Note 4. Inventories

The components of inventories are as follows:


	September 30, 2011		March 31, 2011
	(in $000’s)
Raw materials and supplies	$	3,742	$	2,784
Work-in-progress		3,699		3,689
Finished goods		1,770		1,032

	$	9,211	$	7,505

The Company’s inventories relate to its circulatory care product lines, primarily the Impella, AB5000 and BVS 5000. Finished goods and work-in-process inventories consist of direct material, labor and overhead. During the six months ended September 30, 2011 and 2010, the Company recorded $0.4 million and $1.4 million, respectively, in write downs of inventory, including excess quantities and obsolete inventory.

From time to time, the Company loans finished goods inventory on a short-term basis to customers for demonstration purposes and this inventory is generally amortized over a one to five year life. The Company had $0.6 million and $0.7 million in demo inventory at September 30, 2011 and March 31, 2011, respectively. Amortization expense related to demo inventory was $0.2 million and $0.3 million for the three months ending September 30, 2011 and 2010, respectively. Amortization expense related to demo inventory was $0.3 million and $0.4 million for the six months ended September 30, 2011 and 2010, respectively.