Fortress Biotech, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangibles, net (Tables)

Intangibles, net (Tables)

9 Months Ended

Sep. 30, 2020

The table below provides a summary of the Journey intangible assets as of September 30, 2020 and December 31, 2019, respectively:


	Estimated Useful
($ in thousands)	Lives (Years)	September 30, 2020		December 31, 2019
		(Unaudited)
Total Intangible assets – asset purchases	3 to 7	$	14,661	$	9,934
Accumulated amortization			(3,622)		(2,557)
Net intangible assets		$	11,039	$	7,377

Schedule of JMC recognized expense related to its product licenses

The table below provides a summary for the nine months ended September 30, 2020, of Journey’s recognized expense related to its product licenses, which was recorded in costs of goods sold on the condensed consolidated statement of operations:


	Intangible
($ in thousands)	Assets, Net
Beginning balance at January 1, 2020	$	7,377
Additions:
Oral acne treatment license acquisition¹		4,727
Amortization expense		(1,065)
Ending balance at September 30, 2020	$	11,039

Note 1: As of September 30, 2020, this asset has not yet been placed in service, therefore no amortization expense was recognized on this asset for the quarter ended September 30, 2020. The Company expects the asset to be placed in service in the first half of 2021. Once the asset is placed in service the Company will amortize the asset over five years, which represents its expected useful life.

Schedule of future amortization of intangible assets

The future amortization of these intangible assets is as follows:


					Total
($ in thousands)	Ximino®		Exelderm®		Amortization
Three Months Ended December 31, 2020	$	254	$	100	$	354
Year Ended December 31, 2021		1,019		267		1,286
Year Ended December 31, 2022		1,019		—		1,019
Year Ended December 31, 2023		1,019		—		1,019
Year Ended December 31, 2024		1,019		—		1,019
Thereafter		1,615		—		1,615
Sub-total	$	5,945	$	367	$	6,312
Asset not yet placed in service						4,727
Total	$	5,945	$	367	$	11,039