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Intangible Assets
6 Months Ended
Jun. 30, 2019
Intangible Assets  
Intangible Assets

 

6. Intangible Assets

 

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of June 30, 2019 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Gross Carrying

 

Accumulated

 

 

 

 

 

 

Amortization Period

 

Amount

 

Amortization

 

Total

 

Acquired technology

 

10 years 

 

$

7,757

 

$

(2,483)

 

$

5,274

 

Customer relationships

 

10 years 

 

 

260

 

 

(136)

 

 

124

 

Trademark

 

5 years 

 

 

60

 

 

(60)

 

 

 —

 

 

 

 

 

$

8,077

 

$

(2,679)

 

$

5,398

 

 

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of December 31, 2018 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Gross Carrying

 

Accumulated

 

 

 

 

 

 

Amortization Period

 

Amount

 

Amortization

 

Total

 

Acquired technology

 

9 years 

 

$

5,926

 

$

(2,176)

 

$

3,750

 

Customer relationships

 

10 years 

 

 

260

 

 

(123)

 

 

137

 

Trademark

 

5 years 

 

 

60

 

 

(57)

 

 

 3

 

 

 

 

 

$

6,246

 

$

(2,356)

 

$

3,890

 

 

The change in the gross carrying amount of the acquired technology from December 31, 2018 to June 30, 2019 is due to the acquisition of intellectual property from EnergyOr in May 2019, a milestone payment to American Fuel Cell LLC (AFC), as well as changes attributed to foreign currency translation. The Company acquired intellectual property from EnergyOr for $1.5 million. In addition, the Company agreed to pay the sellers a royalty based on future sales of relevant applications, not to exceed $3.0 million, by May 22, 2025.

 

As part of the agreement to acquire the intellectual property from AFC, the Company shall pay AFC milestone payments not to exceed $2.9 million in total, if certain milestones associated with the production of components related to the acquired technology are met before April 2021. As of June 30, 2019 the Company paid $0.4 million to AFC in relation to the aforementioned milestones.

 

Amortization expense for acquired identifiable intangible assets was $0.2 million for both the three months ended June 30, 2018 and 2017, respectively. Amortization expense for the acquired identifiable assets was $0.3 million for both the six months ended June 30, 2019 and 2018. Estimated amortization expense for subsequent years is as follows (in thousands):

 

 

 

 

 

Remainder of 2019

    

$

370

2020

 

 

741

2021

 

 

741

2022

 

 

741

2023

 

 

741

2024 and thereafter

 

 

2,064

Total

 

$

5,398