Quarterly report [Sections 13 or 15(d)]

Intangible Assets

v3.26.1
Intangible Assets
6 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Intangible Assets

10. Intangible Assets

 

The following provides a breakdown of identifiable intangible assets as of June 30, 2026 and December 31, 2025:

 

    June 30,     December 31,  
    2026     2025  
License Agreement                
License agreement, gross   $ 13,605     $ -  
Accumulated amortization     (756 )     -  
Licensee agreement related identifiable intangible assets, net     12,849       -  
Product/Technology Related                
Identifiable intangible assets, gross     325       325  
Accumulated amortization     (314 )     (289 )
Product/technology related identifiable intangible assets, net     11       36  
Marketing Related                
Customer related intangible asset, gross     17       17  
Tradename related intangible asset, gross     713       713  
Accumulated amortization     (99 )     (85 )
Marketing related identifiable intangible assets, net     631       645  
Total identifiable intangible assets, net   $ 13,491     $ 681  

 

As discussed in Note 1, on April 17, 2026, the Company completed the acquisition of an exclusive license and certain related assets from Celularity pursuant to the License Agreement. The Company accounted for the transaction as an asset acquisition and recorded a finite-lived intangible asset with an initial carrying value of $13.3 million, consisting of $8.3 million in cash and a $5.0 million convertible promissory note. The acquired license is being amortized on a straight-line basis over its estimated useful life of three years.

 

In connection with the May 15, 2024 acquisition of Silly George, the Company identified intangible assets of $600 thousand representing trademark related intangibles with indefinite lives.

 

The intangible assets with definite lives are being amortized on a straight-line basis over their weighted average estimated useful life of 2.8 years and amortization expense amounted to $795 and $32 thousand for the six months ended June 30, 2026 and 2025, respectively.

 

As of June 30, 2026, the estimated annual amortization expense for each of the next five fiscal years is as follows ($ in thousands):

 

         
2026 (remainder of year)   $ 2,292  
2027     4,548  
2028     4,537  
2029     1,513  
2030     1  
Subtotal     12,891  
Indefinite lived intangible assets (subject to impairment analysis)     600  
Total   $ 13,491