INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 9: INTANGIBLE ASSETS AND GOODWILL 

Intangible assets at December 31, 2016 and December 31, 2015 are summarized in the table below:

December 31, 2016	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Definite-lived Intangible assets, estimated lives in years:
Patents, Taper DPI Intellectual Property, 10 years	$	9,708,700	$	(2,912,610	)	$	6,796,090
Transition Services Agreement, 1 year		194,200		(194,200	)		—
FDA 503B Registration & Compliance, 10 years		3,963,000		(285,116	)		3,677,884
Non-compete Agreement, 3 years		1,639,000		(393,056	)		1,245,944
Customer Relationships, 10 years		5,572,000		(400,874	)		5,171,126
Total Definite-lived Assets		21,076,900		(4,185,856	)		16,891,044
Trade Name and Brand, Indefinite		1,245,000		—			1,245,000
Balance, December 31, 2016	$	22,321,900	$	(4,185,856	)	$	18,136,044

December 31, 2015	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Intangible assets, estimated lives in years:
Patents, Taper DPI Intellectual Property, 10 years	$	9,708,700	$	(1,941,740	)	$	7,766,960
Transition Services Agreement, 1 year		194,200		(194,200	)		—
Balance, December 31, 2015	$	9,902,900	$	(2,135,940	)	$	7,766,960

The additions during the year ended December 31, 2016 were due to the acquisition of USC. Amortization expense for years ended December 31, 2016 and 2015 was $2,049,916 and $970,870, respectively.

Estimated amortization expense of definite-lived intangible assets at December 31, 2016 for each of the five succeeding years and thereafter is as follows: 

Year ending December 31,
2017	$	2,470,703
2018		2,470,703
2019		2,077,648
2020		1,924,370
2021		1,924,370
Thereafter		6,023,250
Total	$	16,891,044

Goodwill recorded at the acquisition of USC was approximately $2,225,000. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized but rather evaluated for impairment annually or more frequently, if indicators of impairment exist. If the impairment evaluations for goodwill indicate the carrying amount exceeds the estimated fair value, an impairment loss is recognized in an amount equal to that excess. In addition, the Company recorded a deferred tax liability of approximately $5,416,000 through acquisition goodwill. The carrying value of our goodwill as of December 31, 2016 was approximately $7,641,000. See Note 19 for the goodwill related to the tax impact of the acquisition of USC. 

We perform our annual impairment testing as of December 31 each year.  As of December 31, 2016, no impairment of goodwill or acquired intangibles was identified.  We are not aware of an event or change in circumstances that would indicate the carrying value of any assets held by USC may be impaired as of the measurement date.