Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.19.1
Intangible Assets
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets

The changes in intangible assets for the years ended December 31, 2018 and 2017 were as follows:
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:
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
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
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
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:
 
 
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