XML 22 R12.htm IDEA: XBRL DOCUMENT

Note 6 - Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Text Block]

6.	Intangible Assets

Intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following:

			Six Months Ended June 30, 2020
	Gross Value		Less: Accumulated Currency Translation Adjustment			Less: Current Period Impairment Charge			Less: Accumulated Amortization			Net Book Value		Weighted Average Useful Life
Developed technology	$	93,953	$	(2,904	)	$	(1,025	)	$	(11,460	)	$	78,564		15
In-process research & development		5,006		(1,242	)		-			-			3,764	Indefinite
Customer relationships		9,000		-			-			(377	)		8,623		10
Distributor relationships		4,700		(415	)		-			(4,285	)		-		5
Patents		1,000		(177	)		-			(555	)		268		16
Tradenames		5,200		-			-			(441	)		4,759		5
Total	$	118,859	$	(4,738	)	$	(1,025	)	$	(17,118	)	$	95,978		13

			Year ended December 31, 2019
	Gross Value		Less: Accumulated Currency Translation Adjustment			Less: Current Period Impairment Charge			Less: Accumulated Amortization			Net Book Value		Weighted Average Useful Life
Developed technology	$	17,100	$	(2,934	)	$	(389	)	$	(9,657	)	$	4,120		15
In-process research & development		4,406		(1,234	)		-			-			3,172	Indefinite
Distributor relationships		4,700		(415	)		-			(4,285	)		-		5
Patents		1,000		(176	)		-			(531	)		293		16
Elevess Tradename		1,000		-			-			(1,000	)		-		9
Total	$	28,206	$	(4,759	)	$	(389	)	$	(15,473	)	$	7,585		11

The aggregate amortization expense related to intangible assets was $2.2 million and $0.2 million for the three-month periods ended June 30, 2020 and 2019, respectively, and $3.5 million and $0.5 million for the six-month periods ended June 30, 2020 and 2019, respectively.

In the first quarter of 2020, the Company acquired Parcus Medical and Arthrosurface as discussed in Note 3, which resulted in an increase of $92.9 million of gross value in intangible assets. During the six-month period ended June 30, 2020, the Company determined that it will not pursue CE Mark renewals for certain of its products, which resulted in an impairment of $1.0 million of which $0.3 million was recognized in the first quarter of 2020. The impairments are included in the selling, general & administrative expenses on its condensed consolidated statements of operations.

The Company assessed the recoverability of intangible and long-lived assets besides goodwill and concluded no impairments existed as of March 31, 2020. If the pandemic's economic impact is more severe, or if the economic recovery takes longer to materialize or does not materialize as strongly as anticipated, this could result in intangible or long-lived asset impairment charges. For the quarter ended June 30, 2020, there were no impairments related to the pandemic’s economic impact. However, the Company did identify certain intangible asset impairments as a result of product rationalization and the related decision to not pursue certain related CE Mark renewals.