Goodwill and Intangible Assets, net

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of the USWM Acquisition purchase price over the fair value of the tangible and identifiable intangible net assets acquired. Refer to Note 3 for further discussion on the USWM Acquisition.

Intangible assets also includes: patent defense costs, which are deferred legal fees incurred in conjunction with defending patents for Oxtellar XR and Trokendi XR; an acquired IPR&D asset; and acquired developed technology and product rights. For

intangible assets, excluding the acquired IPR&D asset, the Company amortizes these costs over the useful life of the respective intangible assets.

The following table sets forth the gross carrying amount and related accumulated amortization of goodwill and intangible assets (dollars in thousands):


	Weighted- Average Life (Years)	June 30, 2020		December 31, 2019
	(unaudited)
Goodwill		$	88,095	$	—
Acquired In-process Research & Development		150,000		—
Intangible assets subject to amortization:
Acquired Developed Technology and Product Rights	10.50 - 12.50	$	237,000	$	—
Capitalized patent defense costs	2.50 - 6.80	43,514		43,375
Less accumulated amortization		(22,242)		(18,535)
Total intangible assets, net		$	408,272	$	24,840

U.S. patents covering Oxtellar XR and Trokendi XR will expire no earlier than 2027. As regards Trokendi XR, the Company entered into settlement agreements that allow third parties to enter the market by January 1, 2023, or earlier under certain circumstances.

Amortization expense on intangible assets was approximately $2.4 million and $3.7 million for the three and six month periods ended June 30, 2020, respectively, and approximately $1.3 million and $2.6 million for the three and six month periods ended June 30, 2019.

As of June 30, 2020, there were no identified indicators of impairment.