Intangible Assets

6 Months Ended

Jun. 30, 2015

Intangible Assets

Intangible Assets

6.  Intangible Assets

The Company purchased certain patents from Shire Laboratories, Inc. pursuant to a 2005 purchase agreement. These patents are being amortized over the weighted average life of the patents purchased in that transaction. Deferred legal fees have been incurred in connection with litigation related to patents for Oxtellar XR and Trokendi XR (see Part II, Item I—Legal Proceedings in this Quarterly Report on Form 10-Q). The following sets forth the gross carrying amount and related accumulated amortization of these intangible assets, in thousands:

		June 30, 2015
		(unaudited)				December 31, 2014
	Weighted-	Gross Carrying		Accumulated		Gross Carrying		Accumulated
	Average Life	Amount		Amortization		Amount		Amortization
Purchased patents	10.0	$	2,292	$	2,182	$	2,292	$	2,067
Deferred legal fees		$	11,487	$	—	$	5,209	$	—

Deferred legal fees will be capitalized as part of the patents upon successful outcome of the on-going litigation related to these patents, at which point amortization of those costs will begin. If the Company is unsuccessful, the deferred legal fees will be expensed at that time. Four U.S. patents have been issued covering Oxtellar XR and six U.S. patents have been issued covering Trokendi XR, with the patents expiring no earlier than 2027.

Amortization expense associated with purchased patents was approximately $57,000 for each of the three months ended June 30, 2015 and 2014 and was approximately $115,000 for each of the six months ended June 30, 2015 and 2014. The estimated annual aggregate amortization expense through December 31, 2015 is $229,000. The net book value of intangible assets as of June 30, 2015 was approximately $11.6 million and December 31, 2014 was approximately $5.4 million.

There were no indicators of impairment identified at June 30, 2015 or December 31, 2014.