Intangible Assets

9 Months Ended

Sep. 30, 2016

E.	Intangible Assets

Intangible assets are recorded at cost less accumulated amortization and included in engineering, selling and administrative expenses in the accompanying condensed consolidated statements of operations. Amortization is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range up to 10 years. The intangible assets consist of intellectual property and goodwill. As a result of the PTF Acquisition, the gross carrying amount of intangible assets increased from $538,000 at December 31, 2015 to $752,000 at September 30, 2016. The net carrying value of the amortizable intangible assets was $607,000 and $435,000 as of September 30, 2016 and December 31, 2015, respectively. Goodwill, which is not amortizable, was $40,000 as of September 30, 2016 and December 31, 2015.

The estimated aggregate amortization expense for the remaining portion of 2016 and each of the four succeeding years and thereafter is as follows (in thousands):

2016	$	19
2017		75
2018		75
2019		75
2020		75
Thereafter		288
Total	$	607