| 9. | Intangible assets |
| Cost | Licenses | Patents | Trademarks | Customer list |
Approved ANDAs |
Acquired in process research and development |
Acquired intangible assets |
Total | ||||||||||||||||||||||||
| At December 31, 2015 | $ | - | $ | 15,708,549 | $ | 4,428,338 | $ | 781,472 | $ | - | $ | - | $ | - | $ | 20,918,359 | ||||||||||||||||
| Acquisitions under business combinations (note 4), as previously stated | - | - | - | - | - | - | 101,712,420 | 101,712,420 | ||||||||||||||||||||||||
| Effect of movements in exchange rates | - | (468,759 | ) | (132,146 | ) | (23,320 | ) | - | - | - | (624,225 | ) | ||||||||||||||||||||
| Reclassified for finalization of purchase price allocation (note 4) | - | 9,772,740 | - | 6,713,991 | 1,505,664 | 83,720,025 | (101,712,420 | ) | - | |||||||||||||||||||||||
| At December 31, 2016 | $ | - | $ | 25,012,530 | $ | 4,296,192 | $ | 7,472,143 | $ | 1,505,664 | $ | 83,720,025 | $ | - | $ | 122,006,554 | ||||||||||||||||
| Additions | 2,383,550 | - | - | - | - | - | - | 2,383,550 | ||||||||||||||||||||||||
| Impairment | (635,721 | ) | - | - | - | - | - | - | (635,721 | ) | ||||||||||||||||||||||
| Transfers to assets held for resale | - | (9,122,874 | ) | - | (6,267,525 | ) | (1,405,541 | ) | (78,152,819 | ) | - | (94,948,759 | ) | |||||||||||||||||||
| Effect of movements in exchange rates | 8,471 | (1,650,944 | ) | (282,211 | ) | (496,269 | ) | (100,123 | ) | (5,567,206 | ) | - | (8,088,282 | ) | ||||||||||||||||||
| At December 31, 2017 | $ | 1,756,300 | $ | 14,238,712 | $ | 4,013,981 | $ | 708,349 | $ | - | $ | - | $ | - | $ | 20,717,342 | ||||||||||||||||
| Accumulated amortization and impairment losses |
Licenses | Patents | Trademarks | Customer list |
Approved ANDAs |
Acquired in process research and development |
Acquired intangible assets |
Total | ||||||||||||||||||||||||
| At December 31, 2015 | $ | - | $ | 14,781,836 | $ | 4,015,852 | $ | 708,679 | $ | - | $ | - | $ | - | $ | 19,506,367 | ||||||||||||||||
| Amortization | - | 886,217 | 394,461 | 69,612 | - | - | 841,734 | 2,192,024 | ||||||||||||||||||||||||
| Effect of movements in exchange rates | - | (428,263 | ) | (114,121 | ) | (20,139 | ) | - | - | 5,869 | (556,654 | ) | ||||||||||||||||||||
| Reclassified for finalization of purchase price allocation (note 4) | - | 81,440 | - | 55,949 | 12,548 | 697,666 | (847,603 | ) | - | |||||||||||||||||||||||
| At December 31, 2016 | $ | - | $ | 15,321,230 | $ | 4,296,192 | $ | 814,101 | $ | 12,548 | $ | 697,666 | $ | - | $ | 21,141,737 | ||||||||||||||||
| Amortization | - | 637,406 | - | 437,904 | 98,203 | 5,460,444 | - | 6,633,957 | ||||||||||||||||||||||||
| Transfers to assets held for resale | - | (684,216 | ) | - | (470,064 | ) | (105,416 | ) | (5,861,461 | ) | - | (7,121,157 | ) | |||||||||||||||||||
| Effect of movements in exchange rates | - | (1,035,708 | ) | (282,211 | ) | (73,592 | ) | (5,335 | ) | (296,649 | ) | - | (1,693,495 | ) | ||||||||||||||||||
| At December 31, 2017 | $ | - | $ | 14,238,712 | $ | 4,013,981 | $ | 708,349 | $ | - | $ | - | $ | - | $ | 18,961,042 | ||||||||||||||||
| Carrying amounts | Licenses | Patents | Trademarks | Customer list |
Approved ANDAs |
Acquired in process research and development |
Acquired intangible assets |
Total | ||||||||||||||||||||||||
| At December 31, 2016 | $ | - | $ | 9,691,300 | $ | - | $ | 6,658,042 | $ | 1,493,116 | $ | 83,022,359 | $ | - | $ | 100,864,817 | ||||||||||||||||
| At December 31, 2017 | $ | 1,756,300 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 1,756,300 | ||||||||||||||||
During the year ended December 31, 2017, the Company acquired licenses totaling $2,383,550. The Company has recorded $1,756,300 within accounts payable and accrued liabilities relating to the current portion of license fees payable and $501,800 recorded as a non-current liability relating to the license fees payable as at December 31, 2017.
The Company has considered indicators of impairment as at December 31, 2017 and 2016. The Company recorded a write-down of intangible assets during the year ended December 31, 2017 totaling $635,721 pertaining to a license acquired during the year, which is currently under litigation as described in note 15(d). The Company did not record a write-down of intangible assets during the year ended December 31, 2016. During the year ended December 31, 2015, the Company recorded a reversal of the impairment loss relating to the AGGRASTAT® intangible assets and from patent applications no longer being pursued or patents being abandoned. As at December 31, 2017, the AGGRASTAT® intangible assets were fully amortized.
For the year ended December 31, 2017, there was no amortization of intangible assets relating to AGGRASTAT® or other intangible assets recorded. For the years ended December 31, 2016 and December 31, 2015, amortization of intangible assets relating to AGGRASTAT® totaling $1,347,022 and $655,603, respectively is recognized in cost of goods sold and $3,268 and $3,787, respectively, is recognized in research and development expenses.
For the years ended December 31, 2017 and 2016, amortization of the acquired intangible assets totaling $6,633,955 and $841,754, respectively, was recognized within loss from discontinued operations.
The Company did not record amortization on its licenses totaling $1,756,300 as they were not available for use at December 31, 2017.
As described in note 10, intangible assets were pledged as security against long-term debt, however the long-term debt was extinguished during the year ended December 31, 2017 and no further security obligations exist in relation to the Company’s intangible assets.