4. BALANCE SHEET DETAIL

6 Months Ended

Sep. 30, 2022

BALANCE SHEET DETAIL

NOTE 4 - BALANCE SHEET DETAIL

NOTE 4—BALANCE SHEET DETAIL

	September 30, 2022		March 31, 2022
	(In thousands)
Inventories:
Work-in-progress	$	3,582	$	3,085
Finished goods		1,941		1,555
Inventory at distributors		9		15
	$	5,532	$	4,655

	September 30, 2022		March 31, 2022
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	4,890	$	4,599
Less: Allowances for doubtful accounts and other		(71)		(81)
	$	4,819	$	4,518

	September 30, 2022		March 31, 2022
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	436	$	68
Other receivables		249		226
Other prepaid expenses and other current assets		964		1,261
	$	1,649	$	1,555

	September 30, 2022		March 31, 2022
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	18,566	$	18,415
Software		4,428		4,425
Land		3,900		3,900
Building and building improvements		3,739		3,735
Furniture and fixtures		103		102
Leasehold improvements		906		878
		31,642		31,455
Less: Accumulated depreciation		(24,486)		(24,096)
	$	7,156	$	7,359

Depreciation expense was $196,000 and $197,000 for the three months ended September 30, 2022 and 2021, respectively, and $393,000 and $384,000 for the six months ended September 30, 2022 and 2021.

The following tables summarize the components of intangible assets and related accumulated amortization balances at September 30, 2022 and March 31, 2022 (in thousands):

	As of September 30, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
Product designs	$	590	$	(590)	$	—
Patents		4,220		(2,314)		1,906
Software		80		(80)		—
Total	$	4,890	$	(2,984)	$	1,906

	As of March 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
Product designs	$	590	$	(590)	$	—
Patents		4,220		(2,197)		2,023
Software		80		(80)		—
Total	$	4,890	$	(2,867)	$	2,023

Amortization of intangible assets included in cost of revenues was $58,000 and $58,000 for the three months ended September 30, 2022 and 2021, respectively, and $117,000 and $117,000 for the six months ended September 30, 2022 and 2021.

The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Based on the uncertainty of forecasts, events such as the failure to generate revenue from future product launches could result in impairment in the future. The Company identified a potential impairment indicator for the finite lived intangible assets and performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows of the asset group to the carrying amount as of March 31, 2022. The result of the recoverability test indicated that the sum of the expected future cash flows was greater than the carrying amount of the finite lived intangible assets. Based on the uncertainty of forecasts inherent with a new product, events such as the failure to generate forecasted revenue from the APU product could result in a non-cash impairment charge in future periods.

As of September 30, 2022, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):

Fiscal year ending March 31,
2023 (remaining six months)	$	117
2024		233
2025		233
2026		233
2027		233
Thereafter		857
Total	$	1,906

	September 30, 2022		March 31, 2022
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	3,972	$	5,524
Accrued commissions		314		232
Income taxes payable		132		127
Miscellaneous accrued expenses		1,395		967
	$	5,813	$	6,850