Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

v3.21.1
INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2020
INTANGIBLE ASSETS  
6. INTANGIBLE ASSETS

6. INTANGIBLE ASSETS

 

Intangible assets at December 31, 2020 and 2019 consist of the following:

 

 

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Cost

 

 

Amortization

 

 

Net

 

 

Cost

 

 

Amortization

 

 

Net

 

Trademark and other intangible rights related to Nabi-HB

 

$ 4,100,046

 

 

$ 2,098,833

 

 

$ 2,001,213

 

 

$ 4,100,046

 

 

$ 1,513,112

 

 

$ 2,586,934

 

Rights to intermediates

 

 

907,421

 

 

 

464,513

 

 

 

442,908

 

 

 

907,421

 

 

 

334,881

 

 

 

572,540

 

Customer contract

 

 

1,076,557

 

 

 

1,076,557

 

 

 

-

 

 

 

1,076,557

 

 

 

1,076,557

 

 

 

-

 

 

 

$ 6,084,024

 

 

$ 3,639,903

 

 

$ 2,444,121

 

 

$ 6,084,024

 

 

$ 2,924,550

 

 

$ 3,159,474

 

   

Under the previous contract manufacturing agreement between ADMA and BPC, intermediate by-products derived from the manufacture of ASCENIV were property of Biotest. As a result of the Biotest Transaction, ADMA obtained the right to these intermediate products, which are being amortized over a period of seven years. The intangible rights to Nabi-HB are also being amortized over a period of seven years.

 

The customer contract pertains to a contract manufacturing agreement with a third-party customer that the Company assumed upon the consummation of the Biotest Transaction. On December 22, 2017, the Company and the customer entered into an amendment to this contract which reduced the number of batches the Company was committed to supply to the customer, and the Company had fulfilled this obligation to the customer in its entirety as of December 31, 2019, the date of expiration of the contract, as amended.

 

Amortization expense related to the Company’s intangible assets for the years ended December 31, 2020 and 2019 was $0.7 million and $0.8 million, respectively. Estimated aggregate future aggregate amortization expense is expected to be as follows:

 

2021

 

$ 715,352

 

2022

 

 

715,352

 

2023

 

 

715,352

 

2024

 

 

298,065