Intangibles, net

3 Months Ended

Mar. 31, 2017

Note 4

Intangibles, net:

Set forth below is a detailed listing of definite-lived intangible assets:

	March 31, 2017			December 31, 2016
	(unaudited)
Core technology	$	5,974		$	5,974
Product technology		2,000			2,000
Customer relationships		6,900			6,900
Tradenames		1,500			1,500
Distribution rights		900			-
		17,274			16,374
Accumulated amortization		(3,416	)		(2,962	)
Patents and licensed technologies, net	$	13,858		$	13,412

Related amortization expense was $454 for each of the three months ended March 31, 2017 and 2016.

Estimated amortization expense for amortizable patents and licensed technologies assets for the future periods is as follows:

Remaining 2017	$	1,626
2018		2,133
2019		2,132
2020		1,615
2021		1,415
Thereafter		4,937
Total	$	13,858

As discussed in Note 1, effective January 1, 2017 the Company follows the guidance in ASU 2017-01, which provides a new framework for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the new guidance, companies are required to utilize an initial screening test to determine whether substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set is not a business. The Company has determined that its transaction with Ellipse in the first quarter of 2017 is considered to be an acquisition of a group of similar identifiable assets, therefore, the acquisition is not considered to be an acquisition of a business. The distribution rights asset has been assigned a value of $900 which is comprised of the present value of the license fee payments.