NOTE 4. INTANGIBLES

The table below provides a summary of the Company’s intangible assets at December 31, 2024 and 2023, respectively:

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The Company’s amortization expense for the years ended December 31, 2024 and 2023 was approximately $3.4 million and $3.8 million, respectively. Amortization expense is recorded as a component of cost of goods sold in the Company’s consolidated statements of operations.

The Company’s finite-lived intangible assets consist of acquired intangible assets. On November 1, 2024, the FDA approved the Company’s drug candidate for the treatment of inflammatory lesions of rosacea in adults, Emrosi^TM. The approval triggered a $15.0 million milestone payment, which the Company capitalized as an acquired intangible asset. During the year ended December 31, 2023, the Company experienced lower net product revenues and gross profit levels for its Ximino products. Based on these results, the Company revised the financial outlook and plans for its Ximino products. The Company assessed the revised forecast for Ximino and determined that this constituted a triggering event, and the results of the analysis indicated the carrying amount was not expected to be recovered. The Company recorded an intangible asset impairment charge of $3.1 million during the year ended December 31, 2023. This non-cash charge was recorded to loss on impairment of intangible assets in the consolidated statements of operations.

Future amortization of the Company’s intangible assets is as follows:

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