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Note 8 - Intangible Assets and Goodwill
9 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
8.   Intangible Assets and Goodwill

In connection with the acquisition of Anika Therapeutics S.r.l. (“Anika S.r.l.”), the Company acquired various intangible assets and goodwill. The Company evaluated the various intangible assets and related cash flows from these intangible assets, as well as the useful lives and amortization methods related to these intangible assets. The in-process research and development (“IPR&D”) intangible assets initially have indefinite lives and are reviewed periodically to assess the project status, valuation, and disposition, including write-off(s) for abandoned projects. Until such determination is made, they are not amortized. 


The Company reviews its long-lived assets for impairment at least annually. Additionally, the Company will initiate a review for impairment if events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of the assets are no longer appropriate. Each impairment test will be based on a comparison of the undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value.


Intangible assets as of September 30, 2014 and December 31, 2013 consist of the following:


        September 30, 2014   December 31, 2013
    Gross Value  

Currency

Translation

Adjustment

 

Accumulated

Amortization

 

Net Book

Value

 

Net Book

Value

  Useful Life
Developed technology   $ 16,700,000     $ (1,828,214 )   $ (4,779,123 )   $ 10,092,663     $ 11,753,003       15  
In-process research & development     5,502,686       (638,426 )     -       4,864,260       5,286,127       Indefinite  
Distributor relationships     4,700,000       (440,953 )     (4,084,944 )     174,103       863,655       5  
Patents     1,000,000       (107,910 )     (271,208 )     620,882       719,574       16  
Elevess trade name     1,000,000       -       (717,964 )     282,036       376,050       9  
Total   $ 28,902,686     $ (3,015,503 )   $ (9,853,239 )   $ 16,033,944     $ 18,998,409          

The aggregate amortization expense related to intangible assets was $518,699 and $521,387 for the three-month periods ended September 30, 2014 and 2013, respectively. The aggregate amortization expense related to intangible assets was $1,593,260 and $1,555,796 for the nine-month periods ended September 30, 2014 and 2013, respectively.


Changes in the carrying value of goodwill for the three and nine-month periods ended September 30, 2014 were as follows:


Goodwill  

Three

Months Ended

September 30,

2014

 

Nine

Months Ended

September 30,

2014

                 
Balance, beginning   $ 9,360,884     $ 9,443,894  
Effect of foreign currency adjustments     (658,589 )     (741,599 )
Balance, ending   $ 8,702,295     $ 8,702,295