Balance Sheet Components

6 Months Ended

Sep. 30, 2023

Balance Sheet Related Disclosures [Abstract]

8. Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consisted of the following:


	September 30, 2023			March 31, 2023
	(in thousands)
Computer and software	$	9,993		$	10,376
Laboratory equipment and software		52,803			52,785
Furniture and office equipment		8,963			8,946
Leasehold improvements		40,955			40,964
Capitalized asset retirement obligations		853		853
Property and equipment, gross		113,567			113,924
Less: accumulated depreciation and amortization		(80,762	)		(75,316	)
Property and equipment, net	$	32,805		$	38,608

Depreciation and amortization expense was $3.0 million and $3.9 million for the three months ended September 30, 2023 and 2022, respectively, and $6.0 million and $7.8 million for the six months ended September 30, 2023 and 2022, respectively.

Internal-Use Software, Net

Internal-use software, net consisted of the following:


	September 30, 2023			March 31, 2023
	(in thousands)
Capitalized internal-use software	$	30,901		$	25,180
Less: accumulated amortization		(11,930	)		(9,519	)
Internal-use software, net	$	18,971		$	15,661

The Company capitalized $3.4 million and $2.4 million in internal-use software during the three months ended September 30, 2023 and 2022, respectively, and $6.8 million and $4.3 million in internal-use software during the six months ended September 30, 2023 and 2022, respectively. In addition, the Company wrote off $1.1 million of internal-use software in the three months ended September 30, 2023 related to the disposition of Lemonaid Health Limited, refer to Note 17 — “Disposition of Subsidiary” for additional information.

Amortization and impairment of internal-use software was $1.3 million and $1.2 million for the three months ended September 30, 2023 and 2022, respectively, and $2.5 million for each of the six months ended September 30, 2023 and 2022.

Intangible Assets, Net

Intangible assets, net consisted of the following:


	September 30, 2023
	Weighted Average Remaining Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in thousands, except years)
Customer relationships		0.1	$	14,900	$	(14,279	)	$	621
Partnerships		8.1		9,000		(1,725	)		7,275
Trademark		3.1		11,000		(4,217	)		6,783
Developed technology		5.1		24,100		(6,599	)		17,501
Non-compete agreements		3.1		2,800		(1,073	)		1,727
Patents		5.0		5,500		(1,572	)		3,928
Total intangible assets			$	67,300	$	(29,465	)	$	37,835


	March 31, 2023
	Weighted Average Remaining Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization			Cumulative Impairment Charge			Cumulative Currency Translation			Net Carrying Amount
	(in thousands, except years)
Customer relationships		0.6	$	14,900	$	(10,554	)	$	—		$	—		$	4,346
Partnerships		8.6		23,200		(4,385	)		(9,968	)		(1,122	)		7,725
Trademark		3.6		11,000		(3,117	)		—			—			7,883
Developed technology		5.6		24,100		(4,877	)		—			—			19,223
Non-compete agreements		3.6		2,800		(793	)		—			—			2,007
Patents		5.5		5,500		(1,164	)		—			—			4,336
Total intangible assets			$	81,500	$	(24,890	)	$	(9,968	)	$	(1,122	)	$	45,520

Amortization expense for intangible assets was $3.8 million and $4.5 million for the three months ended September 30, 2023 and 2022, respectively, and $7.7 million and $9.0 million for the six months ended September 30, 2023 and 2022, respectively.

During the third quarter of fiscal 2023, due to decreased revenue associated with a delayed product launch and margin forecasts for the U.K. partnership business, the Company performed an interim quantitative impairment test for the U.K. partnership asset group as of December 31, 2022. The fair value of the asset group was calculated using a discounted cash flow and was determined to be lower than its carrying value. As a result, the Company recorded a $10.0 million impairment charge to write down the value of the partnership intangible asset to its estimated fair value. The charge was recorded within sales and marketing expenses in its Consumer and Research Services segment in the condensed consolidated statements of operations and comprehensive loss during the third quarter of fiscal 2023. There was no impairment to intangible assets during the three and six months ended September 30, 2023 and 2022.

Estimated future amortization expense of the identified intangible assets as of September 30, 2023 was as follows:


	Estimated Amortization
	(in thousands)
Fiscal years ending March 31,
Remainder of 2024 (Remaining six months)	$	4,581
2025		7,919
2026		7,919
2027		6,769
2028		5,006
Thereafter		5,641
Total estimated future amortization expense	$	37,835

Accrued Expense and Other Current Liabilities

Accrued expense and other current liabilities consisted of the following:


	September 30, 2023		March 31, 2023
	(in thousands)
Accrued payables	$	8,590	$	17,030
Accrued compensation and benefits		11,693		14,737
Accrued bonus		8,335		21,600
Accrued clinical expenses		15,195		11,707
Accrued taxes and other		873		1,356
Total accrued expenses and other current liabilities	$	44,686	$	66,430