Note 6 - Intangible Assets

Intangible assets acquired in the APP Acquisition included IPR&D, developed technology consisting of PREBOOST®  medicated wipes for prevention of premature ejaculation, and covenants not-to-compete.  

The gross carrying amounts and net book value of intangible assets are as follows at March 31, 2018:





The gross carrying amounts and net book value of intangible assets are as follows at September 30, 2017:







Amortization is recorded over the projected related revenue stream for the PREBOOST® developed technology over the next 10 years and on a straight-line basis over seven years for the covenants not-to-compete. The amortization expense is recorded in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. The IPR&D assets will not be amortized until the underlying development projects are completed. If and when development is complete, which generally occurs when regulatory approval to market the product is obtained, the associated IPR&D assets would be accounted for as finite-lived intangible assets and amortized over the estimated period of economic benefit.  If a development project is abandoned, the associated IPR&D assets would be charged to expense.



Amortization expense was approximately $69,000 and $40,000, for the three months ended March 31, 2018 and 2017, respectively. Amortization expense was approximately $138,000 and $67,000, for the six months ended March 31, 2018 and 2017, respectively. Based on finite-lived intangible assets recorded as of March 31, 2018, the estimated future amortization expense is as follows: