Note 7 - Intangible Assets

6 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 7 - Intangible Assets

A summary of the Company’s definite-lived intangible assets as of December 31, 2024, and June 30, 2024, respectively, is as follows:

	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Life
	(in thousands)							(in years)
Acquired product technology rights	$	41,268	$	(14,791	)	$	26,477		10.3
Acquired technology rights		30,200		(6,719	)		23,481		13.2
Total intangible assets	$	71,468	$	(21,510	)	$	49,958		11.7

	June 30, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Life
	(in thousands)							(in years)
Acquired product technology rights	$	41,268	$	(13,184	)	$	28,084		10.7
Acquired technology rights		30,200		(5,831	)		24,369		13.8
Total intangible assets	$	71,468	$	(19,015	)	$	52,453		12.0

Carrying amounts are net of any impairment charges from prior periods. An intangible asset with zero net carrying amount at the end of a reporting period is not presented in the table of a future reporting period. Certain of the Company’s amortizable intangible assets include renewal options, extending the expected life of the asset. The renewal periods range between approximately 1 to 20 years depending on the license, patent or other agreement. Renewals are accounted for when they are reasonably assured. Intangible assets are amortized using the straight-line method over the estimated useful lives. Amortization expense of intangible assets was $1.2 million for both of the three months ended December 31, 2024, and 2023, and $2.5 million for both of the six months ended December 31, 2024, and 2023.

The following table summarizes the estimated future amortization expense to be recognized over the next five fiscal years and periods thereafter:

	Estimated Future Amortization Expense
	(in thousands)
2025 (remaining 6 months)	$	2,495
2026		4,989
2027		4,989
2028		4,989
2029		4,989
2030		2,847
Thereafter		24,660
Total future amortization expense	$	49,958

Acquired Product Technology Rights

The acquired product technology rights are related to the rights to production, supply and distribution agreements of various products pursuant to the acquisitions of the Pediatric Portfolio in November 2019 and the Neos Acquisition in March 2021.

ADHD Portfolio

As part of the Neos Acquisition, the Company acquired developed product technology for the production and sale of Adzenys and Cotempla. The formulations for the ADHD products are protected by patented technology. The estimated remaining economic life of these proprietary technologies is 14 years.

Karbinal

The Company acquired and assumed all rights and obligations pursuant to the supply and distribution agreement, as amended, with Tris Pharma, Inc. (“Tris”) for the exclusive rights to commercialize Karbinal in the United States (the “Tris Karbinal Agreement”). The Tris Karbinal Agreement’s initial term terminates in August of 2033, with an optional initial 20-year extension.

Poly-Vi-Flor and Tri-Vi-Flor

The Company acquired and assumed all rights and obligations pursuant to a supply and license agreement and various assignment and release agreements, including a previously agreed to settlement and license agreements (the “Poly-Tri Agreements”) for the exclusive rights to commercialize Poly-Vi-Flor and Tri-Vi-Flor in the United States.

Acquired Technology Rights

TRRP Technology

As part of the Neos Acquisition, the Company acquired time release resin particle (“TRRP”) proprietary technology, which is a proprietary drug delivery technology protected by the Company as a trade secret that allows the Company to modify the drug release characteristics of each of its respective products. The TRRP technology underlines each of the ADHD Portfolio core products and can potentially be used in future product development initiatives as well.