2.Supplemental Financial Information

Inventories

The following table presents details of our inventories:


	September 30,		March 31,
	2019		2019
		(In thousands)
Materials and supplies	$	1,234	$	1,517
Work in process		71		356
Finished goods		1,237		1,043
	$	2,542	$	2,916

Property and Equipment, net

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


	September 30,		March 31,
	2019		2019
	(In thousands)
Equipment	$	6,985	$	6,444
Leasehold improvements		3,008		2,939
Accumulated depreciation		(7,815)		(7,418)
	$	2,178	$	1,965

Depreciation expense was approximately $222,000 and $420,000 for the three and six months ended September 30, 2019, respectively. Depreciation expense was approximately $198,000 and $463,000 for the three and six months ended September 30, 2018, respectively.

Intangible Assets

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


		September 30, 2019					March 31, 2019
	Gross						Gross
	Carrying		Accumulated		Net Book		Carrying		Accumulated		Net Book
	Amount		Amortization		Value		Amount		Amortization		Value
	(In thousands)

Technology	$	1,856	$	(1,856)	$	—	$	1,856	$	(1,856)	$	—
Customer contracts / relationships		4,250		(896)		3,354		750		(750)		—
Trade names and non-compete agreements		1,320		(1,127)		193		1,110		(1,110)		—
Capitalized software development costs		6,289		(2,952)		3,337		5,768		(2,482)		3,286
Total	$	13,715	$	(6,831)	$	6,884	$	9,484	$	(6,198)	$	3,286

Amortization expense for intangible assets subject to amortization was approximately $387,000 and $634,000 for the three and six months ended September 30, 2019, respectively. Amortization expense for intangible assets subject to amortization was approximately $285,000 and $550,000 for the three and six months ended September 30, 2018, respectively. Approximately $157,000 and $337,000 of the intangible asset amortization was recorded to cost of revenues, and approximately $231,000 and $297,000 was recorded to amortization expense for the three and six months ended September 30, 2019, respectively, in the consolidated statements of operations. Approximately $220,000 and $420,000 of the intangible asset amortization was recorded to cost of revenues, and approximately $65,000 and $130,000 was recorded to amortization expense for the three and six months ended September 30, 2018, respectively, in the consolidated statements of operations.

As of September 30, 2019, future estimated amortization expense is as follows:


Fiscal Year Ending March 31,
(In thousands)
Remainder of 2020	$	864
2021		1,412
2022		1,198
2023		967
2024		849
Thereafter		1,594
	$	6,884

Warranty Reserve Activity

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


	Six Months Ended
	September 30,
	2019		2018
	(In thousands)
Balance at beginning of fiscal year	$	461	$	403
Additions charged to cost of sales		372		409
Warranty claims		(338)		(330)
Balance at end of period	$	495	$	482

Earnings Per Share

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


	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Numerator:
Net loss	$	(2,187)	$	(1,341)	$	(3,759)	$	(2,920)

Denominator:
Weighted average common shares used in basic computation		40,493		33,242		37,397		33,221
Dilutive stock options		—		—		—		—
Dilutive restricted stock units		—		—		—		—
Weighted average common shares used in diluted computation		40,493		33,242		37,397		33,221

Net loss per share:
Basic	$	(0.05)	$	(0.04)	$	(0.10)	$	(0.09)
Diluted	$	(0.05)	$	(0.04)	$	(0.10)	$	(0.09)

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


	Three Months Ended		Six Months Ended
	September 30,		September 30,
	2019	2018	2019	2018
	(In thousands)
Stock options	5,039	4,152	5,050	4,161
Restricted stock units	438	137	282	143