Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

6. Goodwill and Intangible Assets

Changes in the carrying amounts of IPR&D assets and goodwill for the nine months ended September 30, 2017 were:


	IPR&D		Goodwill
Balance, beginning of period	$	14,477,019	$	18,758,421
Additions from the Mergers		22,389,000		15,573,822
Foreign currency translation adjustments		1,235,457		1,602,661
Impairment charges		—		(26,600,000	)

Balance, end of period	$	38,101,476	$	9,334,904

Our intangible assets consisted of the following:


	December 31, 2016
	Estimated Useful Lives		Gross Carrying Value		Accumulated Amortization			Net Book Value
Internally developed patents		6-10 years	$	624,454	$	(211,956	)	$	412,498
Acquired licenses		16-20 years		285,000		(219,800	)		65,200

Total intangible assets subject to amortization				909,454		(431,756	)		477,698
IPR&D assets		Indefinite		14,477,019		—			14,477,019

Total			$	15,386,473	$	(431,756	)	$	14,954,717


	September 30, 2017
	Estimated Useful Lives		Gross Carrying Value		Accumulated Amortization			Net Book Value
Internally developed patents		6-10 years	$	672,088	$	(239,211	)	$	432,877
Acquired licenses		16-20 years		285,000		(232,954	)		52,046

Total intangible assets subject to amortization				957,088		(472,165	)		484,923


	September 30, 2017
	Estimated Useful Lives		Gross Carrying Value		Accumulated Amortization			Net Book Value
IPR&D assets		Indefinite		38,101,476		—			38,101,476

Total			$	39,058,564	$	(472,165	)	$	38,586,399

Amortization expense of intangible assets subject to amortization totaled $14,257 and $11,764 for the three months ended September 30, 2017 and 2016, respectively, and $40,409 and $60,552 for the nine months ended September 30, 2017 and 2016, respectively. Amortization expense was classified as research and development expenses in the accompanying condensed consolidated statements of operations and comprehensive loss.

As of September 30, 2017, future estimated amortization expense is as follows:


Years ending December 31,
The remainder of 2017	$	14,257
2018		53,027
2019		48,227
2020		34,781
2021		14,222
2022 and thereafter		320,409

Total	$	484,923

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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