2.Supplemental Financial Information

Inventories

The following table presents details of our inventories:

	June 30,		March 31,
	2018		2018
	(In thousands)
Materials and supplies	$	1,697	$	1,745
Work in process	400		232
Finished goods	699		944

	$	2,796	$	2,921

Property and Equipment, net

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

	June 30,			March 31,
	2018			2018
	(In thousands)
Equipment	$	6,256		$	6,053
Leasehold improvements	2,880			2,880
Accumulated depreciation	(6,839		)	(6,600		)

	$	2,297		$	2,333

Depreciation expense was approximately $265,000 and $184,000 for the three months ended June 30, 2018 and 2017, respectively.

Intangible Assets

There are no indefinite lived intangible assets on our unaudited consolidated balance sheets. The following table presents details of our net intangible assets:

	June 30, 2018							March 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
	(In thousands)

Technology	$	1,856	$	(1,856	)	$	—	$	1,856	$	(1,856	)	$	—
Customer contracts / relationships	750		(750		)	—		750		(750		)	—
Trade names and non-compete agreements	1,110		(1,105		)	5		1,110		(1,102		)	8
Capitalized software development costs	5,190		(1,627		)	3,563		5,108		(1,365		)	3,743

Total	$	8,906	$	(5,338	)	$	3,568	$	8,824	$	(5,073	)	$	3,751

Amortization expense for intangible assets subject to amortization was approximately $265,000 and $137,000 for the three months ended June 30, 2018 and 2017, respectively. Approximately $200,000 and $104,000 of the intangible asset amortization was recorded to cost of revenues, and approximately $65,000 and $33,000 was recorded to amortization expense for the three months ended June 30, 2018 and 2017, respectively, in the consolidated statements of operations.

We do not have any intangible assets with indefinite useful lives. As of June 30, 2018, our net capitalized software development costs of approximately $3.6 million is primarily associated with our Oracle ERP system design and implementation of approximately $2.2 million, which has a useful life of 10 years beginning Fiscal 2019;

As of June 30, 2018, future estimated amortization expense is as follows:

Fiscal Year Ending March 31,
(In thousands)
Remainder of 2019	$	836
2020	856
2021	351
2022	244
2023	244
Thereafter	1,037

	$	3,568

Warranty Reserve Activity

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

	Three Months Ended
	June 30,
	2018			2017
	(In thousands)
Balance at beginning of fiscal year	$	403		$	278
Additions charged to cost of sales	335			275
Warranty claims	(210		)	(178		)

Balance at end of period	$	528		$	375

Earnings Per Share

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

	Three Months Ended
	June 30,
	2018			2017
	(In thousands)
Numerator:
Loss from continuing operations	$	(1,579	)	$	(556	)
Gain on sale of discontinued operation, net of tax	—			86

Net loss	$	(1,579	)	$	(470	)


Denominator:
Weighted average common shares used in basic computation	33,201			32,506
Dilutive stock options	—			—
Dilutive restricted stock units	—			—

Weighted average common shares used in diluted computation	33,201			32,506


(Loss) income from continuing operations per share:
Basic	$	(0.05	)	$	(0.02	)

Diluted	$	(0.05	)	$	(0.02	)

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

	Three Months Ended
	June 30,
	2018	2017
	(In thousands)

Stock options	4,169	3,777
Restricted stock units	148	232