Note 5 - Capitalized Software Development Costs

9 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Research, Development, and Computer Software Disclosure [Text Block]

5

.  Capitalized Software Development Costs

The Company capitalizes costs for internal use software incurred during the application development stage that are included in research and development expenses. Costs related to preliminary project activities and post implementation activities are expensed as incurred. The Company capitalized

$0.6

million of research and development costs during the both the

three

months ended

December 31, 2018

and

2017,

respectively, and

$1.9

million and

$1.8

million of research and development costs during the

nine

months ended

December 31, 2018

and

2017,

respectively.

Capitalized software is amortized once the product is ready for its intended use, using the straight-line method over the estimated useful lives of the assets, which is

three

years. Amortization expense of capitalized software is included in the product cost of revenue and was

$0.5

million during the both

three

months ended

December 31, 2018

and

2017,

respectively, and

$1.6

million and

$1.2

million during the

nine

months ended

December 31, 2018

and

2017,

respectively. The unamortized balance of capitalized software was

$3.4

million and

$3.0

million as of

December 31, 2018

and

March 31, 2018,

respectively.

Management continues to evaluate the capitalized software development costs across all product lines and did

not

identify any indicators which required impairment to be recorded during the

nine

months ended

December 31, 2018

or

2017.