Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

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 assessed the recoverability of the carrying value of goodwill at October 1, 2018. Whenever events occur or circumstances change, more likely than not, the company is likely to reduce the fair value of its 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. No impairment losses were recognized during the year ended December 31, 2018.

Changes in goodwill during the two years ended December 31, 2018 and December 31, 2017 were as follows (in thousands):

	Goodwill
December 31, 2016	$	446
Foreign currency translation	25
December 31, 2017	471
Foreign currency translation	(1)
December 31, 2018	$	470

Intangible Assets

The following sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2018 and December 31, 2017 for those assets that are not already fully amortized (in thousands):

	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization Period
Trademarks and Technology	$	40,169	$	(8,239)	$	31,930	11.8
Product acquisition costs	13,308		—		13,308		N/A - See description below
In-process research and development (“IPR&D”)	719		—		719		N/A - See description below
Customer relationships	3,557		(1,139)		2,418		6.9
Total	$	57,753	$	(9,378)	$	48,375

	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization Period
Trademarks and Technology	$	40,380	$	(5,684)	$	34,696	12.8
Product acquisition costs	14,682		—		14,682		N/A - See description below
In-process research and development (“IPR&D”)	3,629		—		3,629		N/A - See description below
Customer relationships	3,783		(773)		3,010		7.9
Total	$	62,474	$	(6,457)	$	56,017

Changes in intangibles during the year ended December 31, 2018 were as follows (in thousands):

	Product Acquisition Costs		Trademarks and Technology		IPR&D		Customer Relationships
Balance at December 31, 2017	$	14,682	$	34,696	$	3,629	$	3,010
Amortization	—		(2,727)		—		(369)
Intangible assets placed in service	—		1,346		(1,346)		—
Loss on impairment	(716)		(7)		(1,201)		—
Foreign currency translation	(658)		(1,378)		(363)		(223)
Balance at December 31, 2018	$	13,308	$	31,930	$	719	$	2,418

The Company recorded amortization expense of $3.1 million, $2.9 million and $2.8 million in 2018, 2017 and 2016, respectively. In addition, the Company recorded impairment loss of $0.7 million and $1.2 million related with product acquisition costs and IPR&D respectively in 2018, and nil and $0.1 million impairment loss related with IPR&D and product acquisition costs in 2017.  

During the preparation of the 2018 consolidated financial statements, management identified a misclassification within the product acquisition costs and in-process research and development (“IPR&D”) categories for the year ended December 31, 2017. Accordingly, a reclassification has been made to the December 31, 2017 balances to decrease IPR&D and increase product acquisition costs in the amount of $14.7 million. The correction has no impact on the Company’s consolidated financial statements.

Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the intangible assets, annual amortization expense on trademarks and technology and customer relationships for each of the following years is estimated to be as follows (in thousands):

Year ending December 31,	Amortization Expense *
2019	$	3,096
2020	3,096
2021	3,096
2022	3,096
2023	3,096
Thereafter	18,868
Total	$	34,348

*IPR&D and Product Acquisition Costs are assessed for impairment at least annually and will be amortized once products are commercialized, and are not included in the table.

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

Intangibles Category	Amortizable Life
Product Acquisition Costs	10 years
Trademarks & Technology	15 years
Customer Relationships	10 years