Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2017, through June 30, 2018. No impairment losses were recognized during the six months ended June 30, 2018.

Changes to the carrying value in goodwill during the six months ended June 30, 2018 and the year ending December 31, 2017 were as follows (in thousands):



	Goodwill
Goodwill balance at December 31, 2016	$	446
Foreign currency translation	25
Goodwill balance at December 31, 2017	471
Foreign currency translation	(26		)
Goodwill balance at June 30, 2018	$	445

Intangible Assets

The following sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of June 30, 2018 and December 31, 2017 (in thousands).



	June 30, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Amortization Period (Years)
Trademarks and Technology	$	39,294	$	(6,875	)	$	32,419	12.4
In process research and development ("IPR&D")	17,831		—			17,831		N/A
Customer relationships	3,637		(957		)	2,680		7.6
Total	$	60,762	$	(7,832	)	$	52,930



	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Amortization Period (Years)
Trademarks and Technology	$	40,380	$	(5,684	)	$	34,696	12.8
In-process research and development ("IPR&D")	18,311		—			18,311		N/A
Customer relationships	3,783		(773		)	3,010		7.9
Total	$	62,474	$	(6,457	)	$	56,017

Changes in intangibles during the six months ended June 30, 2018 were as follows (in thousands):



	Trademarks and Technology			IPR&D			Customer Relationships
Balance at January 1, 2018	$	34,696		$	18,311		$	3,010
Amortization	(1,363		)	—			(187		)
Loss on impairment	(7		)	(15		)	—
Foreign currency translation	(907		)	(465		)	(143		)
Balance at June 30, 2018	$	32,419		$	17,831		$	2,680

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 June 30, 2018 over the remainder of 2018 and each of the next five years is estimated to be as follows (in thousands):



	Amortization Expense *
2018 (remainder of the year)	$	1,550
2019	3,099
2020	3,099
2021	3,099
2022	3,099
2023	3,099
Thereafter	18,054
Total	$	35,099

*IPR&D amounts are assessed for impairment at least annually and will be amortized once products are approved, including the product's respective manufacturing process approvals, and are not included in the table.

The useful lives of the Company’s intangibles are as follows:



Intangibles Category	Amortizable Life
Trademarks and Technology	15
Customer Relationships	10

- 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.

+ References + Details