Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

9 Months Ended

Dec. 31, 2017

7. Intangible Assets

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


	December 31, 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		1,773		467
Trade name & parts, service and TA100 customer relationships	1.2 to 5 years		1,766		1,766		—
Total		$	7,706	$	7,239	$	467


	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 and $0.2 million for each of the three and nine months ended December 31, 2017 and 2016, respectively.

Expected future amortization expense of intangible assets as of December 31, 2017 is as follows (in thousands):


	Amortization
Year Ending March 31,	Expense
2018 (remainder of fiscal year)		56
2019		224
2020		187
Thereafter		—
Total expected future amortization	$	467

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 $9,200 and $7,400 were earned by Solar for the three months ended December 31, 2017 and 2016, respectively. Royalties of approximately $22,900 and $22,100 were earned by Solar for the nine months ended December 31, 2017 and 2016, respectively. Earned royalties of approximately $9,200 and $10,000 were unpaid as of December 31, 2017 and March 31, 2017, respectively, and are included in accounts payable and accrued expenses in the accompanying balance sheets.