Income Taxes (Tables)

12 Months Ended

Mar. 31, 2020

Loss before provision for income taxes consisted of the following for the years ended March 31, 2020 and 2019 (in thousands):


	Year Ended March 31,
	2020		2019
United States	$	(21,920)	$	(16,678)
Foreign		34		27
Loss before provision for income taxes	$	(21,886)	$	(16,651)

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


	Year Ended March 31,
	2020		2019
Federal income tax benefit at the statutory rate	$	(4,596)	$	(3,497)
State taxes, net of federal effect		(248)		(583)
Foreign taxes		2		3
Expiring NOLs and tax credits		6,273		6,137
Impact of state rate change		24		(67)
Valuation allowance		(1,792)		(2,135)
Shortfall in tax benefit—stock compensation		321		111
True-up		(2)		2
Other		30		37
Income tax expense	$	12	$	8

The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2020 and 2019 (in thousands):


	Year Ended March 31,
	2020		2019
Deferred tax assets:
Inventories	$	1,536	$	1,842
Warranty reserve		454		630
Bad debt reserve		139		1,245
Deferred revenue		1,684		1,584
Net operating loss (“NOL”) carryforwards		146,503		145,835
Tax credit carryforwards		15,227		16,021
Depreciation, amortization and impairment loss		1,652		2,734
Lease liability		1,263		—
Interest limitation		1,570		—
Other		998		1,726
Deferred tax assets		171,026		171,617
Valuation allowance for deferred tax assets		(169,825)		(171,617)
Deferred tax assets, net of valuation allowance		1,201		—
Deferred tax liabilities:
Right of use assets		(1,201)		—
Net deferred tax assets	$	—	$	—

The Company’s NOL and tax credit carryforwards for federal and state income tax purposes at March 31, 2020 were as follows (in thousands):


			Expiration
	Amount		Period
Federal NOL generated before April 1, 2018	$	604,959	2021 - 2038
Federal NOL generated after March 31, 2018	$	38,730	Indefinite
State NOL	$	162,008	2021 - 2039
Federal tax credit carryforwards	$	7,570	2021 - 2038
State tax credit carryforwards	$	9,692	Indefinite

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


Balance at March 31, 2018	$	2,467
Gross increase related to prior year tax positions		—
Gross increase related to current year tax positions		—
Lapse of statute of limitations		(77)
Balance at March 31, 2019	$	2,390
Gross increase related to prior year tax positions		—
Gross increase related to current year tax positions		—
Lapse of statute of limitations		(118)
Balance at March 31, 2020	$	2,272