Note 6 - Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and

ntangible

assets

The following table sets forth the changes in the carrying amount of goodwill for the years ended

December

31,

2015

and

2016

(in thousands):

Balance at December 31, 2014	$	50
Foreign currency adjustment		(5	)
Balance at December 31, 2015		45
Imugen acquisition (Note 17)		2,645
Immunetics acquisition (Note 17)		1,177
Impairment charge – Boulder goodwill		(43	)
Foreign currency adjustment		(2	)
Balance at December 31, 2016	$	3,822

Acquired intangible assets consisted of the following as of

December

31,

2016

and

2015

(in thousands):

	As of December 31 , 2016
	Amortization period (years)				Gross carrying amount		Accumulated Amortization		Net carrying amount
Imugen in-process research and development			Indefinite		$	9,200	$	—	$	9,200
Imugen technology - clinical			15			5,100		170		4,930
Imugen customer relationships			10			2,700		135		2,565
Imugen trademarks / trade names			16			1,900		59		1,841

Immunetics in-process research and development			Indefinite			6,970		—		6,970
Immunetics technology – clinical			15			860		9		851
Immunetics customer relationships		5	-	11		400		11		389
Immunetics trade name			5			290		9		281
Immunetics grants			2			50		4		46

Other		5	-	10		632		518		114
Total					$	28,102	$	915	$	27,187

	As of December 31, 2015
	Amortization period (years)				Gross carrying amount		Accumulated Amortization		Net carrying amount
Boulder in-process research and development			Indefinite		$	1,782	$	—	$	1,782

Other		5	-	10		758		579		179
Total					$	2,540	$	579	$	1,961

The weighted average amortization period of our finite-lived intangible assets is

years. Amortization expense for the years ended

December

31,

2016,

2015

and

2014

was

$435,000,

$92,000

and

$43,000,

respectively.

Amortization expense related to acquired intangible assets is estimated at

$1.0

million per year for the years ending

2017

and

2018

and

$0.9

million per year for each of the years ending

2019

through

2021.

The acquired IPR&D assets include

$9.2

million for IPR&D acquired in conjunction with the Imugen acquisition and

$7.0

million for IPR&D acquired in conjunction with the Immunetics acquisition. During the

fourth

quarter of

2016,

we recorded a non-cash IPR&D impairment charge of

$1.4

million related to an assay for Lyme disease that was acquired in conjunction with the Boulder acquisition when it was determined that the Boulder IPR&D will not directly yield any products.

IPR&D acquired in a business combination is capitalized at fair value and is subject to impairment testing at least annually until the underlying project is completed. Once the project is completed, the carrying value of IPR&D is amortized over the estimated useful life of the asset. Post-acquisition research and development expenses related to the acquired IPR&D are expensed as incurred. For more information on the acquisitions, see Note

“Acquisition activity”.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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