Intangible Assets

9 Months Ended

Mar. 31, 2023

Intangible Assets

Intangible Assets

Note 9. Intangible Assets

Intangible assets, net as of March 31, 2023 and June 30, 2022 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.)	2023		2022		2023		2022		2023		2022
Definite-lived:
KUPI trade name	2	$	2,920	$	2,920	$	(2,920)	$	(2,920)	$	—	$	—
KUPI other intangible assets	15		—		19,000		—		(8,362)		—		10,638
Silarx product rights	15		18,531		20,000		(6,693)		(6,222)		11,838		13,778
Other product rights	7		17,242		16,242		(10,173)		(8,479)		7,069		7,763
Total intangible assets, net		$	38,693	$	58,162	$	(19,786)	$	(25,983)	$	18,907	$	32,179

In conjunction with the Restructuring Support Agreement, the Company, with the knowledge of its lenders, has begun to explore the sale of its Seymour, Indiana facility. The Company currently seeks to sell the facility and its contract manufacturing business to a pharmaceutical manufacturer that could benefit from the site’s exceptional history of FDA compliance, and with whom we would partner with to continue manufacturing our products at the site. The Company’s existing ANDAs and NDAs are not part of any potential sale. However, the KUPI other intangible assets, which consists of the Company’s contract manufacturing business associated with the Seymour, Indiana facility, is expected to be included in any potential sale of the facility. As such, the Company reclassified the KUPI other intangible assets to the assets held for sale caption in the Consolidated Balance Sheets as of March 31, 2023. For further discussion of the Chapter 11 Cases and Restructuring Support Agreement, see Note 20 “Subsequent Events.”

For the three months ended March 31, 2023 and 2022, the Company recorded amortization expense of $1.0 million and $2.6 million, respectively. For the nine months ended March 31, 2023 and 2022, the Company recorded amortization expense of $3.6 million and $10.4 million, respectively.

Future annual amortization expense consists of the following as of March 31, 2023:

(In thousands)	Amortization
Fiscal Year Ending June 30,	Expense
2023	$	727
2024		2,607
2025		2,573
2026		2,406
2027		2,269
Thereafter		8,325
	$	18,907