Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

3 Months Ended

Jun. 30, 2016

7. Intangible Assets

The Company recorded amortization expense of $0.1 million during the first quarter of each of Fiscal 2017 and Fiscal 2016. Intangible assets consisted of the following (in thousands):


	June 30, 2016
	Weighted
	Average	Intangible
	Amortization	Assets,		Accumulated		Intangible
	Period	Gross		Amortization		Assets, Net
Manufacturing license	17 years	$	3,700	$	3,647	$	53
Technology	10 years		2,240		1,437		803
Backlog	Various		490		473		17
Trade name & Parts, service and TA100 customer relationships	1.2 to 5 years		1,766		1,766		—
Total		$	8,196	$	7,323	$	873


	March 31, 2016
	Weighted
	Average	Intangible
	Amortization	Assets,		Accumulated		Intangible
	Period	Gross		Amortization		Assets, Net
Manufacturing license	17 years	$	3,700	$	3,635	$	65
Technology	10 years		2,240		1,381		859
Backlog	Various		490		473		17
Trade name & Parts, service and TA100 customer relationships	1.2 to 5 years		1,766		1,766		—
Total		$	8,196	$	7,255	$	941

Expected future amortization expense of intangible assets as of June 30, 2016 is as follows (in thousands):


	Amortization
Year Ending March 31,	Expense
2017 (remainder of fiscal year)	$	220
2018		242
2019		224
2020		187
Thereafter		—
Total expected future amortization	$	873

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 $8,300 and $12,200 were earned by Solar for the first quarter of Fiscal 2017 and 2016, respectively. Earned royalties of approximately $31,100 and $35,000 were unpaid as of June 30, 2016 and March 31, 2016, respectively, and are included in accounts payable and accrued expenses in the accompanying balance sheets.