Licenses (Licenses)

12 Months Ended

Dec. 31, 2013

Licenses

8. Licenses

	December 31, 2013
			Accumulated		Net book
	Cost		amortization		value
Inactivated hepatitis A	3,490		3,490		—
Combined inactivated hepatitis A&B	502		452		50
H5N1 licenses (note 22)	1,519		797		722
Total	$	5,511	$	4,739	$	772

	December 31, 2012
			Accumulated		Net book
	Cost		amortization		value
Inactivated hepatitis A	3,391		3,391		—
Combined inactivated hepatitis A&B	488		390		98
H5N1 licenses (note 22)	1,476		424		1,052
Total	$	5,355	$	4,205	$	1,150

(a) On August 15, 2011, the Company entered into a non-exclusive main license agreement together with three sublicense agreements with Medimmune, LLC (“Medimmune”) to use patented reverse genetics technology pertaining to virus strain production for vaccines, including the H5N1 influenza virus strain. The Company amortized the patent fee on a straight-line method basis over the estimated useful life of 20 years. On August 15, 2012, the Company entered into amendment agreements with Medimmune which amended the term of the license agreements. As for the main license agreement, the estimated useful life of the patent was revised to end on December 29, 2015. The other three sublicense agreements have been revised to end on April 5, 2020, July 14, 2020, and May 23, 2021, respectively. According, the estimated useful life of the patent was revised to end on December 29, 2015 (note 22) which is the termination date of the main license agreement.

(b) Amortization expense for the licenses was $268, $228 and $435 for 2011, 2012 and 2013, respectively.

(c) Estimated amortization expense for the existing licenses over their remaining useful lives as of December 31, 2013 is as follows:

Within 1 year	$	411
Between 1 and 2 years	361
Between 2 and 3 years	—
Total	$	772

The above amortization expense forecast is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of licenses and other events.