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

Quarterly report pursuant to Section 13 or 15(d)

National Holdings Corporation Acquisition ?? Intangible Assets

National Holdings Corporation Acquisition Intangible Assets

6 Months Ended

Jun. 30, 2017

National Holdings Corporation Acquisition - Intangible Assets

3. National Holdings Corporation Acquisition Intangible Assets

On September 9, 2016, the Company, purchased approximately 56.6% of National's common stock, par value $0.02 per share at the purchase price of $3.25 per share in cash.

In connection with the purchase, the Company recognized $18.6 million of goodwill and does not expect goodwill to be deductible for tax purposes.

Intangible assets consist of trademark and customer lists acquired in the offer under the purchase method of accounting and are recorded at fair value net of accumulated amortization since the purchase date. Amortization is calculated using the straight-line and accelerated methods over the following estimated useful lives:

		Useful life
Trademark		10 years
Customer lists		10 years

The carrying amount related to acquired intangible assets as of June 30, 2017 are as follows ($ in thousands):

Intangible assets at December 31, 2016	$	15,991
Amortization expense		(819)
Intangible assets at June 30, 2017	$	15,172

The future amortization of these intangible assets is as follows ($ in thousands):

	Total
Six Months Ended December 31, 2017	$	831
Year Ended December 31, 2018		1,649
Year Ended December 31, 2019		1,649
Year Ended December 31, 2020		1,654
Year Ended December 31, 2021		1,649
Thereafter		7,740
Total	$	15,172

The Company reviews its finite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of a finite-lived intangible asset may not be recoverable. Recoverability of a finite-lived intangible asset is measured by a comparison of its carrying amount to the undiscounted future cash flows expected to be generated by the asset. If the asset is considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no indicators of impairment during the six months ended June 30, 2017.