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Intangible Assets
 6 Months Ended
Dec. 31, 2012
Intangible Assets
3. Intangible Assets

The reconciliation of intangible assets for the six months ended December 31, 2012 and for the year ended June 30, 2012 was as follows:

 

     Six Months Ended
December 31, 2012		     Year Ended
June 30,  2012		  
     (In thousands)  

Patented technologies

     

Gross carrying amount at beginning of period

    $ 39,556      $ 55,422   

Asset impairment write-down

      —          (14,830 ) 

Foreign currency translation adjustments

      812        (1,036 ) 
  

 

 

    

 

 

  

Gross carrying amount at end of period

      40,368        39,556   
  

 

 

    

 

 

  

Accumulated amortization at beginning of period

      (35,330 )      (33,858 ) 

Amortization expense

      (386 )      (2,037 ) 

Foreign currency translation adjustments

      (769 )      565   
  

 

 

    

 

 

  

Accumulated amortization at end of period

      (36,485 )      (35,330 ) 
  

 

 

    

 

 

  

Net book value at end of period

    $ 3,883      $ 4,226   
  

 

 

    

 

 

  

The Company amortizes its intangible assets with finite lives on a straight-line basis over their respective estimated useful lives. Amortization of intangible assets totaled $194,000 and $819,000 for the three months ended December 31, 2012 and 2011, respectively, as well as $386,000 and $1.7 million for the six months ended December 31, 2012 and 2011, respectively. The carrying value of intangible assets at December 31, 2012 of $3.9 million will be amortized on a straight-line basis over the remaining estimated useful life of 5.0 years, or approximately $780,000 per year. Of the total net book value at December 31, 2012, approximately $2.7 million was attributable to the Durasert technology and $1.2 million was attributable to the BioSilicon technology.

In November 2011, the FDA issued the 2011 CRL and did not grant marketing approval for ILUVIEN for DME, and, as a result, the Company did not receive a $25.0 million milestone payment from Alimera and Alimera was unable to commence marketing ILUVIEN for DME in the U.S. Following the public announcement of the 2011 CRL, there was a significant decline in the Company’s market capitalization from $82.0 million immediately prior to the announcement to $23.1 million at December 31, 2011. The combination of the 2011 CRL and the decline in the Company’s market capitalization were determined to be impairment indicators of the Company’s finite-lived intangible assets, which resulted in a $14.8 million impairment write-down for the quarter ended December 31, 2011.