Annual report pursuant to Section 13 and 15(d)
|12 Months Ended|
Dec. 31, 2017
|Goodwill And Intangible Assets Disclosure [Abstract]|
Note E – Intangible Assets
In August 2017, the Company acquired a customer list from Ascend Genomics (“Ascend”) in exchange for 450,000 shares of restricted stock. See Note O to our consolidated financial statements included in this Annual Report for further disclosure. We recorded $4.1 million in intangible assets comprised of customer relationships which are being amortized over 15 years. As part of this transaction, Ascend signed a non-compete agreement which was also recorded as an intangible asset and is being amortized over 2 years.
As a result of the acquisition of Clarient in December 2015, see Note D, we recorded $84.0 million in intangible assets comprised of $81.0 million in customer relationships amortized over a fifteen year period and $3.0 million in trade name which we amortized over a two year period. Previously, we acquired Path Logic in July 2014 and recorded $1.93 million in customer relationships as an intangible asset. We were amortizing these customer relationships over a thirteen year period. In 2016, the Company determined that the Path Logic customer relationship asset was impaired and recorded an impairment loss in the amount of approximately $1.6 million. Path Logic was sold in August of 2017 and a loss of $1.1 million was recorded.
In January 2012, we entered into a Master License Agreement (the “License Agreement”) with Health Discovery Corporation, a Georgia corporation (“HDC”). We were granted an exclusive worldwide license to certain of HDC’s “Licensed Patents” and “Licensed Know-How” (as defined in the License Agreement). We have not made any milestone payments to HDC. In 2016, the Company determined that these assets were impaired and recorded an impairment loss in the amount of $1.9 million (see Note P).
Intangible assets as of December 31, 2017 and 2016 consisted of the following (in thousands):
The Company recorded amortization expense of intangible assets in the consolidated statements of operations as follows (in thousands):
The Company recorded amortization expense from customer relationships as a general and administrative expense. The amortization expense for the Support Vector Machine (SVM) technology, the Laboratory developed tests (LDT) technology and the Flow Cytometry and Cytogenetics technology intangibles has been recorded as research and development expense as we have not had products, services or cost savings directly attributable to these intangible assets that would require that it be recorded in cost of goods sold.
The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of December 31, 2017 is as follows (in thousands):
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://www.xbrl.org/2003/role/presentationRef