(3)

Licensed Technology

On May 15, 2015, we acquired Abeona Therapeutics LLC which had a an exclusive license through Nationwide Children’s Hospital to the AB-101 and AB-102 patent portfolios for developing treatments for patients with Sanfilippo Syndrome Type A and Type B. The license is amortized over the life of the license of 20 years.

On August 3, 2016, we announced we entered into an agreement (the “EB Agreement”) with EB Research Partnership (“EBRP”) and Epidermolysis Bullosa Medical Research Foundation (“EBMRF”) to collaborate on gene therapy treatments for EB.

We also entered into a license with Stanford for the AAV-based gene therapy EB-201 (AAV DJ COL7A1) technology, and we shall perform preclinical development and perform clinical trials of a gene therapy treatment for EB based upon such in-licensed technology. EB-201 (AAV DJ COL7A1) is a pre-clinical candidate targeting a novel, AAV-mediated gene editing and delivery approach (known as homologous recombination) to correct gene mutations in skin cells (keratinocytes) for patients with recessive dystrophic epidermolysis bullosa (RDEB). The licenses are amortized over the life of the license of 20 years.

Licensed technology consists of the following:

	March 31,		December 31,
	2018		2017
Licensed technology	$	4,608,000	$	4,608,000
Less accumulated amortization		718,000		631,000
Licensed technology, net	$	3,890,000	$	3,977,000

Intangible assets consist of the following (in thousands):

	March 31, 2018				December 31, 2017
	Gross carrying value		Accumulated amortization		Gross carrying value		Accumulated Amortization
Amortizable intangible assets
Licensed technology	$	4,608	$	718	$	4,608	$	631

Amortization expense related to intangible assets totaled $87,000 for the three months ended March 31, 2018 and totaled $203,000 for the three ended March 31, 2017. The aggregate estimated amortization expense for intangible assets remaining as of March 31, 2018 is as follows (in thousands):

2018	$	259
2019		346
2020		346
2021		346
2022		346
over 5 years		2,247

Total	$	3,890