Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.8.0.1
Intangible Assets
6 Months Ended
Sep. 30, 2017
Intangible Assets  
Intangible Assets

7.  Intangible Assets

 

Intangible assets consisted of the following as of September 30, 2017 and March 31, 2017 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

Intangible

 

 

 

 

 

 

 

 

 

Amortization

 

Assets,

 

Accumulated

 

Intangible

 

 

 

Period

 

Gross

 

Amortization

 

Assets, Net

 

Manufacturing license

    

17 years

    

$

3,700

    

$

3,700

    

$

 —

 

Technology

 

10 years

 

 

2,240

 

 

1,717

 

 

523

 

Trade name & parts, service and TA100 customer relationships

 

1.2 to 5 years

 

 

1,766

 

 

1,766

 

 

 —

 

Total

 

 

 

$

7,706

 

$

7,183

 

$

523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2017

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

Intangible

 

 

 

 

 

 

 

 

 

Amortization

 

Assets,

 

Accumulated

 

Intangible

 

 

 

Period

 

Gross

 

Amortization

 

Assets, Net

 

Manufacturing license

    

17 years

    

$

3,700

    

$

3,684

    

$

16

 

Technology

 

10 years

 

 

2,240

 

 

1,605

 

 

635

 

Trade name & parts, service and TA100 customer relationships

 

1.2 to 5 years

 

 

1,766

 

 

1,766

 

 

 —

 

Total

 

 

 

$

7,706

 

$

7,055

 

$

651

 

 

Amortization expense for the intangible assets was $0.1 million for each of the three and six months ended September 30, 2017 and 2016, respectively.

 

Expected future amortization expense of intangible assets as of September 30, 2017 is as follows (in thousands):

 

 

 

 

 

 

 

 

Amortization

 

Year Ending March 31,

    

Expense

 

2018 (remainder of fiscal year)

 

 

112

 

2019

 

 

224

 

2020

 

 

187

 

Thereafter

 

 

 —

 

Total expected future amortization

 

$

523

 

 

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 $7,200 and $6,400 were earned by Solar for the three months ended September 30, 2017 and 2016, respectively. Royalties of approximately $13,700 and $14,700 were earned by Solar for the six months ended September 30, 2017 and 2016, respectively. Earned royalties of approximately $7,200 and $10,000 were unpaid as of September 30, 2017 and March 31, 2017, respectively, and are included in accounts payable and accrued expenses in the accompanying balance sheets.