2. Supplementary Financial Information

Inventories

The following table presents details regarding our inventories:

	March 31,
	2017		2016
	(In thousands)
Materials and supplies	$	887	$	1,754
Work in process		298		217
Finished goods		1,065		1,182

	$	2,250	$	3,153

Property and Equipment, net

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

	March 31,
	2017			2016
	(In thousands)
Equipment	$	7,078		$	6,530
Leasehold improvements		2,494			2,463
Accumulated depreciation		(7,508	)		(6,854	)

	$	2,064		$	2,139

Depreciation expense was approximately $729,000, $649,000 and $525,000 in Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. Approximately $269,000, $252,000 and $225,000 of the depreciation expense was recorded to cost of revenues, and approximately $460,000, $397,000 and $300,000 was recorded to operating expenses Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively, in the consolidated statement of operations.

Intangible Assets

The following table presents details regarding our intangible assets:

	March 31,
	2017					2016
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Technology	$	1,856	$	(1,828	)	$	1,856	$	(1,708	)
Customer contracts / relationships		750		(726	)		750		(622	)
Trade names and non-compete agreements		1,110		(1,066	)		1,110		(1,008	)
Capitalized software development costs		2,158		(756	)		988		(415	)

Total	$	5,874	$	(4,376	)	$	4,704	$	(3,753	)

Amortization expense for intangible assets subject to amortization was approximately $623,000, $526,000 and $597,000 for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. Approximately $342,000, $166,000 and $166,000 of the intangible asset amortization was recorded to cost of revenues, and approximately $281,000, $360,000 and $431,000 was recorded to amortization expense for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively, in the consolidated statement of operations.

We do not have any intangible assets with indefinite useful lives. As of March 31, 2017, the future estimated amortization expense of approximately $1.5 million is associated with our Agriculture and Weather Analytics and Roadway Sensors business segments, as follows:

Year Ending March 31, (In thousands)
2018	$	650
2019		571
2020		277

	$	1,498

Refer to Note 4 for additional information regarding intangible assets acquired during the last three fiscal years.

Goodwill

The following table presents the activity related to the carrying value of our goodwill by reportable segment for Fiscal 2015, Fiscal 2016 and Fiscal 2017:

	Roadway Sensors		Transportation Systems			Ag & Weather Analytics			Total
	(In thousands)
Balance—March 31, 2015
Goodwill	$	8,214	$	14,906		$	2,168		$	25,288
Accumulated impairment losses		—		(7,970	)		—			(7,970	)

	$	8,214	$	6,936		$	2,168		$	17,318

Balance—March 31, 2016
Goodwill	$	8,214	$	14,906		$	2,168		$	25,288
Accumulated impairment losses		—		(7,970	)		—			(7,970	)

		8,214		6,936			2,168			17,318

Balance—March 31, 2017
Goodwill	$	8,214	$	14,906		$	2,168		$	25,288
Accumulated impairment losses		—		(7,970	)		(2,168	)		(10,138	)

	$	8,214	$	6,936		$	—		$	15,150

Warranty Reserve Activity

The following table presents activity with respect to the warranty reserve:

	Year Ended March 31,
	2017			2016			2015
	(In thousands)
Balance at beginning of fiscal year	$	193		$	181		$	184
Additions charged to cost of sales		382			236			134
Warranty claims		(297	)		(224	)		(137	)

Balance at end of fiscal year	$	278		$	193		$	181

Earnings Per Share

The following table sets forth the computation of basic and diluted loss from continuing operations per share:

	Year Ended March 31,
	2017			2016			2015
	(In thousands, except per share amounts)
Numerator:
Loss from continuing operations	$	(5,187	)	$	(12,535	)	$	(1,277	)


Denominator:
Weighted average common shares used in basic computation		32,174			32,049			32,595
Dilutive stock options		—			—			—
Dilutive restricted stock units		—			—			—
Dilutive warrants		—			—			—

Weighted average common shares used in diluted computation		32,174			32,049			32,595


Loss from continuing operations per share:
Basic	$	(0.16	)	$	(0.39	)	$	(0.04	)


Diluted	$	(0.16	)	$	(0.39	)	$	(0.04	)

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

	Year Ended March 31,
	2017		2016		2015
	(In thousands)
Stock options		3,491		3,220		2,252
Restricted stock units		179		186		198