Fortress Biotech, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangibles, net (Tables)

Intangibles, net (Tables)

12 Months Ended

Dec. 31, 2021

The table below provides a summary of intangible assets as of December 31, 2021 and 2020, respectively:


	Estimated Useful
($ in thousands)	Lives (Years)	December 31, 2021		December 31, 2020
Total intangible assets – asset purchases	3 to 7	$	19,003	$	18,606
Accumulated amortization			(6,451)		(3,977)
Net intangible assets		$	12,552	$	14,629

Schedule of JMC recognized expense related to its product licenses

The table below provides a summary for the years ended December 31, 2021 and 2020, of recognized expense related to product licenses, which was recorded in costs of goods sold on the Consolidated Statement of Operations (see Note 19):


	Intangible
($ in thousands)	Assets, Net
Beginning balance at December 31, 2019	$	7,377
Additions:
Accutane¹		4,727
Anti-itch product license acquisition²		3,945
Amortization expense		(1,420)
Ending balance at December 31, 2020	$	14,629
Additions:
Exelderm milestone		397
Amortization expense		(2,474)
Ending balance at December 31, 2021	$	12,552

Note 1: Includes an upfront payment of $1.0 million and a milestone payment of $0.5 million in 2020 and three payments totaling $3.5 million due at various points between 2021 through 2023. Such payments were discounted by $0.3 million as a result of the long-term nature of such payments.

Note 2: Includes an upfront payment of $0.2 million and three payments totaling $2.8 million in 2021 and $1.0 million in 2022. Such payments were discounted by $0.1 million as a result of the long-term nature of such payments. As of December 31, 2020, this asset has not yet been placed in service, therefore no amortization expense was recognized on this asset for the year ended December 31, 2020. The Company expects to launch this asset in the first half of 2022. Once the asset is placed in service Journey will amortize the asset over three 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®		Accutane®		Amortization
Year ended December 31, 2022	$	1,019	$	946	$	1,965
Year ended December 31, 2023		1,019		945		1,964
Year ended December 31, 2024		1,019		946		1,965
Year ended December 31, 2025		1,019		945		1,964
Thereafter		595		157		752
Sub-total	$	4,671	$	3,939	$	8,610
Assets not yet placed in service:
Anti-itch product license acquisition		—		—		3,942
Total	$	4,671	$	3,939	$	12,552