Note 5

Intangible Assets, net:

	December 31, 2017			December 31, 2016

Core technology	$	5,700		$	5,974
Product technology		1,500			2,000
Customer relationships		6,900			6,900
Tradenames		1,500			1,500
Distribution rights		286			-
		15,886			16,374
Accumulated amortization		(4,561	)		(2,962	)
Intangible assets, net	$	11,325		$	13,412

Related amortization expense was $1,995 and $1,815 for each of the years ended December 31, 2017 and 2016.

During the year ended December 31, 2017, the Company wrote off core technology of $274 and accumulated amortization of $251 related to the discontinuance of the MELAfind product. The value written off of $23 was recorded in cost of revenues.

Definite-lived intangible assets are tested for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company recognizes an impairment loss when and to the extent that the recoverable amount of an intangible asset is less than its carrying value. For the year ended December 31, 2017 the Company recognized a total of $500 of intangible asset impairment charges with respect to product technology, which were recognized as cost of revenues charges on the Company's consolidated statement of operations and comprehensive loss. The impairment charge equals the excess of the carrying value over the asset's fair value. The fair value of the product technology was determined based on Level 3 inputs, which included estimated revenues attributable to product technology, discount and growth rates, as well royalty rates acceptable in the market.

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 asset 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 single asset, therefore, the acquisition is not considered to be an acquisition of a business. The distribution rights asset had been assigned a value of $900 which was comprised of the present value of the license fee payments. Effective August 2017 the transaction was terminated and a new agreement was negotiated among the parties. See Note 1 for further details regarding these agreements. As a result of the termination of the old agreement and the signing of the new agreements the Company reversed the intangible asset and corresponding liability recorded on March 1, 2017 and recorded the distribution rights at the present value of the payments under the new agreements, amounting to $286. The reversal of the aforementioned intangible asset and corresponding liability resulted in a $40 gain that was recognized in sales and marketing expense.

Estimated amortization expense for the above amortizable intangible assets for the future periods is as follows:

2018	$	1,905
2019		1,605
2020		1,470
2021		1,410
2022		1,410
Thereafter		3,525
Total	$	11,325