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Intangible Assets

6 Months Ended

Dec. 31, 2021

Note 9. Intangible Assets

Intangible assets, net as of December 31, 2021 and June 30, 2021 consisted of the following:


	Weighted	Gross Carrying Amount				Accumulated Amortization				Intangible Assets, Net
	Avg. Life	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
(In thousands)	(Yrs.)	2021		2021		2021		2021		2021		2021
Definite-lived:
KUPI product rights	15	$	35,000	$	83,955	$	—	$	(4,198)	$	35,000	$	79,757
KUPI trade name	2		2,920		2,920		(2,920)		(2,920)		—		—
KUPI other intangible assets	15		19,000		19,000		(7,728)		(7,095)		11,272		11,905
Silarx product rights	15		20,000		20,000		(5,556)		(4,889)		14,444		15,111
Other product rights	10		37,417		35,918		(11,161)		(8,856)		26,256		27,062
Total definite-lived		$	114,337	$	161,793	$	(27,365)	$	(27,958)	$	86,972	$	133,835

Indefinite-lived:
KUPI in-process research and development	—	$	4,000	$	4,000	$	—	$	—	$	4,000	$	4,000
Total indefinite-lived			4,000		4,000		—		—		4,000		4,000
Total intangible assets, net		$	118,337	$	165,793	$	(27,365)	$	(27,958)	$	90,972	$	137,835

For the three months ended December 31, 2021 and 2020, the Company recorded amortization expense of $3.8 million and $8.7 million, respectively. For the six months ended December 31, 2021 and 2020, the Company recorded amortization expense of $7.8 million and $17.2 million, respectively.

In November 2021, the Company announced the 2021 Restructuring Plan, which includes the phase out of two low-margin prescription products at Kremers Urban Pharmaceuticals, Inc. The Company determined that the decision to discontinue these products along with continued competitive pressures in the market represent a “triggering event” and, therefore, performed an analysis to determine the potential impairment of certain long-lived assets, including its intangible assets. Based on the analysis, the Company recorded an impairment charge of $40.6 million related to the KUPI product rights intangible assets. The impairment charge is primarily a result of the decline in net sales and gross margin of certain product lines acquired in connection with the KUPI acquisition.

Future annual amortization expense consisted of the following as of December 31, 2021:


(In thousands)	Amortization
Fiscal Year Ending June 30,	Expense
2022	$	5,127
2023		10,295
2024		10,021
2025		9,827
2026		9,173
Thereafter		42,529
	$	86,972