It had green color fading into orange then into red to show damage. There was like a core piece that you would build off of and add whatever parts you wanted: adding guns, rockets/jets, lasers, etc. to the hull. Pieces of the ship would break off and when the core took enough damage, the ship would be destroyed. You could have your ship attack certain parts of an enemy ship. Played it on PC, but I can't remember the name for the life of me.
Source: https://www.reddit.com/r/oldgames/comments/12476vk/old_buildyourown_space_battleship_game_with_neon/