Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
12 Months Ended
Mar. 31, 2021
Income Taxes  
Schedule of loss before provision for income taxes

Loss before provision for income taxes consisted of the following for the years ended March 31, 2021 and 2020 (in thousands):

 

 

 

 

 

 

 

 

 

 

Year Ended March 31,

 

 

    

2021

    

2020

 

United States

 

$

(18,388)

 

$

(21,920)

 

Foreign

    

 

20

    

 

34

 

Loss before provision for income taxes

 

$

(18,368)

 

$

(21,886)

 

 

Schedule of reconciliation of income tax (benefit) expense to the federal statutory rate

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

 

 

 

 

 

 

 

 

 

 

Year Ended March 31,

 

 

    

2021

    

2020

 

Federal income tax benefit at the statutory rate

 

$

(3,857)

 

$

(4,596)

 

State taxes, net of federal effect

    

 

(311)

    

 

(248)

 

Foreign taxes

 

 

 9

 

 

 2

 

Expiring NOLs and tax credits

 

 

14,086

 

 

6,273

 

Impact of state rate change

 

 

160

 

 

24

 

Valuation allowance

 

 

(10,154)

 

 

(1,792)

 

Shortfall in tax benefit—stock compensation

 

 

87

 

 

321

 

True-up

 

 

(2)

 

 

(2)

 

Other

 

 

 1

 

 

30

 

Income tax expense

 

$

19

 

$

12

 

 

Schedule of the Company's deferred tax assets and liabilities

The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2021 and 2020 (in thousands):

 

 

 

 

 

 

 

 

    

Year Ended March 31,

 

 

2021

    

2020

Deferred tax assets:

 

 

 

 

 

 

Inventories

 

$

889

 

$

1,536

Warranty reserve

 

 

1,357

 

 

454

Bad debt reserve

 

 

58

 

 

139

Deferred revenue

 

 

1,434

 

 

1,684

Net operating loss (“NOL”) carryforwards

 

 

135,895

 

 

146,503

Tax credit carryforwards

 

 

13,988

 

 

15,227

Depreciation, amortization and impairment loss

 

 

1,237

 

 

1,652

Lease liability

 

 

1,146

 

 

1,263

Interest limitation

 

 

3,735

 

 

1,570

Other

 

 

1,032

 

 

998

Deferred tax assets

 

 

160,771

 

 

171,026

Valuation allowance for deferred tax assets

 

 

(159,671)

 

 

(169,825)

Deferred tax assets, net of valuation allowance

 

 

1,100

 

 

1,201

Deferred tax liabilities:

 

 

 

 

 

 

Right of use assets

 

 

(1,100)

 

 

(1,201)

Net deferred tax assets

 

$

 —

 

$

 —

 

Schedule of the Company's NOL and tax credit carry forwards for federal and state income tax purposes

The Company’s NOL and tax credit carryforwards for federal and state income tax purposes at March 31, 2021 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Expiration

 

 

    

Amount

    

Period

 

Federal NOL generated before April 1, 2018

 

$

543,781

 

2022 - 2038

 

Federal NOL generated after March 31, 2018

 

$

48,899

 

Indefinite

 

State NOL

 

$

162,967

 

2022 - 2039

 

Federal tax credit carryforwards

 

$

6,331

 

2022 - 2038

 

State tax credit carryforwards

 

$

9,692

 

Indefinite

 

 

Schedule of reconciliation of the beginning and ending amount of total gross unrecognized tax benefits

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

 

 

 

 

 

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

 

Gross increase related to prior year tax positions

 

 

 —

 

Gross increase related to current year tax positions

 

 

 —

 

Lapse of statute of limitations

 

 

(326)

 

Balance at March 31, 2021

 

$

1,946