Intangible Assets

9 Months Ended

Sep. 30, 2018

Intangible Assets

Intangible Assets

6. Intangible Assets

Intangible assets consist of patent defense costs, primarily legal fees incurred in conjunction with defending patents for Oxtellar XR and Trokendi XR.

The following sets forth the gross carrying amount and related accumulated amortization of the intangible assets, in thousands of dollars:

	Weighted-				September 30,		December 31,
	Average Life				2018		2017
					(unaudited)
Capitalized patent defense costs	4.25	-	8.50	years	$	44,625	$	44,185
Less accumulated amortization						(12,053)		(8,166)
					$	32,572	$	36,019

In March 2017, the Company entered into two settlements with several companies related to Trokendi XR patent litigation. The remaining unamortized aggregate capitalized patent defense costs for Trokendi XR have subsequently been amortized over the reduced remaining useful life of the patents at issue, or January 1, 2023. This is the date the Company is obligated under the settlements to grant a non-exclusive license to the patents at issue.

Amortization expense on intangible assets was approximately $1.3 million and $3.9 million for the three and nine months ended September 30, 2018, and approximately $4.1 million and $5.5 million for the three and nine months ended September 30, 2017, respectively.

No indicators of impairment were identified.