Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

3 Months Ended

Jun. 30, 2013

7. Intangible Assets

The Company recorded amortization expense of $0.1 million during the first quarter of Fiscal 2014. Intangible assets consisted of the following (in thousands):

	June 30, 2013
	Weighted Average Amortization Period	Intangible Assets, Gross		Accumulated Amortization		Intangible Assets, Net
Manufacturing license	17 years	$	3,700	$	3,499	$	201
Technology	10 years	2,240		765		1,475
Parts and service customer relationships	5 years	1,080		738		342
TA100 customer relationships	2 years	617		617		—
Backlog	Various	490		317		173
Trade name	1.2 years	69		69		—
Total		$	8,196	$	6,005	$	2,191

The Company recorded amortization expense of $0.1 million during the first quarter of Fiscal 2013. Intangible assets consisted of the following (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 June 30, 2013 is as follows (in thousands):

	Amortization Expense
2014 (remainder of fiscal year)	$	459
2015	533
2016	273
2017	273
2018	242
Thereafter	411
Total expected future amortization	$	2,191

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 $25,200 and $16,000 were earned by Solar for the first quarter of Fiscal 2014 and 2013, respectively. Earned royalties of approximately $25,200 and $24,600 were unpaid as of June 30, 2013 and March 31, 2013, respectively, and are included in accounts payable and accrued expenses in the accompanying balance sheets.