Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.20.1
Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets

The changes in intangible assets for the years ended December 31, 2019 and 2018 were as follows:
Balance as of December 31, 2017
 
$
7,286,688

Additions
 
150,000

Purchase price allocation measurement period adjustments
 
6,000

Amortization
 
(1,815,872
)
Impairment
 
(1,861,562
)
Balance as of December 31, 2018
 
$
3,765,254

Amortization
 
(1,338,996
)
Balance as of December 31, 2019
 
$
2,426,258


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. No impairment for intangible assets from continuing operations was recognized as of December 31, 2019.
The following is a summary of intangible assets held by the Company at December 31, 2019 and December 31, 2018, respectively:

 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
    
Gross Carrying Amount
    
Accumulated Amortization
    
Net Carrying Amount
 
Weighted-Average Remaining Life
 
 
 
 
(in years)
Acquired Product Marketing Rights
 
$
5,056,000

 
$
(2,685,992
)
 
$
2,370,008

 
1.92
Acquired Assembled Workforce
 
150,000

 
(93,750
)
 
56,250

 
0.75
Total Intangible Assets
 
$
5,206,000

 
$
(2,779,742
)
 
$
2,426,258

 
1.89

 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Gross Carrying Amount
    
Accumulated Amortization
    
Impairment Loss
 
Net Carrying Amount
 
Weighted-Average Remaining Life
 
 
 
 
(in years)
Acquired Product Marketing Rights
 
$
5,056,000

 
$
(1,421,996
)
 
$
—

 
$
3,634,004

 
2.92
Sales and Marketing Agreement
 
2,553,000

 
(691,438
)
 
(1,861,562
)
 
—

 
—
Acquired Assembled Workforce
 
150,000

 
(18,750
)
 
—

 
131,250

 
1.75
Total Intangible Assets
 
$
7,759,000

 
$
(2,132,184
)
 
$
(1,861,562
)
 
$
3,765,254

 
2.88

Amortization of intangibles for the next five years and thereafter is expected to be as follows:
 
 
Estimated
 
 
Amortization
For the Years Ending December 31,
    
Expense
 
 
 
2020
 
$
1,320,246

2021
 
1,106,012

2022
 
—

2023
 
—

2024
 
—

Thereafter
 
—

Total future amortization expense
 
$
2,426,258