Cronos Group Inc.CRON
Cronos Group Inc. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets, net
(a)Goodwill
Goodwill is comprised of the following items:
| As of December 31, 2025 | |||||||||||||||||
| Cost | Accumulated impairment charges | Net | |||||||||||||||
Peace Naturals | $ | 1,022 | $ | — | $ | 1,022 | |||||||||||
| Cronos GrowCo | 65,456 | — | 65,456 | ||||||||||||||
| $ | 66,478 | $ | — | $ | 66,478 | ||||||||||||
| As of December 31, 2024 | |||||||||||||||||
| Cost | Accumulated impairment charges | Net | |||||||||||||||
| Peace Naturals | $ | 976 | $ | — | $ | 976 | |||||||||||
| Cronos GrowCo | $ | 62,477 | $ | — | $ | 62,477 | |||||||||||
| $ | 63,453 | $ | — | $ | 63,453 | ||||||||||||
(b)Intangible assets, net
In the fourth quarter of 2025, the Company determined that its Lord Jones® indefinite-lived intangible asset exhibited signs of impairment due to lower than anticipated sales figures and conducted an analysis comparing the Lord Jones® brand’s carrying amount to its estimated fair value. The fair value was estimated using the income approach, with key inputs being estimated cash flows and the discount rate. As a result of this analysis, the Company recorded an impairment loss on goodwill and long-lived assets of $700 in its consolidated statements of net income (loss) and comprehensive income (loss) for the year ended December 31, 2025.
In the fourth quarter of 2023, the Company determined that it had no current plans to utilize the intellectual property associated with one of its exclusive licenses with Ginkgo and, therefore, recognized $3,366 in impairment charges on the consolidated statements of net income (loss) and comprehensive income (loss) for the year ended December 31, 2023.
In the third quarter of 2024, the Company determined that it was no longer utilizing and had no current plans to utilize the intellectual property associated with its other exclusive licenses with Ginkgo. As a result, the remaining net book value of $14,258 was impaired and recorded to on the consolidated statements of income (loss) and comprehensive income (loss) in the year ended December 31, 2024. During the fourth quarter of 2025, the Company disposed of its existing Ginkgo exclusive licenses through a sale to Ginkgo for nominal consideration.
Intangible assets, net are comprised of the following items:
| As of December 31, 2025 | ||||||||||||||||||||||||||
| Cost | Accumulated amortization | Accumulated impairment charges | Net | |||||||||||||||||||||||
| Software | $ | 5,511 | $ | (4,391) | $ | (76) | $ | 1,044 | ||||||||||||||||||
| Health Canada licenses | 8,182 | (1,710) | (6,472) | — | ||||||||||||||||||||||
Israeli codes(i) | 323 | (103) | — | 220 | ||||||||||||||||||||||
Know-how(ii) | 8,030 | (1,204) | — | 6,826 | ||||||||||||||||||||||
| Total definite-lived intangible assets | 22,046 | (7,408) | (6,548) | 8,090 | ||||||||||||||||||||||
Lord Jones® brand | 64,000 | — | (63,200) | 800 | ||||||||||||||||||||||
| Trademarks | 142 | — | (142) | — | ||||||||||||||||||||||
| Total intangible assets | $ | 86,188 | $ | (7,408) | $ | (69,890) | $ | 8,890 | ||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Cost | Accumulated amortization | Accumulated impairment charges | Net | |||||||||||||||||||||||
| Software | $ | 6,988 | $ | (4,646) | $ | (72) | $ | 2,270 | ||||||||||||||||||
| Health Canada licenses | 7,810 | (1,673) | (6,137) | — | ||||||||||||||||||||||
| Ginkgo exclusive licenses | 26,139 | (5,329) | (20,810) | — | ||||||||||||||||||||||
Israeli codes(i) | 281 | (76) | — | 205 | ||||||||||||||||||||||
Know-how(ii) | 7,665 | (383) | — | 7,282 | ||||||||||||||||||||||
| Total definite-lived intangible assets | 48,883 | (12,107) | (27,019) | 9,757 | ||||||||||||||||||||||
Lord Jones® brand | 64,000 | — | (62,500) | 1,500 | ||||||||||||||||||||||
| Trademarks | 142 | — | (142) | — | ||||||||||||||||||||||
| Total intangible assets | $ | 113,025 | $ | (12,107) | $ | (89,661) | $ | 11,257 | ||||||||||||||||||
(i) The Israeli codes were transferred by non-controlling interests to Cronos Israel in exchange for their equity interests in the Cronos Israel entities.
(ii) Know-how was acquired as part of the Cronos GrowCo Transaction. See Note 2 “Business Combination” for more information. Amortization costs associated with the know-how intangible asset are recorded to cost of sales on the consolidated statements of net income (loss) and comprehensive income (loss).
The estimated future amortization of definite-lived intangible assets is as follows:
| As of December 31, 2025 | ||||||||
| 2026 | $ | 1,514 | ||||||
| 2027 | 1,094 | |||||||
| 2028 | 888 | |||||||
| 2029 | 825 | |||||||
| Thereafter | 3,769 | |||||||
| $ | 8,090 | |||||||
Impairment of Intangible Assets
Accumulated impairment charges on intangible assets, net consist of:
| As of December 31, 2024 | Impairment charges | Disposals | Foreign exchange effect | As of December 31, 2025 | ||||||||||||||||||||||
| Software | $ | (72) | $ | — | $ | — | $ | (4) | $ | (76) | ||||||||||||||||
| Health Canada licenses | (6,137) | — | — | (335) | (6,472) | |||||||||||||||||||||
Ginkgo exclusive licenses(i) | (20,810) | — | 21,654 | (844) | — | |||||||||||||||||||||
Lord Jones® brand | (62,500) | (700) | — | — | (63,200) | |||||||||||||||||||||
| Trademarks | (142) | — | — | — | (142) | |||||||||||||||||||||
| $ | (89,661) | $ | (700) | $ | 21,654 | $ | (1,183) | $ | (69,890) | |||||||||||||||||
| As of December 31, 2023 | Impairment charges | Disposals | Foreign exchange effect | As of December 31, 2024 | ||||||||||||||||||||||
| Software | $ | (78) | $ | — | $ | — | $ | 6 | $ | (72) | ||||||||||||||||
| Health Canada licenses | (6,650) | — | — | 513 | (6,137) | |||||||||||||||||||||
| Ginkgo exclusive licenses | (7,968) | (14,258) | — | 1,416 | (20,810) | |||||||||||||||||||||
Lord Jones® brand | (62,500) | — | — | — | (62,500) | |||||||||||||||||||||
| Trademarks | (142) | — | — | — | (142) | |||||||||||||||||||||
| $ | (77,338) | $ | (14,258) | $ | — | $ | 1,935 | $ | (89,661) | |||||||||||||||||
| As of December 31, 2022 | Impairment charges | Disposals | Foreign exchange effect | As of December 31, 2023 | ||||||||||||||||||||||
| Software | $ | (76) | $ | — | $ | — | $ | (2) | $ | (78) | ||||||||||||||||
| Health Canada licenses | (6,498) | — | — | (152) | (6,650) | |||||||||||||||||||||
| Ginkgo exclusive licenses | (4,434) | (3,366) | — | (168) | (7,968) | |||||||||||||||||||||
Lord Jones® brand | (62,500) | — | — | — | (62,500) | |||||||||||||||||||||
| Trademarks | (142) | — | — | — | (142) | |||||||||||||||||||||
| $ | (73,650) | $ | (3,366) | $ | — | $ | (322) | $ | (77,338) | |||||||||||||||||
(i) During the fourth quarter of 2025, the Company disposed of its existing Ginkgo exclusive licenses through a sale to Ginkgo for nominal consideration.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.