License and Acquired Intangibles, Net

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

License and Acquired Intangibles, Net

9. License and Acquired Intangibles, Net.

The following table presents the Company’s intangible assets at September 30, 2023 (in thousands):

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
License and acquired intangibles for RUZURGI®	$	33,569	$	2,838	$	30,731
License and acquired intangibles for FYCOMPA®		158,143		21,766		136,377
Total	$	191,712	$	24,604	$	167,108

The following table presents the Company’s intangible assets at December 31, 2022 (in thousands):

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
License and acquired intangibles for RUZURGI®	$	33,569	$	1,098	$	32,471
Total	$	33,569	$	1,098	$	32,471

The Company amortizes its definite-lived intangible assets using the straight-line method, which is considered the best estimate of economic benefit, over its estimated useful life. The useful lives for RUZURGI® and FYCOMPA® are approximately 14.5 years and 5 years, respectively.

The Company recorded approximately $0.6 million and $1.8 million in amortization expense related to the licensed and acquired intangibles for RUZURGI® during the three and nine months ended September 30, 2023, within selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). The Company recorded approximately $7.9 million and $21.8 million in amortization expense related to the licensed and acquired intangibles for FYCOMPA® during the three and nine months ended September 30, 2023, within cost of sales in the consolidated statement of operations and comprehensive income (loss). The Company recorded approximately $0.5 million in amortization expense related to the licensed and acquired intangibles for RUZURGI® during the three and nine months ended September 30, 2022, within selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Amortization of both the FYCOMPA® and RUZURGI® intangible assets are reported together as amortization of intangible assets in the consolidated statements of operations and comprehensive income (loss).

The following table presents future amortization expense the Company expects for its intangible assets (in thousands):

2023 (remaining three months)	$	8,487
2024		33,949
2025		33,949
2026		33,949
2027		33,949
Thereafter		22,825
Total	$	167,108

At September 30, 2023 and December 31, 2022, the weighted average amortization period remaining for intangible assets was 6.0 years and 14.0 years, respectively.

If all or a portion of the intangible assets are deemed not recoverable, the Company would estimate the fair value of the assets and record an impairment loss. There were no impairment charges recognized on definite-lived intangibles for the three and nine months ended September 30, 2023 or 2022.