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INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS AND GOODWILL | NOTE 11. INTANGIBLE ASSETS AND GOODWILL The Company’s intangible assets at December 31, 2024 consisted of the following: SCHEDULE OF INTANGIBLE ASSETS
|  | Weighted-average |  |  |  |  |  |  |  |  |  |  | Net |
|  | useful life |  |  |  |  | Accumulated |  |  |  |  |  | Carrying |
|  | (in years) |  | Cost |  |  | amortization |  |  | Impairment |  |  | value |
Patents |  | 19 years |  | $ | 611,000 |  |  | $ | (216,000 | ) |  | $ | (253,000 | ) |  | $ | 142,000 |
Licenses |  | 20 years |  |  | 50,000 |  |  |  | (36,000 | ) |  |  | - |  |  |  | 14,000 |
Trademarks |  | Indefinite |  |  | 230,000 |  |  |  | - |  |  |  | - |  |  |  | 230,000 |
Acquired NDAs |  | 14 years |  |  | 207,398,000 |  |  |  | (22,962,000 | ) |  |  | - |  |  |  | 184,436,000 |
Customer relationships |  | 7 years |  |  | 596,000 |  |  |  | (542,000 | ) |  |  | - |  |  |  | 54,000 |
Trade name |  | 5 years |  |  | 75,000 |  |  |  | (7,000 | ) |  |  | - |  |  |  | 68,000 |
Non-competition clause |  | 4 years |  |  | 50,000 |  |  |  | (50,000 | ) |  |  | - |  |  |  | - |
State pharmacy licenses |  | 25 years |  |  | 8,000 |  |  |  | (3,000 | ) |  |  | - |  |  |  | 5,000 |
|  |  |  | $ | 209,018,000 |  |  | $ | (23,816,000 | ) |  | $ | (253,000 | ) |  | $ | 184,949,000 |
The Company’s intangible assets at December 31, 2023 consisted of the following:
|  | Weighted-average |  |  |  |  |  |  |  |  |  |  | Net |
|  | useful life |  |  |  |  | Accumulated |  |  |  |  |  | Carrying |
|  | (in years) |  | Cost |  |  | amortization |  |  | Impairment |  |  | value |
Patents |  | 19 years |  | $ | 984,000 |  |  | $ | (253,000 | ) |  | $ | (276,000 | ) |  | $ | 455,000 |
Licenses |  | 20 years |  |  | 100,000 |  |  |  | (30,000 | ) |  |  | (22,000 | ) |  |  | 48,000 |
Trademarks |  | Indefinite |  |  | 281,000 |  |  |  | - |  |  |  | (82,000 | ) |  |  | 199,000 |
Acquired NDAs |  | 14 years |  |  | 170,353,000 |  |  |  | (11,300,000 | ) |  |  | - |  |  |  | 159,053,000 |
Customer relationships |  | 7 years |  |  | 596,000 |  |  |  | (516,000 | ) |  |  | - |  |  |  | 80,000 |
Trade name |  | 5 years |  |  | 75,000 |  |  |  | (5,000 | ) |  |  | - |  |  |  | 70,000 |
Non-competition clause |  | 4 years |  |  | 50,000 |  |  |  | (50,000 | ) |  |  | - |  |  |  | - |
State pharmacy licenses |  | 25 years |  |  | 8,000 |  |  |  | (7,000 | ) |  |  | - |  |  |  | 1,000 |
|  |  |  | $ | 172,447,000 |  |  | $ | (12,161,000 | ) |  | $ | (380,000 | ) |  | $ | 159,906,000 |
During the years ended December 31, 2024 and 2023, the Company recorded a charge of $253,000 and $380,000, respectively, related to the impairment of certain licenses, trademarks, patents and patent applications. The Company determined that the sum of the expected undiscounted cash flows attributable to these intangible assets was less than their carrying value and that an impairment charge was required. Accordingly, the Company calculated the estimated fair value of the intangible assets based on the present value of the expected cash flows over their estimated lives. The impairment amount was calculated by deducting the present value of the expected cash flows from the carrying value. Significant estimates and assumptions used by the Company included sales and expense growth rates, and discounted projected cash flows. The estimates and assumptions used in the Company’s assessment represent a Level 3 measurement because they are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value. The assumptions used in the impairment analysis are inherently subject to uncertainty and, therefore, changes in these assumptions could have a significant impact on the concluded fair value. See Note 4 related to other intangible assets acquired during the year ended December 31, 2023. Amortization expense for intangible assets for the years ended December 31, 2024 and 2023 were as follows: SCHEDULE OF AMORTIZATION EXPENSES FOR INTANGIBLE ASSETS
|  | 2024 |  |  | 2023 |
|  | For the Years Ended December 31, |
|  | 2024 |  |  | 2023 |
Patents |  | $ | 56,000 |  |  | $ | 84,000 |
Licenses |  |  | 35,000 |  |  |  | 7,000 |
Acquired NDAs |  |  | 11,669,000 |  |  |  | 9,937,000 |
Customer relationships |  |  | 22,000 |  |  |  | 54,000 |
Trade name |  |  | 1,000 |  |  |  | - |
Amortization expense of intangible assets |  | $ | 11,783,000 |  |  | $ | 10,082,000 |
Estimated future amortization expense for the Company’s intangible assets at December 31, 2024 is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE
Years ending December 31, |  |  |
2025 |  | $ | 16,903,000 |
2026 |  |  | 16,903,000 |
2027 |  |  | 16,612,000 |
2028 |  |  | 16,205,000 |
2029 |  |  | 16,095,000 |
Thereafter |  |  | 102,001,000 |
Intangible assets |  | $ | 184,719,000 |
In connection with an asset purchase agreement between Novartis and the Company, the Company recognized a $37,000,000 milestone payment during 2024 following the release of the first commercially available batch of TRIESENCE. The milestone payment was recognized as an increase in the amount of intangible assets for Acquired NDAs. There were no changes in the carrying value of the Company’s goodwill during the years ended December 31, 2024 and 2023.

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