Annual report pursuant to Section 13 and 15(d)

Intangibles

v3.6.0.2
Intangibles
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangibles
10. Intangibles
 
Journey Medical Corporation
 
In January 2016, JMC entered into a licensing agreement with a third party to distribute its prescription wound cream LuxamendTM and paid an upfront fee of $50,000. Additionally, in January 2016, JMC entered into a licensing agreement with a third party to distribute its prescription emollient CeracadeTM 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 year ended December 31, 2016, JMC recognized expense of approximately $0.2 million, which was recorded in costs of goods sold on the Consolidated Statement of Operations (see Note 22).
 
In March 2015, JMC entered into a license and supply agreement to acquire the rights to distribute TargadoxTM a dermatological product for the treatment of 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 commenced sales of this product in October 2016.