Annual report pursuant to Section 13 and 15(d)

Goodwill

Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were as follows:



Balance as of December 31, 2017	$	12,290,247
Goodwill from acquisition of Avadel's pediatric products	3,778,001
Goodwill purchase price allocation measurement period adjustment from acquisition of TRx Pharmaceuticals	(1,659,160		)
Balance as of December 31, 2018 and as of December 31, 2019	$	14,409,088

The Company consists of one reporting unit. A portion of the Company's reporting unit was disposed of as part of the Aytu Divestiture, which closed on November 1, 2019. To determine the amount of goodwill allocated to the discontinued operation, the Company assigned goodwill based on the relative fair values of the portion of the reporting unit disposed and the portion of the reporting unit remaining (relative to the total estimated enterprise fair value of Cerecor on the closing date of the Aytu Divestiture on November 1, 2019). The estimated fair value of the reporting unit disposed was determined based on the estimated purchase consideration received as part of the Aytu Divestiture. The estimated fair value of the reporting unit remaining was determined based on the estimated enterprise fair value of Cerecor on the closing date of the Aytu Divestiture, which was based on the Company's market capitalization on November 1, 2019 and increased by an estimated enterprise value control premium of 20% calculated using historical market data of similar transactions at comparable companies. Based on the relative fair value approach, the Company assigned 12.2% or $2.0 million of its total goodwill balance to the Pediatric Portfolio and therefore the goodwill balance from continuing operations was $14.4 million as of December 31, 2018 and December 31, 2019.

There were no accumulated impairment losses to goodwill at December 31, 2019 or December 31, 2018.