4. Intangible Assets, net

Intangible Assets, Net

The Company’s identifiable intangible assets, net, consist of the following (in thousands):

	December 31, 2016
	Cost/Fair Value			Accumulated Amortization		Impairments		Net
Amortizable intangible assets:
Licenses	$	3,100		$	315	$	-	$	2,785
QuaDPharma customer list		204			58		146		-
Polymed customer list		1,593			414		-		1,179
Polymed technology		3,712			437		-		3,275
Indefinite-lived intangible assets:
CDE in-process research and development (IPR&D)		1,884			-		248		1,636
Effect of currency translation adjustment		(411	)		-		-		(411	)
Total intangible assets, net	$	10,082		$	1,224	$	394	$	8,464

	June 30, 2017
	(unaudited)
	Cost/Fair Value			Accumulated Amortization			Impairments		Net
Amortizable intangible assets:
Licenses	$	4,650		$	731		$	-	$	3,919
QuaDPharma customer list		-			-			-		-
Polymed customer list		1,593			545			-		1,048
Polymed technology		3,712			583			-		3,129
Indefinite-lived intangible assets:										-
CDE in-process research and development (IPR&D)		1,636			66			80		1,490
Effect of currency translation adjustment		(405	)		(61	)		-		(344	)
Total intangible assets, net	$	11,186		$	1,864		$	80	$	9,242

As of December 31, 2016, licenses at cost include an Orascovery license of $0.4 million and a license purchased from Gland Pharma Ltd (“Gland”) of $2.7 million. The Orascovery license with Hanmi Pharmaceuticals Co. Ltd. (“Hanmi”) was purchased directly from Hanmi and is being amortized on a straight-line basis over a period of 12.75 years, the remaining life of the license agreement at the time of purchase. The license purchased from Gland is being amortized on a straight-line basis over a period of 5 years, the remaining life of the license agreement at the time of purchase. During the six months ended June 30, 2017, the Company purchased additional licenses from Gland for $1.6 million which are being amortized over a period of 5 years.

The remaining intangible assets were acquired in connection with the acquisitions of Athenex Pharma Solutions (formerly referred to as QuaDPharma), Polymed, and CDE. Intangible assets are amortized using an economic consumption model over their useful lives. The Athenex Pharma Solutions customer list was being amortized on a straight-line basis over 7 years. The Polymed customer list and technology are amortized on a straight-line basis over 6 and 12 years, respectively. The CDE in-process research and development, or IPR&D, will not be amortized until the related projects are completed. IPR&D will be tested annually for impairment, unless conditions exist causing an earlier impairment test (i.e. abandonment of project). During the six months ended June 30, 2017, the Company abandoned a project within IPR&D and therefore, the related balance of $0.1 million was written-off as impaired and is included within research and development expenses in the condensed consolidated statement of operations and comprehensive loss for the six months ended June 30, 2017. The weighted-average useful life for all intangible assets was 7.87 years as of June 30, 2017.

The Company recorded $0.4 million and $0.1 million of amortization expense for the three months ended June 30, 2017 and 2016, respectively, and $0.8 million and $0.3 million of amortization expense for the six months ended June 30, 2017 and 2016, respectively.