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Intangible Assets
 9 Months Ended
Sep. 30, 2013
Purchased Patents  
Purchased Patents

7.  Intangible Assets

 

The Company purchased certain patents from Shire Laboratories, Inc. in connection with a 2005 purchase agreement.  Patent defense costs have been incurred in connection with a Complaint filed against Watson on August 7, 2013 related to patents for Oxtellar XR (see Part II, Item 1, Legal Proceedings). The following sets forth the gross carrying amount and related accumulated amortization of these intangible assets, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

 

 

 

 

 

 

 

(unaudited)

 

December 31, 2012

 

 

Weighted-

 

Gross Carrying

 

Accumulated

 

Gross Carrying

 

Accumulated

 

 

Average Life

 

Amount

 

Amortization

 

Amount

 

Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased patents

 

10.0

 

$
2,292 

 

$
1,781 

 

$
2,292 

 

$
1,609 

Patent defense costs

 

n/a

 

$
306 

 

$

 —

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization expense was approximately $57,000 for each of the three month periods ended September 30, 2013 and 2012 and was approximately $172,000 for each of the nine month periods ended September 30, 2013 and 2012. The estimated annual aggregate amortization expense through December 31, 2015 is $229,000.  

 

There were no indicators of impairment identified at September 30, 2013 or December 31, 2012.