Supplemental Financial Information

9 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventories

The following table presents details of our inventories, net of reserves:


	December 31, 2023		March 31, 2023
	(In thousands)
Raw materials	$	7,766	$	7,840
Work in process	23		315
Finished goods	3,667		2,686
	$	11,456	$	10,841

Property and Equipment

The following table presents details of our property and equipment, net:


	December 31, 2023		March 31, 2023
	(In thousands)
Equipment	$	6,729	$	6,359
Leasehold improvements	827		824
Accumulated depreciation	(6,266)		(5,886)
	$	1,290	$	1,297

Depreciation expense was approximately $0.1 million and $0.2 million for the three-month periods ending December 31, 2023 and December 31, 2022, respectively. Depreciation expense was approximately $0.4 million and $0.5 million for the nine-month periods ending December 31, 2023 and December 31, 2022, respectively. Depreciation expense is included in cost of revenues and operating expenses in our unaudited condensed statements of operations.

Intangible Assets

The following table presents details of our net intangible assets:


	December 31, 2023						March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(In thousands)
Technology	$	4,986	$	(4,138)	$	848	$	4,986	$	(3,444)	$	1,542
Customer contracts / relationships	9,550		(5,431)		4,119		9,550		(4,371)		5,179
Trade names and non-compete agreements	782		(770)		12		782		(770)		12
Capitalized software development costs	9,670		(4,628)		5,042		7,489		(4,032)		3,457
Total	$	24,988	$	(14,967)	$	10,021	$	22,807	$	(12,617)	$	10,190

Amortization expense for intangible assets subject to amortization was approximately $0.8 million in total for each of the three-month periods ended December 31, 2023 and December 31, 2022. Of the total amortization expense, approximately $0.1 million was recorded to cost of revenues and approximately $0.7 million was recorded to operating expenses for each period.

Amortization expense for intangible assets subject to amortization was approximately $2.3 million and $2.4 million for the nine-month periods ending December 31, 2023 and December 31, 2022, respectively. Of the total amortization expense for the nine-months ended December 31, 2023, approximately $0.3 million was recorded to cost of revenues and approximately $2.0 million was recorded to operating expenses, compared to $0.4 million in cost of revenues and $2.0 million in operating expenses for the nine-months ended December 31, 2022.

We have one indefinite useful life intangible asset, with de minimis carrying value, which was included in trade names and non-compete agreements.

As of December 31, 2023, future estimated amortization expense was as follows:


Fiscal Year Ending March 31,
(In thousands)
2024	$	933
2025	3,370
2026	2,145
2027	1,822
2028	1,259
Thereafter	480
	$	10,009

The future estimated amortization expense does not include the indefinite useful life intangible asset described above.

Warranty Reserve Activity

Warranty reserve is recorded as accrued liabilities in the accompanying unaudited condensed balance sheets. The following table presents activity related to the warranty reserve:


	Nine Months Ended December 31,
	2023		2022
	(In thousands)
Balance at beginning of fiscal year	$	758	$	616
Additions charged to cost of sales	330		239
Warranty claims	(268)		(136)
Balance at end of reporting period	$	820	$	719

Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share:


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
	(In thousands, except per share amounts)
Numerator:


Net income (loss)	$	355	$	(2,049)	$	3,031	$	(14,311)
Denominator:
Weighted average common shares used in basic computation	42,944		42,341		42,798		42,336
Stock options and other dilutive awards	840		—		964		—
Weighted average common shares used in diluted computation	43,784		42,341		43,762		42,336
Net income (loss) per common share
Basic net income (loss) per share	$	0.01	$	(0.05)	$	0.07	$	(0.34)
Diluted net income (loss) per share	$	0.01	$	(0.05)	$	0.07	$	(0.34)

The following instruments were excluded for purposes of calculating weighted average common share equivalents in the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:


	Three Months Ended December 31,		Nine Months Ended December 31,
	2023	2022	2023	2022
	(In thousands)
Stock options	4,098	6,359	3,558	5,870
Restricted stock units	150	503	318	431