| INTANGIBLES |
NOTE 6. INTANGIBLES
The Company’s finite-lived intangible assets consist of acquired intangible assets. The gross carrying amount and accumulated amortization of intangible assets as of March 31, 2023 and December 31, 2022 are summarized as follows:
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March 31, 2023 |
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Estimated |
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Useful |
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Gross |
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Lives |
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Carrying |
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Accumulated |
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Intangible |
($’s in thousands) |
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(Years) |
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Value |
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Amortization |
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Assets, Net |
Amortizable intangible assets: |
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Ceracade® |
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3 |
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$ |
300 |
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$ |
(300) |
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$ |
— |
Luxamend® |
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3 |
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50 |
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(50) |
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— |
Targadox® |
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3 |
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1,250 |
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(1,250) |
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— |
Ximino® |
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7 |
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7,134 |
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(3,737) |
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3,397 |
Exelderm® |
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3 |
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1,600 |
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(1,600) |
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— |
Accutane® |
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5 |
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4,727 |
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(1,970) |
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2,757 |
Amzeeq® |
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9 |
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15,162 |
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(1,995) |
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13,167 |
Zilxi® |
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6 |
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3,760 |
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(895) |
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2,865 |
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33,983 |
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(11,797) |
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22,186 |
Non-amortizable intangible assets: |
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Anti-itch product (1) |
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3 |
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3,942 |
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— |
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3,942 |
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Total intangible assets |
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$ |
37,925 |
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$ |
(11,797) |
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$ |
26,128 |
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December 31, 2022 |
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Estimated |
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Useful |
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Gross |
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Lives |
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Carrying |
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Accumulated |
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Intangible |
($’s in thousands) |
|
(Years) |
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Value |
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Amortization |
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Assets, Net |
Amortizable intangible assets: |
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Ceracade® |
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3 |
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$ |
300 |
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$ |
(300) |
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$ |
— |
Luxamend® |
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3 |
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50 |
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(50) |
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— |
Targadox® |
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3 |
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1,250 |
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(1,250) |
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— |
Ximino® |
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7 |
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7,134 |
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(3,482) |
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3,652 |
Exelderm® |
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3 |
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1,600 |
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(1,600) |
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— |
Accutane® |
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5 |
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4,727 |
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(1,733) |
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2,994 |
Amzeeq® |
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9 |
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15,162 |
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(1,597) |
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13,565 |
Zilxi® |
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6 |
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3,760 |
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(716) |
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3,044 |
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33,983 |
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(10,728) |
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|
23,255 |
Non-amortizable intangible assets: |
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Anti-itch product (1) |
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3 |
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3,942 |
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— |
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3,942 |
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Total intangible assets |
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$ |
37,925 |
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$ |
(10,728) |
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$ |
27,197 |
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(1) |
As of March 31, 2023, this asset has not yet been placed in service, therefore no amortization expense was recognized on this asset for the period ended March 31, 2023.
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The Company’s amortization expense for the three-month periods ended March 31, 2023 and 2022 was $1.1 million and $1.0 million, respectively. Amortization expense is recorded as a component of cost of goods sold in the Company’s unaudited condensed consolidated statements of operations.
Future amortization of the Company’s intangible assets is as follows:
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$’s in thousands |
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Total Amortization |
Remainder of 2023 |
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$ |
3,207 |
December 31, 2024 |
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|
4,277 |
December 31, 2025 |
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4,277 |
December 31, 2026 |
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|
3,064 |
December 31, 2027 |
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|
1,775 |
Thereafter |
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5,586 |
Subtotal |
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22,186 |
Asset not yet placed in service |
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3,942 |
Total |
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$ |
26,128 |
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