Note 7

Intangible Assets, net:

Set forth below is a detailed listing of definite-lived intangible assets as of December 31, 2018:

	Balance		Accumulated Amortization			Intangible assets, net

Core technology	$	5,700	$	(1,995	)	$	3,705
Product technology		2,000		(1,400	)		600
Customer relationships		6,900		(2,415	)		4,485
Tradenames		1,500		(525	)		975
	$	16,100	$	(6,335	)	$	9,765

	December 31, 2018			December 31, 2017 (as restated)

Core technology	$	5,700		$	5,700
Product technology		2,000			2,000
Customer relationships		6,900			6,900
Tradenames		1,500			1,500
Distribution rights		-			286
		16,100			16,386
Accumulated amortization		(6,335	)		(4,561	)
Intangible assets, net	$	9,765		$	11,825

Related amortization expense was $1,834 and $1,995 for each of the years ended December 31, 2018 and 2017. Intangible assets consist of core technology, product technology, customer relationships, trademark and distribution rights. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three to ten years.

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. Effective March 1, 2017, the Company entered into agreements to license the exclusive U.S. distribution rights for the Ellipse family of products, Nordlys, through December 31, 2019. The agreements were to be renewed if certain minimum purchase requirements were achieved and an approximate $33 monthly license fee was paid, for a contractual total license fee of $1.1 million over the Initial Term. The Company determined that its transaction with Ellipse in the first quarter of 2017 was 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 new agreements were negotiated among the parties. 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 during the year ended December 31, 2017.

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.

During 2018 related to the discontinuance of the Nordlys product line, the Company wrote off distribution rights of $286 and accumulated amortization of $60. In addition, the Company wrote off distribution liabilities of $237 as a result of the termination of the agreements on May 31, 2018. The net value written off of $11 was recorded in selling and marketing expense.

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

2019	$	1,810
2020		1,610
2021		1,410
2022		1,410
Thereafter		3,525
Total	$	9,765