Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2022

Intangible Assets and Goodwill

Intangible Assets and Goodwill

6. Intangible Assets and Goodwill

Intangible assets related to capitalized milestones under license agreements consisted of the following (in thousands):

	September 30,		December 31,
	2022		2021
Intangible asset - milestones	$	79,850	$	79,850
Accumulated amortization		(23,507)		(19,479)
Total intangible asset, net	$	56,343	$	60,371

The estimated useful lives of these intangible assets are based on the estimated remaining patent life of Rubraca and extend through 2031 in Europe and 2035 in the US.

We recorded amortization expense of $1.3 million and $4.0 million related to capitalized milestone payments during the three and nine months ended September 30, 2022, respectively. We recorded amortization expense of $1.3 million and $4.0 million related to capitalized milestone payments during the three and nine months ended September 30, 2021, respectively. Amortization expense is included in cost of sales – intangible asset amortization on the Consolidated Statements of Operations and Comprehensive Loss.

Estimated future amortization expense associated with intangibles is expected to be as follows (in thousands):

2022 (remaining three months)	$	1,343
2023		5,371
2024		5,371
2025		5,371
2026		5,371
Thereafter		33,516
	$	56,343

The financial statements are not prepared on a liquidation basis. If we are not able to raise additional capital in the near term and we file bankruptcy, it is likely that the fair value of the enterprise will decrease, which could result in the impairment of recorded long-term asset values, including goodwill.