Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

7.	Goodwill and Intangible Assets

Goodwill

The Company acquired the assets of Canadian pharmaceutical company Alveda Pharmaceuticals, Inc., in November 2015. As a result of the acquisition, we recorded goodwill of $0.4 million. We assess the recoverability of the carrying value of goodwill in the fourth quarter of each year, and whenever events occur or circumstances change that would, more likely than not, reduce the fair value of our reporting unit below its carrying value. There have been no events or changes in circumstances that would have reduced the fair value of our reporting unit below its carrying value from December 31, 2015 through March 31, 2016. No impairment losses were recognized during the three months ended March 31, 2016.

Changes in goodwill during the quarter ended March 31, 2016 were as follows (in thousands):

	Goodwill
December 31, 2015	$	426
Acquisition		-
Impairments		-
Foreign currency translation		33
March 31, 2016	$	459

Intangible Assets

The following sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of March 31, 2016 and December 31, 2015.

	March 31, 2016						Weighted Average
	Gross Carrying		Accumulated		Net Carrying		Remaining Amortization
	Amount		Amortization		Amount		Period
Trademarks and Technology	$	48,611	$	(1,269)	$	47,343		14.62
In process research and development ("IPR&D")		4,015		-		4,015		N/A - Indefinite lived
Customer relationships		3,688		(131)		3,557		9.63
Total	$	56,315	$	(1,399)	$	54,916

	December 31, 2015						Weighted Average
	Gross Carrying		Accumulated		Net Carrying		Remaining Amortization
	Amount		Amortization		Amount		Period
Trademarks and Technology	$	47,679	$	(651)	$	47,028		14.8
In process research and development ("IPR&D")		3,875		-		3,875		N/A - Indefinite lived
Customer relationships		3,460		(43)		3,417		9.9
Total	$	55,014	$	(694)	$	54,320

We test for impairment of definite-lived intangible assets when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the three months ended March 31, 2016 and March 31, 2015, and therefore no impairment loss was recognized in the three months ended March 31, 2016 and March 31, 2015.

Changes in intangibles during the three months ended March 31, 2016 were as follows (in thousands):

	Trademarks and				Customer
	Technology		IPR&D		Relationships
December 31, 2015	$	47,028	$	3,875		3,417
Acquisition		330		-		-
Amortization		(618)		-		(87)
Foreign currency translation		603		140		227
March 31, 2016		47,343		4,015		3,557

Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the intangible assets, annual amortization expense on product rights and other related intangibles as of March 31, 2016 over the remainder of 2016 and each of the next five years is estimated to be as follows ($ in thousands):

	Amortization
	Expense *
2016 (remainder of the year)	$	2,203
2017		2,937
2018		2,937
2019		2,937
2020		2,937
2021		2,937

*IPR&D amounts will be amortized once products become saleable, and are not included in the table above.

- 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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