Anika Therapeutics, Inc. Goodwill & Intangibles Disclosure

7. Acquired Intangible Assets, Net

 

Intangible assets consist of the following:

 

						Year Ended December 31, 2025
		Gross Cost				Less: Disposals				Less: Accumulated Currency Translation Adjustment				Less: Accumulated Amortization				Net Book Value				Weighted Average Useful Life (in Years)
Developed technology		$	12,080			$	(600	)		$	(1,608	)		$	(9,872	)		$	-				14
IPR&D			2,656				-				(1,006	)			-				1,650			Indefinite
Patents			1,000				-				(189	)			(811	)			-				16
Total		$	15,736			$	(600	)		$	(2,803	)		$	(10,683	)		$	1,650			Indefinite

 

 

						Year Ended December 31, 2024
		Gross Cost				Plus: Additions				Less: Accumulated Currency Translation Adjustment				Less: Accumulated Amortization				Net Book Value				Weighted Average Useful Life (in Years)
Developed technology		$	11,480			$	600			$	(1,608	)		$	(9,667	)		$	805				14
IPR&D			2,656				-				(1,006	)			-				1,650			Indefinite
Distributor relationships			4,700				-				(415	)			(4,285	)			-				5
Patents			1,000				-				(189	)			(776	)			35				16
Total		$	19,836			$	600			$	(3,218	)		$	(14,728	)		$	2,490				11

 

Total amortization expense with respect to the definite lived acquired intangible assets was $0.4 million, $0.7 million and $0.6 million for each of the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the Company’s definite lived acquired intangible assets are fully amortized.

 

The Company performed its annual assessment of the IPR&D intangible asset as of November 30, 2025. The Company estimated the fair value of the IPR&D intangible assets using the income approach which is based on the Multi-Period Excess Earnings Method (“MPEEM”). MPEEM measures economic benefit indirectly by calculating the income attributable to an asset after appropriate returns are paid to complementary assets used in conjunction with the subject asset to produce the earnings associated with the subject asset, commonly referred to as contributory asset charges. This approach incorporates significant estimates and assumptions related to the forecasted results including revenues, expenses, expected economic life of the asset, contributory asset charges and discount rates to estimate future cash flows. While assumptions utilized are subject to a high degree of judgment and complexity, the Company made its best estimate of future cash flows under a high degree of economic uncertainty that existed as of November 30, 2025. In developing its assumptions, the Company also considered observed trends of its industry participants. No impairment existed as the estimated fair value of the remaining IPR&D intangible asset was greater than its carrying value.