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Contingent Earn-Out Receivable
12 Months Ended
Dec. 31, 2017
Contingent Earn-out Receivable  
Contingent Earn-Out Receivable
CONTINGENT EARN-OUT RECEIVABLE
 
On April 22, 2014, we entered into an Agreement (the “BSA Agreement”) with Boston Semi Equipment LLC (“BSE”) and Boston Semi Automation LLC (“BSA”), a wholly owned subsidiary of BSE, pursuant to which we transferred our assets and certain liabilities related to our business of designing, manufacturing, marketing and servicing equipment used in the handling of integrated circuits (“test handler product line”) to BSA.
 
The BSA Agreement provides that BSA will pay to ATRM a royalty on all revenue related to the test handler product line through December 31, 2018. Royalties earned are subject to certain qualifications and adjustments. The royalty percentage was 12% as of the quarter ended December 31, 2015 and decreases 0.75% each quarter thereafter. Royalty payments are due 60 days after the end of each calendar quarter. We received payments totaling approximately $0.5 million and $0.3 million at December 31, 2017 and 2016, respectively. The contingent earn-out receivable totaled approximately $0.4 million and $0.6 million at December 31, 2017 and 2016, respectively.