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Note 6 - Goodwill, In-process Research and Development and Intellectual Property

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Text Block]

6.	In-Process Research and Development and Intellectual Property

In-Process Research and Development

During the third quarter of 2019, the Company concluded that the fair value determined by the market value approach was lower than the carrying value. As a result, the Company recognized a $7.9 million impairment charge to its IPR&D asset. The Company performed its annual impairment assessment at December 31, 2019 and no additional impairment was required. On March 13, 2020, upon receipt of regulatory clearance to commercialize the products associated with the IPR&D assets in the United States, the assets were deemed definite-lived, transferred to developed technology and are amortized based on their estimated useful lives.

The carrying value of the Company’s IPR&D assets and the change in the balance for the nine months ended September 30, 2020 is as follows:

	In-Process Research and Development
	(in thousands)
Balance at December 31, 2019	$	2,470
Foreign currency translation impact		(45	)
Transfer to developed technology		(2,425	)
Balance at September 30, 2020	$	-

Intellectual Property

The components of gross intellectual property, accumulated amortization, and net intellectual property as of September 30, 2020 and December 31, 2019 are as follows:

	September 30, 2020
	(in thousands)
	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Impact		Net Carrying Amount
Developed technology	$	68,838	$	(46,820	)	$	1,831	$	23,849
Technology and patents purchased		400		(150	)		40		290
Total intellectual property	$	69,238	$	(46,970	)	$	1,871	$	24,139

	December 31, 2019
	(in thousands)
	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Impact			Net Carrying Amount
Developed technology	$	66,413	$	(36,918	)	$	(1,208	)	$	28,287
Technology and patents purchased		400		(112	)		21			309
Total intellectual property	$	66,813	$	(37,030	)	$	(1,187	)	$	28,596

The weighted average remaining useful life of the developed technology and technology and patents purchased was 2.4 years and 6.6 years, respectively, as of September 30, 2020.