Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible assets and Goodwill consisted of the following at December 31:


	2018		2017

Product and license rights	$	36,573,941	$	21,879,981
Less: accumulated amortization	(8,405,188)		(6,564,007)
Total product and license rights	28,168,753		15,315,974
Patents	9,428,266		9,177,647
Less: accumulated amortization	(4,087,273)		(3,158,990)
Total patents	5,340,993		6,018,657
Trademarks	154,373		118,934
Less: accumulated amortization	(9,020)		(9,020)
Total trademarks	145,353		109,914
Total intangible assets	$	33,655,099	$	21,444,545

Goodwill	$	784,000	$	—

During 2013, the Company entered into an agreement with Pernix to distribute and promote the branded prescription product Omeclamox-Pak. The $4.0 million upfront payment the Company paid to Pernix during October 2013 and the $2.3 million payments made to GEL during 2018 (discussed more fully in Note 3) are included in product and license rights and are being amortized through June 2032, the remaining expected useful life of the acquired asset.

During 2014, the Company acquired the rights of the branded prescription product Vaprisol from Astellas. The intangible asset value is $3.0 million and is included in product and license rights. The asset is being amortized through February 2022, the remaining expected useful life of the acquired asset, which coincides with the life of the primary intellectual property asset.

In November 2016, the Company acquired the U.S. rights to Nordic Group B.V.’s injectable methotrexate product line. The agreement requires the Company to make future milestone payments over a fifteen-year period from the effective grant of the Regulatory Approval of the Methotrexate Pre-Filled Syringe Product in the U.S. The payments are being treated as consideration for the assets acquired and are being capitalized and will be amortized over the expected useful life of the acquired asset, once approval is granted. During 2017, the Company paid a deposit of $100,000 as well as recorded a liability provided through 180,000 unvested restricted shares of Cumberland stock, that will fully vest upon the FDA approval of the first Nordic product. As of December 31, 2018, the 180,000 shares of unvested restricted Cumberland stock are valued at $1.1 million.

As discussed in Note 3, during November 2018, the Company acquired Vibativ from Theravance. This resulted in amortizable intangible assets related to the product rights of $11.7 million and goodwill of $0.8 million. The intangible assets are being amortized through November 2028, the expected useful life of the acquired asset.

During 2018 and 2017, the Company recorded an additional $0.4 million and $0.4 million, respectively, in intangible assets for patents, trademarks and capitalized patent costs, including amounts incurred in the protection of the Company's intellectual property. These costs will be amortized over the remaining expected useful life of the associated patents.

Amortization expense related to product and license rights, trademarks and patents were as follows for the years ended December 31:


	2018		2017		2016

Amortization expense	$	2,769,466	$	2,436,222	$	2,194,039

The expected amortization expense for the Company's current balance of intangible assets are as follows:


Year ending December 31:
2019	$	3,658,612
2020	3,737,638
2021	3,737,638
2022	3,426,180
2023 and thereafter	19,095,031
	$	33,655,099