Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

Loss before provision for income taxes consisted of the following for the years ended March 31, 2022 and 2021 (in thousands):


	Year Ended March 31,
	2022		2021
United States	$	(20,232)	$	(18,388)
Foreign		40		20
Loss before provision for income taxes	$	(20,192)	$	(18,368)

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


	Year Ended March 31,
	2022		2021
Federal income tax benefit at the statutory rate	$	(4,240)	$	(3,857)
State taxes, net of federal effect		(601)		(311)
Foreign taxes		5		9
Expiring NOLs and tax credits		11,028		14,086
Impact of state rate change		(263)		160
Valuation allowance		(5,997)		(10,154)
Shortfall in tax benefit—stock compensation		75		87
True-up		(4)		(2)
Other		16		1
Income tax expense	$	19	$	19


	Year Ended March 31,
	2022		2021
Federal income tax benefit at the statutory rate	$	(4,240)	$	(3,857)
State taxes, net of federal effect		(601)		(311)
Foreign taxes		5		9
Expiring NOLs and tax credits		11,028		14,086
Impact of state rate change		(263)		160
Valuation allowance		(5,997)		(10,154)
Shortfall in tax benefit—stock compensation		75		87
True-up		(4)		(2)
Other		16		1
Income tax expense	$	19	$	19

The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2022 and 2021 (in thousands):


	Year Ended March 31,
	2022		2021
Deferred tax assets:
Inventories	$	1,438	$	889
Warranty reserve		350		1,357
Bad debt reserve		199		58
Deferred revenue		1,708		1,434
Net operating loss (“NOL”) carryforwards		131,395		135,895
Tax credit carryforwards		13,370		13,988
Depreciation, amortization and impairment loss		—		1,237
Lease liability		1,464		1,146
Interest limitation		4,655		3,735
Other		1,094		1,032
Deferred tax assets		155,673		160,771
Valuation allowance for deferred tax assets		(153,673)		(159,671)
Deferred tax assets, net of valuation allowance		2,000		1,100
Deferred tax liabilities:
Depreciation, amortization and impairment loss		(594)		—
Right of use assets		(1,406)		(1,100)
Net deferred tax assets	$	—	$	—

The Company’s NOL and tax credit carryforwards for federal and state income tax purposes at March 31, 2022 were as follows (in thousands):


			Expiration
	Amount		Period
Federal NOL generated before April 1, 2018	$	494,213	2022 - 2038
Federal NOL generated after March 31, 2018	$	72,330	Indefinite
State NOL	$	177,187	2025 - 2039
Federal tax credit carryforwards	$	5,713	2022 - 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, 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
Gross increase related to prior year tax positions		—
Gross increase related to current year tax positions		—
Lapse of statute of limitations		(48)
Balance at March 31, 2022	$	1,898