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Acquired Intangible Assets, Net
 12 Months Ended
Dec. 31, 2012
Acquired Intangible Assets, Net
6. Acquired Intangible Assets, Net
 
In November 2007, in connection with the termination of the agreement with Galderma which originally granted to Galderma the worldwide rights to commercialization, distribution, and marketing of ELEVESS products, the Company reacquired the worldwide rights and control of the future development and marketing of ELEVESS. The intangible asset realized during this process was the ELEVESS trade name.
 
On December 30, 2009, in connection with the acquisition of Anika S.r.l., the Company purchased various intangible assets. The Company finalized the purchase price allocation relative to this acquisition during the fourth quarter of 2010.
 
Excluding our fourth quarter of 2012 restructuring and impairment charges, we completed our annual impairment review as of November 30, 2012 and concluded that no impairment in the carrying value exists as of that date with respect to both goodwill and IPR&D. Through December 31, 2012 there have not been any events or changes in circumstances that indicate that the carrying value of goodwill or acquired intangible assets may not be recoverable. The fair value of the equity of the Anika S.r.l. reporting unit over its carrying value at November 30, 2012 declined from the prior year. The Company continues to monitor and evaluate the financial performance of the Anika S.r.l. business including the impact of general economic conditions, to assess the potential for the fair value of the reporting unit to decline below its book value. See Note 16, Restructuring, for additional disclosure.
 
Amortization expense was $2,028,498, $2,186,203, and $2,011,639 for the years ended December 31, 2012, 2011 and 2010, respectively. As of December 31, 2012, amortization expense on intangible assets for the next five years is expected to be approximately $2.0 million annually.
 
Intangible assets, stated at cost, consist of the following:
 
         
December 31, 2012
    
December 31, 2011
  
   
Gross Value
    
Currency
Translation Adjustment
    
Abandonments
and Other Adjustments
    
Accumulated Amortization
    
Net Book
Value
    
Net Book
Value
    
Useful Life
  
Developed technology
   $ 16,700,000     $ (1,369,787 )   $ -     $ (2,960,171 )   $ 12,370,042     $ 13,228,351       15  
In-process research & development
     6,698,000       (522,112 )     (1,195,314 )     -       4,980,574       5,955,066    
Indefinite
  
Distributor relationships
     4,700,000       (424,639 )     -       (2,541,908 )     1,733,453       2,547,842       5  
Patents
     1,000,000       (81,824 )     -       (169,010 )     749,166       790,555       16  
Elevess trade name
     1,000,000       -       -       (498,599 )     501,401       626,749       9  
    Total
   $ 30,098,000     $ (2,398,362 )   $ (1,195,314 )   $ (6,169,688 )   $ 20,334,636     $ 23,148,563