Apollo Medical Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, Net

Intangible Assets, Net

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

4.	Intangible Assets, Net

At March 31, 2018, the Company’s intangible assets, net, consisted of the following:

	Useful		Gross				Net
	Life		March 31,		Accumulated		March 31,
	(Years)		2018		Amortization		2018
Indefinite Lived Assets:
Medicare license		N/A	$	1,994,000	$	-	$	1,994,000
Amortized Intangible Assets:
Network relationships		11-15		109,883,000		(39,179,025)		70,703,975
Management contracts		15		22,832,000		(5,646,843)		17,185,157
Member relationships		12		6,696,000		(357,292)		6,338,708
Patient management platform		5		2,060,000		(137,333)		1,922,667
Tradename/trademarks		20		1,011,000		(16,850)		994,150
			$	144,476,000	$	(45,337,343)	$	99,138,657

At December 31, 2017, the Company’s intangible assets, net, consisted of the following:

	Useful	Gross				Net
	Life	December 31,		Accumulated		December 31,
	(Years)	2017		Amortization		2017
Indefinite Lived Assets:
Medicare license	N/A	$	1,994,000	$	-	$	1,994,000
Amortized Intangible Assets:
Network relationships	11-15		109,883,000		(35,842,508)		74,040,492
Management contracts	15		22,832,000		(5,014,886)		17,817,114
Member relationships	12		6,696,000		(46,500)		6,649,500
Patient management platform	5		2,060,000		(34,336)		2,025,664
Tradename/trademarks	20		1,011,000		(4,212)		1,006,788
		$	144,476,000	$	(40,942,442)	$	103,533,558

Included in depreciation and amortization on the accompanying consolidated statements of income is amortization expense of $4,394,901 and $4,374,841, (excluding $106,000 amortization expense for exclusivity incentives) for the three months ended March 31, 2018 and 2017, respectively.

Future amortization expense is estimated to be as follows for the years ending December 31:

	Amount

2018 (remaining nine months)	$	12,262,000
2019		14,480,000
2020		12,671,000
2021		10,961,000
2022		9,448,000
Thereafter		37,323,000

	$	97,145,000

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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