii) the instructions to Form 10-Q and Article 10
of Regulation S-X. In the opinion of our management, our unaudited consolidated financial statements and accompanying notes (the “Consolidated
Financial Statements”) include all normal recurring adjustments that are necessary for the fair statement of the interim periods
presented. Interim results of operations are not necessarily indicative of results for the full year, or any other period. The Financial
Statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) in our Annual Report
on Form 10-K for the year ended December 31, 2021 (the “Annual Report”), as filed with the United States Securities and Exchange
Commission (“SEC”). As
a result of the Theraplant Business Combination, the Company is the acquirer for accounting purposes and Theraplant is the acquiree and
accounting predecessor. Theraplant was determined to be the accounting predecessor as the activity and operations of Theraplant will
constitute substantially all the activity of the consolidated company in the period following the Theraplant Business Combination. The
Company’s financial statement presentation distinguishes the Company’s financial performance into two distinct periods, the
period up to the Closing Date/(labelled “Predecessor”) and the period after that date (labelled “Successor”). The
Theraplant Business Combination was accounted for using the acquisition method of accounting, and the Successor financial statements
reflect a new basis of accounting that is based on the fair value of the net assets acquired. Determining
the fair value of certain assets and liabilities assumed is judgmental in nature and often involves the use of significant estimates
and assumptions. See Note 2 - Business Combinations for a discussion of the estimated fair values of assets and liabilities recorded
in connection with the Company’s acquisition of Theraplant. As
a result of the application of the acquisition method of accounting as of the Closing Date of the Theraplant Business Combination, the
accompanying Consolidated Financial Statements include a black line division which indicates that the Predecessor and Successor reporting
entities shown are presented on a different basis and are therefore, not comparable. The
historical financial information of Greenrose Acquisition Corp. (a special purpose acquisition company, or “SPAC”) prior
to the Theraplant Business Combination has not been reflected in the Predecessor financial statements which are the only reflective of
the financial position and operating results of Theraplant. Accordingly, no other activity of the SPAC was reported for any period prior
to November 26, 2021. We round amounts in the Financial Statements to thousands, except per unit or per share amounts or as otherwise
stated. We calculate all percentages, per-unit, and per-share data from the underlying whole-dollar amounts. Thus, certain amounts may
not foot, cross foot, or recalculate based on reported numbers due to rounding. Unless otherwise indicated, all references to years are
to our fiscal year, which ends on December 31. Basis
of Consolidation The
accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, Theraplant and True Harvest
as well as their wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Cash
and Cash Equivalents Cash
and cash equivalents include cash deposits in financial institutions, other deposits that are readily convertible into cash, with original
maturities of three months or less, and cash held at retail locations. The Company maintains its cash in bank deposit accounts, which,
at times, may exceed federally insured limits. At March 31, 2022 and December 31, 2021 the Company had balances of cash totaling approximately
$1,864 thousand and $7,240 thousand, respectively. As of March 31, 2022 and December 31, 2021, we did not hold any cash equivalents. Restricted
Cash The
Company is required to maintain cash collateral for two months of payments of the deferred cash payment incurred in connection with the
Theraplant Business Combination discussed in Note 2. Accordingly, this balance contains restrictions as to the availability and usage
and is classified as restricted cash in the consolidated balance sheet. The reconciliation of cash and cash equivalents and restricted
cash reported within the applicable balance sheet that sum to the total of the same such amounts shown in the consolidated statements
of cash flows is as follows:
Successor
March 31,
Cash and cash equivalents $ 1,864
Restricted cash 1,678
Total cash and cash equivalents and restricted cash $ 3,542 Marketable
Securities As
of March 31, 2022, the Company designated its only marketable security as equity securities and classified it as trading. The Company
determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation as of each
balance sheet date. The
Company’s marketable securities are classified as trading and reported at fair value, with changes in fair value recognized through
the Change in Fair Value of Financial Instruments on the Consolidated Statements of Operations. Fair value is based on quoted prices
for identical assets in active markets. Realized gains and losses are determined on the basis for the actual cost of the securities sold.
Dividends on equity securities are recognized in income when declared. No dividends from Marketable Securities were received during the
period. Accounts
Receivable and Allowance for doubtful accounts Trade
accounts receivable are recorded at the invoiced amount and do not bear interest. Allowances for doubtful accounts reflect the Company’s
estimate of amounts in its existing accounts receivable that may not be collected due to customer claims or customer inability or unwillingness
to pay. The allowance is determined based on a combination of factors, including the Company’s risk assessment regarding the credit
worthiness of its customers, historical collection experience and length of time the receivables are past due. Though infrequent, if
ever, account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered.
No allowance for doubtful accounts was required as of March 31, 2022 or December 31, 2021. Prepaid
and Other Current Assets Prepaid
and other current assets consist of prepaid insurance premiums, other receivables, and packaging supplies. The Company pays for packaging
and other similar products used to finish inventory well in advance of receipt of the goods. Inventories The
Company’s inventories include the direct costs of seeds, labor, and growing materials, indirect costs such as utilities, labor,
depreciation and overhead costs, and subsequent costs to prepare the products for ultimate sale, which include direct costs such as materials
and direct labor, and indirect costs such as utilities and indirect labor. All direct and indirect costs related to inventory are capitalized
when they are incurred, and they are subsequently classified to Cost of goods sold in the Condensed Consolidated Statements of Operations.
Inventories purchased from third parties, which include work in process, finished goods, and packaging and supplies, are valued at the
lower of cost and net realizable value. Costs incurred during the growing and production process are capitalized as incurred to the extent
that cost is less than net realizable value. Cost is determined using the weighted average costing method. Net realizable value is the
estimated selling price in the ordinary course of business, less the estimated costs to sell. The Company reviews inventories for obsolete,
redundant, and slow-moving goods and any such inventories identified are written down to net realizable value. As of March 31, 2022 and
December 31, 2021 no reserve for inventories was required. On
February 8, 2020, one of the Theraplant’s grow rooms had a fire, destroying the plants housed within that room. The inventory was
immediately adjusted down to account for the loss of plants. The insurance company paid for the repairs to the room, and a claim is still
pending for lost revenues of $1,000 thousand the policy limit. Property
and Equipment, net Property
and equipment is stated at cost, net of accumulated depreciation and impairment losses, if any. Expenditures that materially increase
the life of the assets are capitalized. Ordinary repairs and maintenance are expensed as incurred. Land and construction in process are
not depreciated Depreciation is calculated on a straight-line basis over the estimated useful life of the asset using the following terms
and methods:
Land
Improvements 5 Years
Buildings
and Improvements 10 – 39 Years
Furniture
and Fixtures 1 – 7 Years
Computer
Equipment and Software 2 – 3 Years
Vehicles 3 – 8 Years
Production
and Processing Equipment 1 – 7 Years
Controls 3 – 14 Years
Leasehold
Improvements Shorter of 10 Years or Lease term Income
Taxes Deferred
taxes are provided using an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences
and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences
are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a
valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets
will not be realized. A valuation allowance is recorded to reduce the carrying amount of a deferred tax asset to its realizable value
unless it is more likely than not that such asset will be realized. We recognize interest and penalties associated with tax matters as
part of the income tax provision, if any, and include accrued interest and penalties with the related tax liability in the Condensed
Consolidated Balance Sheet, if applicable. Deferred
tax assets and liabilities are measured using the enacted taxes rates. The effect on deferred tax assets and liabilities of a change
in tax law or tax rates is recognized in income in the period that enactment occurs. As discussed further in Note 11—Income Taxes,
the Company is subject to the limitations of Internal Revenue Code of 1986, as amended (“IRC”) Section 280E.Prior to the
Theraplant Business Combination, the Predecessor’s members had elected to have the Predecessor treated as a partnership for income
tax purposes. As such, the items of income, loss, deduction, and credit are passed through to, and taken into account by, the Predecessor’s
members in computing their own taxable income. The
Predecessor is subject to the limits of IRC Section 280E under which it is only allowed to deduct expenses directly related to sales
of product. This results in permanent differences between ordinary and necessary business expenses deemed non-allowable under IRC Section
280E. The
deferred tax amounts contained within Condensed Consolidated Balance Sheets arise from timing differences between federal and state depreciation
regulations. There are no deferred tax liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. Revenue
Recognition For
the period ended March 31, 2022 and the period ended March 31, 2021, the Company has adopted Financial Accounting Standards Board (“FASB”)
Audit Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” and all the related amendments,
which are also codified into Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. Through
application of this standard, the Company recognizes revenue to depict the transfer of promised goods or services to the customer in
an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In
order to recognize revenue under ASC 606, the Company applies the following five (5) steps:
● Identify
a customer along with a corresponding contract;
● Identify
the performance obligation(s) in the contract to transfer goods or provide distinct services to a customer;
● Determine
the transaction price the Company expects to be entitled to in exchange for transferring promised goods or services to a customer;
● Allocate
the transaction price to the performance obligation(s) in the contract;
● Recognize
revenue when or as the Company satisfies the performance obligation(s). Under
Topic 606, revenue from the sale of cannabis products is a single performance obligation and revenue is recognized at the point in time
when control of the product transfers and the Company’s obligations have been fulfilled. This generally occurs upon delivery and
acceptance by the customer. Amounts disclosed as revenue are net of allowances, discounts, and rebates. Payment is typically due upon
transferring the goods to the customer or within a specified time period permitted under the Company’s policy. Sales discounts
were not material during the period ended March 31, 2022 and the period ended March 31, 2021. A
significant customer is defined to be those that individually comprise 10% or more of the Company’s revenues or accounts receivable.
The following table reflects the revenues and accounts receivable for customers determined to be significant for the three months ended
March 31, 2022 and March 31, 2021 and as of March 31, 2022 and December 31, 2021, respectively.
Accounts Receivable Revenue
As of For the Periods Ended
Successor Successor Successor Predecessor
March 31, December 31, March 31, March 31,
Customer A 16 % 25 % 17 % 28 %
Customer B 22 % 20 % 15 % 17 %
Customer C 12 % 16 % * 16 %
Customer D * * * 10 %
Customer F 14 % 17 % 13 % 14 % Fair
Value of Financial Instruments The
carrying amounts of financial instruments, including accounts receivable, marketable securities, accounts payable, accrued liabilities,
and short-term borrowings, approximate fair value due to the short maturity of these instruments. The carrying amounts of long-term debt
approximate fair value because the interest rates fluctuate with market interest rates, or the fixed rate are based on current rates
received by the Company for instruments with similar terms and maturities. It
is the Company’s policy, in general, to measure nonfinancial assets and liabilities at fair value on a nonrecurring basis. These
items are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (such as
evidence of impairment) which, if material, are disclosed in the accompanying notes to these consolidated financial statements. Financial
instruments recorded at fair value are classified using a fair value hierarchy that reflects the significance of the inputs to fair value
measurements. The three levels of hierarchy are:
Level
1: Unadjusted
quoted prices in active markets for identical assets or liabilities;
Level
2: Inputs
other than quoted prices that are observable for the asset or liability, either directly or indirectly; and
Level
3: Inputs
for the asset or liability that are not based on observable market data. Use
of Estimates The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the amounts reported in the consolidated financial statements and accompanying notes and related disclosures. Although these estimates
are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results
ultimately may differ from the estimates. The
Company is subject to a number of risks similar to those of other companies of similar size and having a focus on serving the cannabis
industry, including limited number of suppliers, acquisitions and integration, and government regulations. Impairment
of Long-Lived Assets The
Company accounts for its long-lived assets such as property and equipment in accordance with FASB ASC Topic No. 360, “Accounting
for the Impairment or Disposal of Long-lived Assets” (“ASC 360”). Management
reviews long-lived assets for impairment whenever changes in events or circumstances indicate the assets may be impaired, but no less
frequently than annually. Pursuant to ASC 360, an impairment loss is to be recorded when the net book value of an asset exceeds the undiscounted
cash flows expected to be generated from the use of the asset. If an asset is determined to be impaired, the asset is written down to
its realizable value, and the loss is recognized in the consolidated statement of operations in the period when the determination is
made. No impairment charges for long-lived assets have been recorded for the period ended March 31, 2022 and the period ended March 31,
2021. Concentration
of Credit Risk Financial
instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution,
which, at times may exceed the Federal Depository Insurance Coverage of $250 thousand. The Company has not experienced losses on these
accounts and management believes the Company is not exposed to significant risks on such accounts. Advertising Advertising
amounts are expensed as incurred. Advertising expense for the period ended March 31, 2022 and the period ended March 31, 2021, totaled
$26 thousand and $4 thousand, respectively. Earnings
Per Share Basic and diluted earnings per share (“EPS”)
are calculated in accordance with ASC 260, Earnings Per Share (“ASC 260”). Basic EPS is calculated by dividing net income
(loss) attributable to the Company by the weighted average number of common shares outstanding during the year. Diluted EPS is calculated,
if applicable, by adjusting net income (loss) attributable to the Company and the weighted average number of common shares, taking into
effect all potential dilutive common shares. Shares of restricted stock granted by us are considered to be legally issued and outstanding
as of the date of grant, notwithstanding that the shares remain subject to the risk of forfeiture if the vesting conditions for such shares
are not met, and are included in the number of shares outstanding disclosed on the cover page of this Quarterly Report on Form 10-Q. Weighted-average
common shares outstanding excludes time-based and performance-based unvested shares of restricted Class A common stock, as restricted
shares are treated as issued and outstanding for financial statement presentation purposes only after such shares have vested and, therefore,
have ceased to be subject to a risk of forfeiture. Segment
Reporting Operating
segments are identified as components of an enterprise where separate discrete financial information is available for evaluation by the
chief operating decision maker in making decisions on how to allocate resources and assess performance. The Company operates in a single
segment which is its only reportable segment: the production and sale of cannabis products. The Company has determined that its Chief
Operating Decision Maker (“CODM”) is its Chief Executive Officer, and the CODM makes decisions based on the Company as a
whole. In determining the Company’s segment, Management considered differences in products, geographic regions for which it operates
in, and the differing regulatory environments. Goodwill
and Indefinite Life Intangible Assets Goodwill,
represents the excess of purchase price over the fair value of net assets acquired, is carried at cost in a transaction accounted for
as a business combination in accordance with ASC 805. Goodwill is not amortized; rather, it is subject to a periodic assessment for impairment
by applying a fair value-based test. The Company is organized in one reporting unit and evaluates the goodwill for the Company as a whole.
Goodwill is assessed for impairment on an annual basis as of November 1st of each year or more frequently if events or changes in circumstances
indicate that the asset might be impaired. Under the authoritative guidance issued by the FASB, the Company has the option to first assess
the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying
amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If the Company determines
that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the goodwill impairment
test is performed. The goodwill impairment test requires the Company to estimate the fair value of the reporting unit and to compare
the fair value of the reporting unit with its carrying amount. If the fair value exceeds the carrying amount, then no impairment is recognized.
If the carrying amount recorded exceeds the fair value calculated, then an impairment charge is recognized for the difference. There
was no impairment of goodwill for the period ended March 31, 2022 and the period ended March 31, 2021. Indefinite
life intangible assets are carried at cost less accumulated impairment losses. The Company reviews the classification each reporting
period to determine whether the assessment made about the useful life is still appropriate. Any change is accounted for on a prospective
basis as a change in estimate. Goodwill is currently the onl |
