Quarterly report pursuant to Section 13 or 15(d)

Intangibles, net

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Intangibles, net
 9 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangibles, net
10. Intangibles, net
 
Journey Medical Corporation
 
In January 2016, JMC entered into a licensing agreement to distribute its prescription wound cream Luxamend® and paid an upfront fee of $50,000. Additionally, in January 2016, JMC entered into a licensing agreement to distribute its prescription emollient Ceracade TM for the treatment of various types of dermatitis and paid an upfront fee of $0.3 million. JMC commenced the sale of both of these products during the three months ended June 30, 2016 and accordingly commenced the amortization of these costs over their respective three year estimated useful life. For the three and nine months ended September 30, 2016, JMC recognized expense of approximately $29,000 and $50,000, respectively, which was recorded in costs of goods sold on the Condensed Consolidated Statement of Operations (see Note 20).
 
In March 2015, JMC entered into a license and supply agreement to acquire the rights to an oral antibiotic, for the treatment of severe acne. JMC made an upfront payment of $1.3 million. Further payments will be made based on a revenue sharing arrangement. JMC received FDA approval for the manufacturing of this product in July 2016 and expects to commence sales of this product in the second half of of 2016.