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Note 6 - Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
6.
 Goodwill and Intangible Assets
 
The Company completes its annual impairment test on
October 1
each year, or more frequently if triggering events indicate a possible impairment. The Company continually evaluates financial performance, economic conditions and other relevant developments in assessing if an interim period impairment test is necessary. The Company's goodwill balance at both
December 31, 2017
and
2016
was
$6.9
million. There have been
no
changes to the carrying value of goodwill during the years ended
December 31, 2017
and
2016.
 
In connection with the Merger, the Company acquired indefinite-lived In-Process Research and Development Assets (“IPR&D”) RES-
529
and RES-
440,
with estimated fair values of
$8.6
million and
$1.0
million, respectively. The Company’s novel
PI3K/Akt/mTOR
pathway inhibitor, RES-
529,
is in preclinical development for oncology. Through a series of in vitro and in vivo animal models, RES-
529
has been shown to have activity in several cancer types due to its ability to target and inhibit the
PI3K/Akt/mTOR
signal transduction pathway. RES-
529
is a
first
-in-class inhibitor of both
TORC1
and
TORC2
that is mechanistically differentiated from other
PI3K/Akt/mTOR
pathway inhibitors currently in development. RES-
529
has shown activity in both in vitro and in vivo glioblastoma animal models and has been demonstrated to be orally bioavailable and can cross the blood brain barrier.
 
In
August 2016,
the Board of Directors determined that RES-
440,
a “soft” anti-androgen compound for the treatment of acne vulgaris, was outside the Company
’s core product focus, and was
not
a priority. Therefore, future development efforts were abandoned in the
third
quarter of
2016.
In connection with its review of such abandonment, the Company concluded RES-
440
was impaired in its entirety. The abandonment resulted in a net impairment charge of
$1.0
million and was recorded as a component of research and development expenses within the Company’s consolidated statement of operations for the year ended
December 31, 2016.
The abandonment also resulted in an income tax benefit of
$0.4
million.