Property and Equipment

9 Months Ended

Dec. 31, 2019

4.Property and Equipment

Property and equipment consists of the following at December 31, 2019 and March 31, 2019 (in thousands):



	Estimated	December 31,		March 31,
	useful life	2019		2019
Network sites and equipment	5-10 years	$	16,187	$	15,954
Furniture and fixture and other equipment	2-5 years		291		1,026
Computer equipment	5-7 years		143		140
Computer software	1-7 years		480		28
Leasehold improvements	Shorter of the lease term or 10 years		234		351
			17,335		17,499
Less accumulated depreciation			9,333		7,952
			8,002		9,547
Construction in process			86		283
Property and equipment, net		$	8,088	$	9,830

Depreciation expense for the three months ended December 31, 2019 and 2018 amounted to $1.1 million and $0.7 million, respectively. The depreciation expense for the nine months ended December 31, 2019 and 2018 amounted to $2.4 million and $2.1 million, respectively. During the three months ended December 31, 2019, the Company adjusted the estimated asset retirement obligations and useful life for its network sites, resulting in additional non-cash capitalized costs in network sites amounting to $0.5 million and depreciation expense of $0.5 million for the three and nine months ended December 31, 2019.

During the nine months ended December 31, 2018, the Company recorded a $0.7 million non-cash charge for long-lived asset impairment of its radio assets to reduce the carrying value to the estimated recoverable amount. During the three and nine months ended December 31, 2019, the Company recorded a $22,000 non-cash impairment charge for network sites and equipment to reduce the carrying values to zero.

Computer software includes software developed or obtained for internal use during the application development stage with an estimated useful life of 5 to 7 years. Leasehold improvements include certain allowances for tenant improvements related to the expansion of the Company’s corporate headquarters.

On September 30, 2019, the Company transferred network, computer and other equipment with a net book value of $72,000 used to support the pdvConnect application services in exchange for a 19.5% ownership interest to the LLC.