TherapeuticsMD, Inc. Goodwill & Intangibles Disclosure
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6. |
Licensed rights and other intangible assets |
The following provides information about our license rights and other intangible assets, net (in thousands):
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As of December 31, 2021 |
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As of December 31, 2020 |
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Gross |
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Gross |
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Carrying |
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Accumulated |
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Carrying |
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Accumulated |
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Amount |
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Amortization |
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Net |
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Amount |
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Amortization |
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Net |
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License rights and other intangible assets subject to amortization: |
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License rights |
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$ |
40,000 |
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$ |
6,826 |
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$ |
33,174 |
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$ |
40,000 |
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$ |
3,803 |
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$ |
36,197 |
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Hormone therapy drug patents |
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5,834 |
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1,042 |
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4,792 |
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4,045 |
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749 |
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3,296 |
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Hormone therapy drug patents applied and pending approval |
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2,020 |
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— |
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2,020 |
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1,629 |
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— |
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1,629 |
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License rights and other intangible assets subject to amortization |
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47,854 |
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7,868 |
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39,986 |
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45,674 |
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4,552 |
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41,122 |
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Intangible assets not subject to amortization: |
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Trademarks/trade name rights |
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332 |
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— |
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332 |
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323 |
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— |
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323 |
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License rights and other intangible assets, net |
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$ |
48,186 |
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$ |
7,868 |
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$ |
40,318 |
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$ |
45,997 |
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$ |
4,552 |
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$ |
41,445 |
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We recorded amortization expense related to the exclusive license rights agreement with Population Council of $3.0 million for 2021 and 2020, and $0.8 million for 2019. We recorded amortization expense related to patents of $0.3 million for 2021 and 2020, and $0.2 million for 2019.
Our license rights and other intangible assets subject to amortization is expected to be amortized as follows (in thousands):
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Year ending December 31, |
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2022 |
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$ |
3,451 |
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2023 |
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3,445 |
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2024 |
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3,447 |
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2025 |
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3,445 |
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2026 |
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3,445 |
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Thereafter |
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20,733 |
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Total |
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$ |
37,966 |
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We use a combination of qualitative and quantitative factors to assess licensed rights and intangible assets for impairment. As a result of performing these assessments, we determined that no impairment existed as of December 31, 2021, therefore, no write downs were recorded to our licensed rights and other intangible assets for 2021. For 2020 and 2019, we wrote off $1.1 million and $0.1 million, respectively, in costs related to patents and trademarks, which were included in general and administrative expenses in the accompanying consolidated statements of operations.
Historical Timeline
| Fiscal Year | Filed | |
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| 2021 | Mar 23, 2022 | Showing above |
| 2020 | Mar 4, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
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.