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Note S - Goodwill & Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

S.	Goodwill & Intangible Assets

The Company's goodwill balance was $4.7 million as of December 31, 2024, and 2023.

As of December 31, 2024, and 2023, non-amortizable intangible assets include IPR&D of $2.0 million.

As of December 31, 2024, and 2023, the Company had a definite-lived intangible asset, net related to the acquisition of OLPRUVA as a result of the Merger of $61.3 million and $67.2 million, respectively. This is amortized on a straight-line basis over the OLPRUVA patent life of 13 years and is reviewed periodically for impairment. Amortization expense is recorded as intangible asset amortization in the consolidated statements of operations and was $6.2 million and $0.8 million for the years ended December 31, 2024, and 2023.

The Company's review of the estimated useful lives of its intangible assets indicated that based on recent facts and circumstances, including detailed analysis on sales experience and prospective product strategy, the actual life of the definite-lived intangible asset related to OLPRUVA was longer than the estimated useful life previously established at the acquisition of the asset. As a result, effective September 30, 2024, the Company changed its estimate of the useful life of this intangible asset to better reflect the estimated periods during which this asset will remain in service. The estimated useful life was previously 11 years and was increased to 13 years. The change in estimate was applied prospectively and decreased intangible asset amortization expense by $0.2 million for the year ended December 31, 2024. Consequently, there was an increase to intangible assets, net of $0.2 million at year end. The impact of this change in estimate to net income and basic and diluted earnings per share was de minimis.

In connection with the XOMA License Agreement, the Company owed XOMA a regulatory milestone payment of $6.0 million upon approval of MIPLYFFA, which was paid in October 2024.

This definite-lived intangible asset is amortized on a straight-line basis over the MIPLYFFA patent life of approximately five years and is reviewed periodically for impairment. Amortization expense is recorded as intangible asset amortization in the consolidated statements of operations and was $0.3 million for the year ended December 31, 2024.

The definite-lived Intangible assets that are subject to amortization have been reviewed for impairment whenever events or changes in circumstances have indicated that their carrying amounts may not be recoverable. The Company’s historical sales experience related to OLPRUVA resulted in management preparing an estimate of future cash flows used to assess the recoverability of such asset. Future cash flows specific to OLPRUVA, which most significantly includes an estimate of forecasted revenues, are based on reasonable and supportable assumptions regarding the cash flows expected to result from the use of the asset and its eventual disposition. As a result of the Company’s analysis, the asset was fully recoverable and no impairments were recorded by the Company as of and for the year’s ended December 31, 2024, and 2023.

For intangible assets subject to amortization, estimated amortization expense for the five fiscal years subsequent to December 31, 2024, is expected to be as follows:

2025	$	6,461
2026	$	6,461
2027	$	6,461
2028	$	6,461
2029	$	5,830