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Intangible Assets
 12 Months Ended
Dec. 31, 2011
Intangible Assets [Abstract]  
Intangible Assets
(4) Intangible Assets

Intangible assets consisted of the following at December 31:

 

      September 30,       September 30,  
    2011     2010  
     

Product rights

   $ 6,518,798     $ —    

Less accumulated amortization

     (54,259 )      —    
   

 

 

    

 

 

  

Total product rights

     6,464,539       —    
   

 

 

    

 

 

  
     

Trademarks

     9,020       9,020  

Less accumulated amortization

     (8,667 )      (8,123 ) 
   

 

 

    

 

 

  

Total trademarks

     353       897  
   

 

 

    

 

 

  
     

License

     —         10,303,595  

Less accumulated amortization

     —         (3,262,805 ) 
   

 

 

    

 

 

  

Total license

     —         7,040,790  
   

 

 

    

 

 

  
     

Patents

     608,561       409,536  

Less accumulated amortization

     (50,389 )      (24,000 ) 
   

 

 

    

 

 

  

Total patents

     558,172       385,536  
   

 

 

    

 

 

  
    $ 7,023,064     $ 7,427,223  
   

 

 

    

 

 

  

In April 2006, the Company acquired the exclusive U.S. commercialization rights for Kristalose from Inalco Biochemicals, Inc. and Inalco S.p.A. (collectively Inalco) for $10,303,595. In November 2011, the Company completed the acquisition of the remaining rights associated with the Kristalose brand, including the FDA registration and trademark. In connection with the acquisition, the unamortized balance of the license rights was reclassified to product rights. The agreement requires the Company to make future quarterly payments over a seven-year period equal to a percentage of Kristalose net sales. The payments are being treated as consideration for the assets acquired, and are being capitalized and amortized over the remaining expected useful life of the acquired asset, generally 15 years.

Amortization expense related to product rights, trademarks and license rights totaled approximately $0.7 million in 2011, 2010 and 2009, and is expected to be approximately $0.5 million in each of the years 2012 through 2016.