Intangible Assets,Goodwill and Other Long Term Assets

12 Months Ended

Dec. 31, 2021

Disclosure of other non-current assets [abstract]

Intangible Assets,Goodwill and Other Long Term Assets

Note 12: - Intangible Assets, Goodwill and Other Long Term Assets

	December 31,
	2021		2020
	U.S. Dollars in thousands
Intangible Assets and Goodwill		153,592		1,492
Long term pre-paid expenses		71		81
Total Other Long-Term Assets	$	153,663	$	1,573

1. Intangible Assets:

(a) Composition and movement

	Intellectual property		Customer Relationships		Goodwill		Other Intangibles (1)		Total
	U.S. Dollars in thousands
Cost:
Balance as of January 1, 2020		-		-		-		1,492		1,492
Purchases								490		490
Business combination (b)		80,103		33,514		30,313		8,519		152,449
Balance as of December 31, 2021	$	80,103	$	33,514	$	30,313	$	10,501	$	154,431
Accumulated amortization and impairment:
Balance as of January 1, 2020		-		-		-		-		-
Amortization recognized in the year		477		179		-		183		839
Balance as of December 31, 2020		477		179		-		183		839
Amortized cost at December 31, 2021	$	79,626	$	33,335	$	30,313	$	10,318	$	153,592

(1) Includes Assumed contract manufacturing agreement and distribution right of certain therapeutic products to be distributed in Israel, subject to Israeli Ministry of Health (“IL MOH”) marketing authorization. The Company was required to make certain upfront and milestone payments on account of such distribution rights. These payments are accounted for as long-term assets through obtaining IL MOH marketing authorization and will subsequently be amortized during the expected distribution right’s useful life.

(b) Acquisitions during the year:

Intellectual property, Customer Relations and Assumed Contract Manufacturing agreement which were acquired pursuant the Saol APA. See Note 5.

(c) Amortization:

Amortization expenses of intangible assets are classified in statement of profit or loss as follows:

	Year ended December 31,
	2021		2020		2019
	USD in thousands
Cost of Goods sold		574		-		-
Selling and marketing expenses		265		-		-
		839		-		-

(d) Allocation of goodwill to cash-generating units

	December 31,
	2021		2020
	U.S. Dollars in thousands
Proprietary		30,313		-

All the Goodwill recognized in 2021 was attributed to the Proprietary segment. See note 5.

The recoverable amount of the Proprietary segment was determined based on the value in use which is calculated as the expected estimated future cash flows from this cash-generating unit, as determined for the next five years and approved by the Company’s management. The discount rate of the cash flows is 11 %, The estimated recoverable amount of the unit was higher than its carrying amount, and therefore there was no need to provide for impairment.

Sensitivity test preformed with changing the discount rate and the growth rate did not change the result.