Intangible Asset

9 Months Ended

Sep. 30, 2020

Intangible Assets Net Excluding Goodwill [Abstract]

INTANGIBLE ASSET

5. INTANGIBLE ASSET

On August 15, 2019, the Company received FDA approval of WAKIX^® (pitolisant) for the treatment of excessive daytime sleepiness (“EDS”) in adult patients with narcolepsy. This event triggered a milestone payment of $75,000 associated with the License Agreement which the Company capitalized as an intangible asset and paid in November of 2019. The Company determined a useful life of 10 years for such intangible asset, and, as of September 30, 2020 the remaining useful life was 9 years. The Company expects the annual amortization to be $7,407 for the next five years. Prior to this event, all other milestones associated with the License Agreement were expensed through research and development as they did not meet the criteria to be recognized as an intangible asset.

The gross carrying amount and net book value of the intangible asset is as follows:

	As of
	September 30, 2020			December 31, 2019
Gross Carrying Amount	$	75,000		$	75,000
Accumulated Amortization		(8,375	)		(2,815	)
Net Book Value	$	66,625		$	72,185