Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Note 6: Intangible Assets and Goodwill

Intangible assets at June 30, 2018 and December 31, 2017 are summarized in the tables below:

June 30, 2018	Gross  Carrying  Value		Accumulated  Amortization			Net Carrying  Amount
Definite-lived Intangible assets, estimated lives in years:
Patents, Taper DPI Intellectual Property, 10 years	$	9,708,700	$	(4,368,915	)	$	5,339,785
Transition Services Agreement, 1 year		194,200		(194,200	)		—
FDA 503B Registration & Compliance - USC, 10 years		3,963,000		(879,566	)		3,083,434
Non-compete Agreement - USC, 3 years		1,639,000		(1,212,556	)		426,444
Customer Relationships - USC, 10 years		5,572,000		(1,236,675	)		4,335,325
Website Design - USC, 3 years		16,163		(7,183	)		8,980
Total Definite-lived Assets		21,093,063		(7,899,095	)		13,193,968
Trade Name and Brand - USC, Indefinite		1,245,000		—			1,245,000
Symjepi™ Domain Name		9,674		—			9,674
Balance, June 30, 2018	$	22,347,737	$	(7,899,095	)	$	14,448,642

December 31, 2017	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Definite-lived Intangible assets, estimated lives in years:
Patents, Taper DPI Intellectual Property, 10 years	$	9,708,700	$	(3,883,480	)	$	5,825,220
Transition Services Agreement, 1 year		194,200		(194,200	)		—
FDA 503B Registration & Compliance - USC, 10 years		3,963,000		(681,416	)		3,281,584
Non-compete Agreement, 3 years		1,639,000		(939,389	)		699,611
Customer Relationships, 10 years		5,572,000		(958,074	)		4,613,926
Website Design, 3 years		16,163		(4,491	)		11,672
Total Definite-lived Assets		21,093,063		(6,661,050	)		14,432,013
Trade Name and Brand - USC, Indefinite		1,245,000		—			1,245,000
Symjepi™ Domain Name		9,674		—			9,674
Balance, December 31, 2017	$	22,347,737	$	(6,661,050	)	$	15,686,687

Amortization expense for the three months ended June 30, 2018 and 2017 was approximately $619,000 and $619,000, respectively; and for the six months ended June 30, 2018 and 2017, amortization expense was approximately $1,238,000 and $1,237,000, respectively. 

Estimated amortization expense of definite-lived intangible assets at June 30, 2018 for each of the five succeeding years and thereafter is as follows: 

Year ending December 31,
Remainder of 2018	$	1,238,046
2019		2,083,034
2020		1,925,267
2021		1,924,370
2022		1,924,370
Thereafter		4,098,881
Total	$	13,193,968

   Goodwill recorded at the acquisition of USC was approximately $2,225,000. In addition, for the year ended December 31, 2016, the Company recorded a deferred tax liability of approximately $5,416,000 through acquisition goodwill. The carrying value of the Company's goodwill as of June 30, 2018 and December 31, 2017 was approximately $7,641,000.