Note 7 — Prepaid License Rights

The Company evaluates transactions involving the acquisition of intellectual property and other assets to determine the appropriate accounting treatment based on applicable GAAP, including ASC 805, and ASC Topic 340 – Other Assets and Deferred Costs (“ASC 340”). Certain transactions may not meet the criteria for either a business combination or an asset acquisition and are accounted for under other applicable GAAP.

Prepaid License Rights relate to arrangements entered into in 2025 with affiliates of Green Thumb, as further described in Note 8 below.

As of June 30, 2026 and December 31, 2025, prepaid license rights were comprised of the following:

During the three and six months ended June 30, 2026, the Company recognized amortization expense of $3.5 million and $6.9 million, respectively, related to Prepaid License Rights.

The estimated future amortization expense for the next five years and thereafter is as follows: