Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following sets forth the goodwill and intangible assets by major asset class:



		June 30, 2016							December 31, 2015
	Useful Life (Yrs)	Gross		Accumulated Amortization			Net Book Value		Gross			Accumulated Amortization			Net Book Value
Non-Amortizing:
Goodwill(a)		$	10,513,371	$	—		$	10,513,371	$	10,113,371		$	—		$	10,113,371
Amortizing:
Patents	8 – 17	5,802,528		(5,575,864		)	226,664		5,802,528			(5,516,122		)	286,406
Licenses	8 – 17	1,323,761		(1,147,487		)	176,274		1,323,761			(1,133,113		)	190,648
CELLECTRA^®(b)	5 – 11	8,106,270		(6,611,487		)	1,494,783		8,106,270			(6,397,947		)	1,708,323
GHRH(b)	11	335,314		(224,423		)	110,891		335,314			(208,581		)	126,733
Bioject (c)	2 – 15	5,100,000		(140,556		)	4,959,444		—		—	—			—
Other(d)	18	4,050,000		(2,568,750		)	1,481,250		4,050,000			(2,456,250		)	1,593,750
Total intangible assets		24,717,873		(16,268,567		)	8,449,306		19,617,873			(15,712,013		)	3,905,860
Total goodwill and intangible assets		$	35,231,244	$	(16,268,567	)	$	18,962,677	$	29,731,244		$	(15,712,013	)	$	14,019,231


(a)	Goodwill was recorded from the Inovio AS acquisition in January 2005, the acquisition of VGX in June 2009 and the acquisition of Bioject in April 2016 for $3.9 million, $6.2 million and $400,000, respectively.


(b)	CELLECTRA^® and GHRH are developed technologies which were recorded from the acquisition of VGX.


(c)	Bioject intangible assets represent the fair value of developed technology and intellectual property which were recorded from the acquisition of Bioject in April 2016.


(d)	Other intangible assets represent the fair value of acquired intellectual property from the Inovio AS acquisition.

Aggregate amortization expense on intangible assets for the three and six months ended June 30, 2016 was $347,000 and $557,000, respectively. Aggregate amortization expense on intangible assets for the three and six months ended June 30, 2015 was $219,000 and $443,000, respectively. Estimated aggregate amortization expense for each of the five succeeding fiscal years is $821,000 for the remainder of fiscal year 2016, $1.6 million for 2017, $1.3 million for 2018, $1.1 million for 2019, $547,000 for 2020 and $3.1 million for 2021 and the years thereafter.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details