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Intangible Assets and Software Development Costs
9 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets and Software Development Costs

4. Intangible Assets and Software Development Costs

The following table summarizes our intangible assets and software development costs:

 

 

 

December 31 and March 31, 2020

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Net

 

 

 

carrying

 

 

Accumulated

 

 

Accumulated

 

 

carrying

 

(In thousands)

 

amount

 

 

amortization

 

 

Impairment

 

 

amount

 

Amortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

10,775

 

 

$

(10,775

)

 

$

 

 

$

 

Non-competition agreements

 

 

2,700

 

 

 

(2,700

)

 

 

 

 

 

 

Developed technology

 

 

10,398

 

 

 

(10,398

)

 

 

 

 

 

 

Trade names

 

 

230

 

 

 

(230

)

 

 

 

 

 

 

Patented technology

 

 

80

 

 

 

(80

)

 

 

 

 

 

 

 

 

 

24,183

 

 

 

(24,183

)

 

 

 

 

 

 

Trade names

 

 

8,400

 

 

N/A

 

 

 

 

 

 

8,400

 

Total intangible assets

 

$

32,583

 

 

$

(24,183

)

 

$

 

 

$

8,400

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software development costs

 

$

67,541

 

 

$

(45,535

)

 

$

(22,006

)

 

$

 

 

As of March 31, 2020, management determined the net realizable value of the remaining capitalized software development costs for certain solutions within our rGuest suite of products no longer exceeded their carrying value, and as a result, recorded non-cash impairment charges of $22.0 million for the year ended March 31, 2020. The impact of the COVID-19 pandemic on the hospitality industry resulted in economic conditions that made it difficult to project future sales and revenue accurately for the related rGuest solutions. After evaluating the Company’s strategy for market development and continued costs to support the software, an impairment charge was required. The amount of impairment recognized during the year ended March 31, 2020 reduced the carrying value of capitalized software development costs to zero with no remaining amortization expense to be recognized in future periods.

 

Amortization expense for software development costs related to assets to be sold, leased, or otherwise marketed was $3.1 million and $9.4 million for the three and nine months ended December 31, 2019. These charges are included as costs of goods sold - products in our condensed consolidated statements of operations.