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Intangible Assets

9 Months Ended

Mar. 31, 2022

Note 9. Intangible Assets

Intangible assets, net as of March 31, 2022 and June 30, 2021 consisted of the following:


	Weighted	Gross Carrying Amount				Accumulated Amortization				Intangible Assets, Net
	Avg. Life	March 31,		June 30,		March 31,		June 30,		March 31,		June 30,
(In thousands)	(Yrs.)	2022		2021		2022		2021		2022		2021
Definite-lived:
KUPI product rights	15	$	35,000	$	83,955	$	(972)	$	(4,198)	$	34,028	$	79,757
KUPI trade name	2		2,920		2,920		(2,920)		(2,920)		—		—
KUPI other intangible assets	15		19,000		19,000		(8,045)		(7,095)		10,955		11,905
Silarx product rights	15		20,000		20,000		(5,889)		(4,889)		14,111		15,111
Other product rights	10		37,417		35,918		(12,160)		(8,856)		25,257		27,062
Total definite-lived		$	114,337	$	161,793	$	(29,986)	$	(27,958)	$	84,351	$	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	$	(29,986)	$	(27,958)	$	88,351	$	137,835

For the three months ended March 31, 2022 and 2021, the Company recorded amortization expense of $2.6 million and $3.9 million, respectively. For the nine months ended March 31, 2022 and 2021, the Company recorded amortization expense of $10.4 million and $21.1 million, respectively.

In November 2021, the Company announced the 2021 Restructuring Plan, which includes the phase out of two low-margin prescription products at its KUPI facility in Seymour, Indiana. 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 during the second quarter of Fiscal 2022. 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 March 31, 2022:


(In thousands)	Amortization
Fiscal Year Ending June 30,	Expense
2022	$	2,505
2023		10,296
2024		10,021
2025		9,827
2026		9,173
Thereafter		42,529
	$	84,351