Intangible Assets and Royalty Agreement (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets are summarized as follows (in thousands):



		December 31,
		2015			2014
	Weighted Average Amortization Lives	Cost			Cost
Licenses (a) (b)	10 years	$	1,009		$	1,009
Patents & Know How (b)	17 years	8,001			7,891
Customer & Supplier Relationships (b)	14 years	3,761			3,761
Tradenames & Trademarks (b)	indefinite	1,008			1,008
In Process Research & Development (b)	n/a	25			25
Patents in Process (c)	n/a	1,823			1,082
Total		15,627			14,776
Less Accumulated amortization		(4,864		)	(3,931		)
Net		$	10,763		$	10,845

(a)

On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. in the amount of $996,000. Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products. The Company is also obligated to pay a $50,000 minimum annual royalty payment over the life of the license. As of December 31, 2015, this license had a remaining net book value of approximately $110,000.

(b)

On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for Customer & Supplier Relationships of $3,761,000, Patents & Know-How of $7,690,000, Licenses of $13,000, Trade Names & Trademarks of $1,008,000 and In-Process Research & Development of $25,000. During 2015 approximately $110,000 of additional costs associated with patents granted during the year were capitalized and included in Patents & Know- How subject to amortization.


(c)	Capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization.

Estimated future amortization expense of intangible assets

Expected future amortization of intangible assets as of December 31, 2015, is as follows (in thousands):



	Estimated
	Amortization
Year ending December 31,	Expense
2016	$	936
2017	846
2018	836
2019	836
2020	836
Thereafter	5,465
	$	9,755