Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v2.4.0.8
Intangible Assets
9 Months Ended
Dec. 31, 2013
Intangible Assets  
Intangible Assets

7.  Intangible Assets

 

The Company recorded amortization expense of $0.1 million and $0.4 million for the three and nine months ended December 31, 2013, respectively. Intangible assets consisted of the following as of December 31, 2013 (in thousands):

 

 

 

December 31, 2013

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,524

 

$

176

 

Technology

 

10 years

 

2,240

 

877

 

1,363

 

Parts and service customer relationships

 

5 years

 

1,080

 

846

 

234

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

351

 

139

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

6,284

 

$

1,912

 

 

The Company recorded amortization expense of $0.1 million and $0.4 million for the three and nine months ended December 31, 2012, respectively. Intangible assets consisted of the following as of March 31, 2013 (in thousands):

 

 

 

March 31, 2013

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,487

 

$

213

 

Technology

 

10 years

 

2,240

 

709

 

1,531

 

Parts and service customer relationships

 

5 years

 

1,080

 

684

 

396

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

317

 

173

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

5,883

 

$

2,313

 

 

Expected future amortization expense of intangible assets as of December 31, 2013 is as follows:

 

 

 

Amortization
Expense

 

 

 

(In thousands)

 

2014 (remainder of fiscal year)

 

$

180

 

2015

 

533

 

2016

 

273

 

2017

 

273

 

2018

 

242

 

Thereafter

 

411

 

Total expected future amortization

 

$

1,912

 

 

The manufacturing license provides the Company with the ability to manufacture recuperator cores previously purchased from Solar Turbines Incorporated (“Solar”). The Company is required to pay a per-unit royalty fee over a seventeen-year period for cores manufactured and sold by the Company using the technology. Royalties of approximately $15,000 and $19,500 were earned by Solar for the three months ended December 31, 2013 and 2012, respectively. Royalties of approximately $62,300 and $52,100 were earned by Solar for the nine months ended December 31, 2013 and 2012, respectively. Earned royalties of approximately $15,000 and $24,600 were unpaid as of December 31, 2013 and March 31, 2013, respectively, and are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.