Veru Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

Intangible Assets and Goodwill

3 Months Ended

Dec. 31, 2020

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

Note 8 – Intangible Assets and Goodwill

Intangible Assets

The gross carrying amounts and net book value of intangible assets are as follows at December 31, 2020:


	Gross Carrying		Accumulated		Net Book
	Amount		Amortization		Value
Intangible asset with finite life:
Covenants not-to-compete	$	500,000	$	297,619	$	202,381
Indefinite-lived intangible assets:
Acquired in-process research and development assets		3,900,000		—		3,900,000
Total intangible assets	$	4,400,000	$	297,619	$	4,102,381

The gross carrying amounts and net book value of intangible assets are as follows at September 30, 2020:


	Gross Carrying		Accumulated		Net Book
	Amount		Amortization		Value
Intangible assets with finite lives:
Developed technology - PREBOOST®	$	2,400,000	$	768,111	$	1,631,889
Covenants not-to-compete		500,000		279,762		220,238
Total intangible assets with finite lives		2,900,000		1,047,873		1,852,127
Acquired in-process research and development assets		3,900,000		—		3,900,000
Total intangible assets	$	6,800,000	$	1,047,873	$	5,752,127

As discussed in Note 3, the Company sold its intangible assets related to PREBOOST® as part of the sale of the PREBOOST® business on December 8, 2020. The remaining net book value of the PREBOOST® developed technology, acquired in the acquisition of APP, was $1.6 million on the date of the sale. For the three months ended December 31, 2020 and 2019, amortization expense was approximately $60,000 and $79,000, respectively.

Goodwill

The carrying amount of goodwill at December 31, 2020 and September 30, 2020 was $6.9 million. There was no change in the balance during the three months ended December 31, 2020 and 2019.