Quarterly report pursuant to Section 13 or 15(d)

PREPAID EXPENSES AND OTHER CURRENT ASSETS & INTANGIBLE ASSETS

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PREPAID EXPENSES AND OTHER CURRENT ASSETS & INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER CURRENT ASSETS & INTANGIBLE ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS & INTANGIBLE ASSETS

Prepaid Expenses and Other Current Assets

The components of prepaid expenses and other current assets are as presented below:
 
September 30,
2018
 
December 31,
2017
 
(in thousands)
Prepaid income tax (see Note 10)
$
2,331

 
$

Other prepaid expenses and other current assets
701

 
765

 
$
3,032

 
$
765



Intangible Assets

The Company and Finjan Blue entered into a Patent Assignment and Support Agreement (the “Patent Assignment Agreement”) with IBM effective as of August 24, 2017 (see "Note 3 - Commitments and Contingencies", "Finjan Blue"). In accordance with ASC 350-30-35-2 through 35-4, Intangibles-Goodwill and Other, the Company determined that the useful life of the patents acquired under the Patent Assignment and Support Agreement should be amortized over the four-year term of the agreement.

On May 15, 2018, Finjan Blue, entered into a second Patent Assignment and Support Agreement (the “May 2018 Patent Assignment Agreement”) with IBM. Pursuant to the May 2018 Patent Assignment Agreement, Finjan Blue acquired 56 select issued and pending IBM patents in the security sector. The terms of the May 2018 Patent Assignment Agreement are confidential. In accordance with ASC 350-30-35-2 through 35-4, Intangibles-Goodwill and Other, the Company determined that the useful life of the patents acquired under the May 2018 Patent Assignment Agreement should be amortized over five years as the covenants between the parties are effective for that period.
The components of these intangible assets are as follows:
 
September 30,
2018
 
December 31,
2017
 
(in thousands)
Patents
$
26,070

 
$
26,552

Less accumulated amortization
(20,075
)
 
(18,804
)
 
$
5,995

 
$
7,748



Amortization expense for the three and nine months ended September 30, 2018 was $0.5 million and $1.3 million, respectively, and $0.2 million for the three and nine months ended September 30, 2017.