Income Taxes (Tables)

12 Months Ended

Mar. 31, 2016

A reconciliation of income tax (benefit) expense to the federal statutory rate follows (in thousands):


	Year Ended March 31,
	2016		2015		2014
Federal income tax at the statutory rate	$	(8,558)	$	(10,681)	$	(5,452)
State taxes, net of federal effect		(250)		(671)		(93)
Foreign taxes		109		33		134
R&D tax credit		(451)		(392)		37
Impact of state rate change		478		(2,627)		492
Warrant liability		—		—		(3)
Expiring NOL		3,058		3,865		1,543
Valuation allowance		5,596		10,583		3,614
Excess tax benefit—stock compensation		—		—		—
Other		38		7		(52)
Income tax expense (benefit)	$	20	$	117	$	220

The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2016 and 2015 (in thousands):


	2016		2015
Deferred tax assets:
Inventories	$	2,903	$	3,323
Warranty reserve		616		1,217
Bad debt reserve		3,350		4,223
Deferred revenue		1,101		953
Net operating loss (“NOL”) carryforwards		226,007		218,826
Tax credit carryforwards		19,411		18,860
Depreciation, amortization and impairment loss		3,045		3,231
Other		4,212		5,154
Deferred tax assets		260,645		255,787
Valuation allowance for deferred tax assets		(252,349)		(246,753)
Deferred tax assets, net of valuation allowance		8,296		9,034
Deferred tax liabilities:
Federal benefit of state taxes		(8,296)		(9,034)
Net deferred tax assets	$	—	$	—

The Company’s NOL and tax credit carryforwards for federal and state income tax purposes at March 31, 2016 were as follows (in thousands):


			Expiration
	Amount		Period
Federal NOL	$	652,385	2018 - 2035
State NOL	$	180,610	2016 - 2035
Federal tax credit carryforwards	$	9,940	2018 - 2035
State tax credit carryforwards	$	9,471	Indefinite

A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits is as follows (in thousands):


Balance at March 31, 2013	$	2,418
Gross decrease related to prior year tax positions		(93)
Gross increase related to prior year tax positions		1
Gross increase related to current year tax positions		115
Lapse of statute of limitations		—
Balance at March 31, 2014	$	2,441
Gross increase related to prior year tax positions		11
Gross increase related to current year tax positions		112
Lapse of statute of limitations		—
Balance at March 31, 2015	$	2,564
Gross increase related to prior year tax positions		13
Gross increase related to current year tax positions		124
Lapse of statute of limitations		—
Balance at March 31, 2016	$	2,701