Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

. Intangible Assets

LENSAR

In April 2019, LENSAR acquired certain intellectual property from a third-party for $2.0 million in cash and contingent obligations to pay a $0.3 million milestone payment and royalties upon the completion of certain events, which were met prior to December 31, 2019.

In September 2019, LENSAR exclusively licensed certain intellectual property from a third-party for $3.5 million in cash for use in research and development activities. The amount was immediately expensed to Research and development expense.

The components of intangible assets as of June 30, 2020 and December 31, 2019 were as follows:


	June 30, 2020										December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Finite-lived intangible assets:
Acquired products rights⁽¹⁾	$	—	$	—	$	—	$	—	$	—	$	—
Customer relationships^{(1) (2) (3)}	4,045		(1,079)		2,966		4,045		(884)		3,161
Acquired technology^{(2) (4)}	11,500		(2,125)		9,375		11,500		(1,741)		9,759
Acquired trademarks⁽²⁾	570		(361)		209		570		(304)		266
	$	16,115	$	(3,565)	$	12,550	$	16,115	$	(2,929)	$	13,186

________________

⁽¹⁾ The Company acquired certain intangible assets as part of the Noden transaction. Those intangible assets are excluded from the table above and included in “Assets held for sale.” See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

⁽²⁾ The Company acquired certain intangible assets as part of its acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a weighted-average period of 15 years. The intangible assets for customer relationships are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

⁽³⁾ LENSAR acquired certain intangible assets for customer relationships resulting from its acquisition of Precision Eye Services, which are being amortized using a straight-line method over a period of 10 years.

⁽⁴⁾LENSAR acquired certain intangible assets from a third-party, which are being amortized on a straight-line basis over a period of 15 years.

For the three and six months ended June 30, 2020, amortization expense was $0.3 million and $0.6 million, respectively, and for the three and six months ended June 30, 2019, amortization expense was $0.3 million and $0.7 million, respectively.

Based on the intangible assets recorded at June 30, 2020, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows (in thousands):


Fiscal Year	Amount

2020 (Remaining six months)	$	613
2021	1,215
2022	1,124
2023	1,072
2024	1,060
Thereafter	7,466
Total remaining amortization expense	$	12,550