| Intangible Assets |
Intangible Assets
The changes in intangible assets for the years ended December 31, 2018 and 2017 were as follows:
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|
Balance at December 31, 2016 |
|
$ |
— |
|
|
Additions |
|
18,068,000 |
|
|
Amortization |
|
(403,520 |
) |
|
Balance at December 31, 2017 |
|
$ |
17,664,480 |
|
|
Additions |
|
18,441,000 |
|
|
Purchase price allocation measurement period adjustments |
|
1,527,998 |
|
|
Amortization |
|
(4,532,448 |
) |
|
Impairment |
|
(1,861,562 |
) |
|
Balance at December 31, 2018 |
|
$ |
31,239,468 |
|
|
The following is a summary of intangible assets held by the Company at December 31, 2018 and December 31, 2017, respectively:
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December 31, 2018 |
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|
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Impairment Loss |
|
Net Carrying Amount |
|
Weighted-Average Remaining Life |
|
|
|
|
(in years) |
Acquired Product Marketing Rights |
|
$ |
33,656,998 |
|
|
$ |
(4,080,767 |
) |
|
$ |
— |
|
|
$ |
29,576,231 |
|
|
9.45 |
Sales and Marketing Agreement |
|
2,553,000 |
|
|
(691,438 |
) |
|
(1,861,562 |
) |
|
— |
|
|
— |
Acquired Developed Technology |
|
1,677,000 |
|
|
(145,013 |
) |
|
— |
|
|
1,531,987 |
|
|
9.25 |
Acquired Assembled Workforce |
|
150,000 |
|
|
(18,750 |
) |
|
— |
|
|
131,250 |
|
|
1.75 |
Total Intangible Assets |
|
$ |
38,036,998 |
|
|
$ |
(4,935,968 |
) |
|
$ |
(1,861,562 |
) |
|
$ |
31,239,468 |
|
|
9.41 |
|
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December 31, 2017 |
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|
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Impairment Loss |
|
Net Carrying Amount |
|
Weighted-Average Remaining Life |
|
|
|
|
(in years) |
Acquired Product Marketing Rights |
|
$ |
15,734,000 |
|
|
$ |
(257,645 |
) |
|
$ |
— |
|
|
$ |
15,476,355 |
|
|
11.20 |
Sales and Marketing Agreement |
|
2,334,000 |
|
|
(145,875 |
) |
|
— |
|
|
2,188,125 |
|
|
1.90 |
Total Intangible Assets |
|
$ |
18,068,000 |
|
|
$ |
(403,520 |
) |
|
$ |
— |
|
|
$ |
17,664,480 |
|
|
10.05 |
The Company received written notice to terminate the PAI sales and marketing agreement in the second quarter of 2018. As a result the Company reassessed the fair value of the PAI sales and marketing agreement on that date (a level III non-recurring fair value measurement) and concluded due to the absence of future cash flows beyond the date of termination that the fair value was $0. An impairment charge was recognized in the year ended December 31, 2018 in the amount of $1.9 million, representing the remaining net book value of the PAI sales and marketing agreement intangible asset on the date of assessment.
Amortization of intangibles for the next five years and thereafter is expected to be as follows:
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Estimated |
|
|
Amortization |
For the Years Ending December 31, |
|
Expense |
|
|
|
2019 |
|
$ |
4,315,318 |
|
2020 |
|
4,296,568 |
|
2021 |
|
4,082,334 |
|
2022 |
|
2,976,322 |
|
2023 |
|
2,976,322 |
|
Thereafter |
|
12,592,604 |
|
Total future amortization expense |
|
$ |
31,239,468 |
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|