Note 6 - Acquired Intangible Assets, Net

12 Months Ended

Dec. 31, 2013

Intangible Assets Disclosure [Text Block]

6. Acquired Intangible Assets, Net

In November 2007, in connection with the termination of the agreement with Galderma which originally granted to Galderma the worldwide rights to commercialization, distribution, and marketing of ELEVESS products, the Company reacquired the worldwide rights and control of the future development and marketing of ELEVESS. The intangible asset realized during this process was the ELEVESS trade name.

On December 30, 2009, in connection with the acquisition of Anika S.r.l., the Company purchased various intangible assets. The Company finalized the purchase price allocation relative to this acquisition during the fourth quarter of 2010.

We completed our annual impairment review as of November 30, 2013 and concluded that no impairment in the carrying value exists as of that date with respect to both goodwill and IPR&D. Through December 31, 2013 there have not been any events or changes in circumstances that indicate that the carrying value of goodwill or acquired intangible assets may not be recoverable. The excess of the fair value of the equity of the Anika S.r.l. reporting unit over its carrying value at November 30, 2013 increased from the prior year. The Company continues to monitor and evaluate the financial performance of the Anika S.r.l. business including the impact of general economic conditions, to assess the potential for the fair value of the reporting unit to decline below its book value. See Note 16, Restructuring, for additional disclosure.

Amortization expense was $2,093,746, $2,028,498, and $2,186,203 for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, amortization expense on intangible assets for the next five years is expected to be approximately $2.0 million annually.

Intangible assets, stated at cost, consist of the following:

			December 31, 2013								December 31, 2012
	Gross Value		Currency Translation Adjustment			Accumulated Amortization			Net Book Value		Net Book Value		Useful Life
Developed technology	$	16,700,000	$	(950,299	)	$	(3,996,698	)	$	11,753,003	$	12,370,042		15
In-process research & development		5,502,686		(216,559	)		-			5,286,127		4,980,574	Indefinite
Distributor relationships		4,700,000		(423,532	)		(3,412,813	)		863,655		1,733,453		5
Patents		1,000,000		(53,908	)		(226,518	)		719,574		749,166		16
Elevess trade name		1,000,000		-			(623,950	)		376,050		501,401		9
Total	$	28,902,686	$	(1,644,298	)	$	(8,259,979	)	$	18,998,409	$	20,334,636