Intangible Assets

6 Months Ended

Jun. 30, 2020

Intangible Assets

Intangible Assets

7. Intangible Assets

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of June 30, 2020 were as follows (in thousands):

	Weighted Average	Gross Carrying		Accumulated
	Amortization Period	Amount		Amortization		Total
Acquired technology	10 years	$	12,112	$	(3,205)	$	8,907
Customer relationships, Backlog & Trademark	8 years		890		(223)		667
In process R&D	Indefinite		29,000		—		29,000
		$	42,002	$	(3,428)	$	38,574

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of December 31, 2019 were as follows (in thousands):

	Weighted Average	Gross Carrying		Accumulated
	Amortization Period	Amount		Amortization		Total
Acquired technology	9 years	$	8,244	$	(2,815)	$	5,429
Customer relationships & Trademark	9 years		320		(210)		110
		$	8,564	$	(3,025)	$	5,539

The change in the gross carrying amount of the acquired technology from December 31, 2019 to June 30, 2020 was due to changes in foreign currency translation, acquisitions of UHG and Giner ELX, and accrual for American Fuel Cell (AFC) milestone payment payments, as discussed below.

In the second quarter of 2020, the Company’s in-process research and development was related to the development of the dry build process associated with electrolyzer stacks, as part of acquisition of Giner ELX. The related intangible asset is not currently amortized, as research and development is ongoing. Upon completion of the dry build process, amortization will commence based upon the estimated useful life of the underlying asset. See Note 3 – Acquisitions, for more details.

Also, in the second quarter of 2020, the Company acquired technology as part of the acquisition of UHG.  The technology relates to the chemical process of manufacturing liquid hydrogen from chlor-alkali waste stream. See Note 3 – Acquisitions, for more details.

In the second quarter of 2019, 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. These royalties are added to the intangible asset balance, as incurred.

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, 2020, the Company paid $0.4 million and accrued $1.7 million in relation to the aforementioned milestones.

Amortization expense for acquired identifiable intangible assets was $0.2 million for the three months ended June 30, 2020 and $0.4 million for the six months ended June 30, 2020. Amortization expense for the acquired identifiable assets was $0.3 million for the three months ended June 30, 2019 and $0.3 million for the six months ended June 30, 2019.

Estimated amortization expense for subsequent years was as follows (in thousands):

Remainder of 2020	$	667
2021		1,334
2022		1,334
2023		1,334
2024 and thereafter		4,905
Total	$	9,574