Intangible Assets and Royalty Agreement (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets are summarized as follows (in thousands):



		December 31,
		2016			2015
	Weighted Average Amortization Lives	Cost			Cost
Licenses (a) (b) (c) (d)	7 years	$	1,399		$	1,009
Patents & Know How (b) (d)	19 years	14,839			8,001
Customer & Supplier Relationships (b) (d)	13 years	9,091			3,761
Tradenames & Trademarks (d)	indefinite	1,458			1,008
Non-Compete Agreements	4 years	830			—
In Process Research & Development (b)	various	25			25
Patents in Process (c)	various	2,618			1,823
Total		30,260			15,627
Less Accumulated amortization and impairment charges		(6,992		)	(4,864		)
Net		$	23,268		$	10,763

(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, 2016 the license had a remaining net book value of approximately $10,000.

(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, Tradenames & Trademarks of $1,008,000 and In-Process Research & Development of $25,000. For the twelve months ended December 31, 2016, approximately $48,000 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization over the life of the patents.


(c)	Patents in Process consist of 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.


(d)	On January 13, 2016, the Company acquired Stability. As a result, the Company recorded intangible assets for Patents & Know - How of $6,790,000, Customer Relationships of $5,330,000, Non - compete agreements of $830,000, Tradenames & Trademarks of $450,000 and Licenses of $390,000.

Estimated future amortization expense of intangible assets

Expected future amortization of intangible assets as of December 31, 2016, is as follows (in thousands):



	Estimated
	Amortization
Year ending December 31,	Expense
2017	$	2,034
2018	1,829
2019	1,829
2020	1,622
2021	1,622
Thereafter	12,874
	$	21,810