Intangible Assets and Goodwill
Intangible assets and Goodwill consisted of the following at December 31, 2025 and 2024.
| | | | | | | | | | | | | | |
| | 2025 | | 2024 |
| | | | |
| Product and license rights | | $ | 43,250,341 | | | $ | 43,250,341 | |
| Less: accumulated amortization | | (29,846,042) | | | (26,300,793) | |
| Total product and license rights | | 13,404,299 | | | 16,949,548 | |
| Patents | | 10,880,571 | | | 10,808,476 | |
| Less: accumulated amortization | | (10,392,266) | | | (9,965,779) | |
| Total patents | | 488,305 | | | 842,697 | |
| Trademarks | | 450,431 | | | 433,397 | |
| Less: accumulated amortization | | (315,114) | | | (252,193) | |
| Total trademarks | | 135,317 | | | 181,204 | |
| Total intangible assets | | $ | 14,027,921 | | | $ | 17,973,449 | |
| | | | |
| Goodwill | | $ | 914,000 | | | $ | 914,000 | |
Product and license rights include assets associated with the Company’s acquired products, including those discussed in Note 3, Vibativ and Sancuso.
During 2025 and 2024, the Company recorded an additional $0.1 million for each year in intangible assets for patents, trademarks and capitalized patent costs, including amounts incurred in the protection of the Company's intellectual property.
Amortization expense related to product and license rights, trademarks and patents were as follows for the years ended December 31:
| | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | |
| Amortization and impairment expense | | $ | 4,034,657 | | | $ | 4,748,252 | | | |
The expected amortization expense for the Company's current balance of intangible assets are as follows:
| | | | | | | | |
| Year ending December 31: | | |
| 2026 | | $ | 3,808,905 | |
| 2027 | | 3,399,705 | |
| 2028 | | 2,561,458 | |
| 2029 | | 1,425,401 | |
| 2030 and thereafter | | 2,832,452 | |
| | $ | 14,027,921 | |
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.