Goodwill and Intangible Assets
The Company performed the annual impairment review as of October 1, 2025 and concluded that it is not more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount.
The following tables summarizes the changes in the carrying amount of goodwill:
| | | | | |
| Amount |
| Balance as of December 31, 2023 | $ | 133,857 | |
| Goodwill resulting from Ironshore Acquisition | 28,476 | |
| Balance as of December 31, 2024 | $ | 162,333 | |
| Measurement period adjustments from Ironshore Acquisition | (16,408) | |
| Balance as of December 31, 2025 | $ | 145,925 | |
The following table sets forth the cost, accumulated amortization, and carrying amount of intangible assets as of December 31, 2025 and 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2025 | | As of December 31, 2024 |
| Cost | | Accumulated Amortization | | Carrying Amount | | Cost | | Accumulated Amortization | | Carrying Amount |
| Jornay PM | $ | 635,000 | | | $ | (111,072) | | | $ | 523,928 | | | $ | 635,000 | | | $ | (27,242) | | | $ | 607,758 | |
| Belbuca | 360,000 | | | (284,607) | | | 75,393 | | | 360,000 | | | (209,214) | | | 150,786 | |
Nucynta Products (1) | 521,170 | | | (493,478) | | | 27,692 | | | 521,170 | | | (438,094) | | | 83,076 | |
| Symproic | 70,000 | | | (27,503) | | | 42,497 | | | 70,000 | | | (20,218) | | | 49,782 | |
| Total intangibles | $ | 1,586,170 | | | $ | (916,660) | | | $ | 669,510 | | | $ | 1,586,170 | | | $ | (694,768) | | | $ | 891,402 | |
The following table presents amortization expense recognized in cost of product revenues for the years ended December 31, 2025, 2024, and 2023:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Jornay PM | $ | 83,830 | | | $ | 27,242 | | | $ | — | |
| Belbuca | 75,393 | | | 75,393 | | | 75,393 | |
Nucynta Products (1) | 55,384 | | | 55,384 | | | 63,082 | |
| Symproic | 7,285 | | | 7,285 | | | 7,285 | |
| Total amortization expense | $ | 221,892 | | | $ | 165,304 | | | $ | 145,760 | |
(1)During the year ended December 31, 2023, the United States Food and Drug Administration (“FDA”) granted New Patient Population exclusivity in pediatrics for Nucynta IR which extends the period of U.S. exclusivity for Nucynta IR to July 3, 2026, resulting in an extension of the estimated useful life of the underlying intangible asset from 8.0 years to 8.5 years.
As of December 31, 2025, the remaining amortization expense expected to be recognized is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Years ended December 31, | Jornay PM | | Belbuca | | Nucynta Products | | Symproic | | Total |
| 2026 | $ | 83,829 | | | $ | 75,393 | | | $ | 27,692 | | | $ | 7,285 | | | $ | 194,199 | |
| 2027 | 83,829 | | | — | | | — | | | 7,285 | | | 91,114 | |
| 2028 | 83,829 | | | — | | | — | | | 7,285 | | | 91,114 | |
| 2029 | 83,829 | | | — | | | — | | | 7,285 | | | 91,114 | |
| 2030 | 83,829 | | | — | | | — | | | 7,285 | | | 91,114 | |
| Thereafter | 104,783 | | | — | | | — | | | 6,072 | | | 110,855 | |
| Remaining amortization expense | $ | 523,928 | | | $ | 75,393 | | | $ | 27,692 | | | $ | 42,497 | | | $ | 669,510 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.