EQUIPMENT AND LEASEHOLD IMPROVEMENTS

6 Months Ended

Sep. 30, 2011

EQUIPMENT AND LEASEHOLD IMPROVEMENTS

EQUIPMENT AND LEASEHOLD IMPROVEMENTS

3. EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Equipment and leasehold improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives for equipment and furniture and fixtures, or the shorter of the land lease term or estimated useful lives for leasehold improvements as follows:

Equipment	3 to 10 years
Furniture and fixtures	7 years
Leasehold improvements	10 to 20 years

Equipment and leasehold improvements consist of the following:

	September 30, 2011			March 31, 2011
	(in thousands)
Equipment(1)	$	6,592		$	6,801
Leasehold improvements	7,394			7,367
Furniture and fixtures	119			95
	14,105			14,263
Less accumulated depreciation and amortization	(9,696		)	(9,817		)
Construction-in-progress	462			111
Equipment and leasehold improvements, net	$	4,871		$	4,557

(1)Includes $97,000 of equipment under capital lease with accumulated amortization of $29,000 and $19,000 at September 30, 2011 and March 31, 2011, respectively.

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amount to forecasted undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds its estimated future cash flows, then an impairment charge is recognized to the extent that the carrying amount exceeds the asset’s fair value. Management has determined no asset impairment existed as of September 30, 2011 and 2010. The Company recognized a loss on disposal of equipment in the amount of $62,000 and $64,000 for the three and six months ended September 30, 2011, respectively.  There was no disposal of assets for the three and six months ended September 30, 2010.