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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

NOTE 8 - GOODWILL AND INTANGIBLE ASSETS

The Company incurred $0.08 million and $0.02 million of legal patent costs that were capitalized during the year ended December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, the Company did not acquire any intangibles through an acquisition. During the year ended December 31, 2020, the Company acquired from Sera Labs customer relationships at a fair value of $7.1 million, $2.6 million in Tradename intangibles, $0.5 million in non-compete and $4.7 million in Goodwill from the acquisition of Sera Labs.

Intangible Asset Summary

As of December 31, 2021 and 2020, goodwill and intangible assets, net, consisted of the following (in thousands):

	2021			2020
Goodwill ⁽¹⁾	$	13,868		$	13,868

Intangible assets:
Acquired IPR&D – Chemistry ⁽²⁾	$	502		$	14,460
Pending patents – Cure Pharmaceutical		341			259
Intangible assets subject to amortization:
Acquired IPR&D – Chemistry ⁽²⁾		13,958			-
Customer relationships ⁽²⁾		7,110			7,110
Tradename ⁽²⁾		2,610			2,610
Noncompete ⁽²⁾		462			462
Intellectual property		972			972
Issued patents		1,034			1,044
Total intangible assets		26,989			26,917
Accumulated amortization		(4,701	)		(1,312	)
Intangible assets, net	$	22,288		$	25,605

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(1)	Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired from CHI and Sera Labs (see Note 20).

(2)	See Note 20 for information on the Mergers which were consummated in May 2019 and October 2020. During the year ended December 31, 2021, the Company completed two research and development projects that resulted in the company reclass approximately $13.9 million of IPR&D from intangibles not subject to amortization to intangibles subject to amortization.

Amortization expense was $3.4 million and $0.7 million for the years ended December 31, 2021 and 2020, respectively.

The estimated aggregate amortization expense over each of the next five years is as follows (in thousands):

2022	$	3,765
2023		3,592
2024		3,429
2025		2,583
2026		1,517
Thereafter		6,559
Total Amortization	$	21,445