Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.1.1.u2
Income Taxes (Tables)
12 Months Ended
Mar. 31, 2023
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, 2023 and 2022 (in thousands):

Year Ended March 31,

 

    

2023

    

2022

 

United States

$

(24,560)

$

(22,391)

Foreign

    

 

45

    

 

40

Loss before provision for income taxes

$

(24,515)

$

(22,351)

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,

 

    

2023

    

2022

 

Federal income tax benefit at the statutory rate

$

(5,148)

$

(4,694)

State taxes, net of federal effect

    

 

(1,837)

    

 

(714)

Foreign taxes

 

 

5

Expiring NOLs and tax credits

10,156

11,028

Impact of state rate change

 

107

 

(142)

Valuation allowance

 

(3,532)

 

(5,552)

Shortfall in tax benefit—stock compensation

 

262

 

75

True-up

(5)

Other

 

4

 

13

Income tax expense

$

7

$

19

Schedule of the Company's deferred tax assets and liabilities

Year Ended March 31,

 

    

2023

    

2022

 

Federal income tax benefit at the statutory rate

$

(5,148)

$

(4,694)

State taxes, net of federal effect

    

 

(1,837)

    

 

(714)

Foreign taxes

 

 

5

Expiring NOLs and tax credits

10,156

11,028

Impact of state rate change

 

107

 

(142)

Valuation allowance

 

(3,532)

 

(5,552)

Shortfall in tax benefit—stock compensation

 

262

 

75

True-up

(5)

Other

 

4

 

13

Income tax expense

$

7

$

19

The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2023 and 2022 (in thousands):

    

Year Ended March 31,

2023

    

2022

Deferred tax assets:

Inventories

$

3,456

$

2,194

Warranty reserve

 

3,140

 

2,513

Bad debt reserve

1,217

199

Deferred revenue

 

2,385

 

2,284

Net operating loss (“NOL”) carryforwards

 

126,180

 

130,928

Tax credit carryforwards

 

12,686

 

13,370

Depreciation, amortization and impairment loss

 

496

 

Lease liability

 

2,113

 

1,464

Interest limitation

 

6,330

 

4,655

Other

 

1,279

 

1,095

Deferred tax assets

 

159,282

 

158,702

Valuation allowance for deferred tax assets

 

(153,171)

 

(156,702)

Deferred tax assets, net of valuation allowance

 

6,111

 

2,000

Deferred tax liabilities:

Depreciation, amortization and impairment loss

 

(3,998)

 

(594)

Right of use assets

 

(2,113)

 

(1,406)

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, 2023 were as follows (in thousands):

Expiration

    

Amount

    

Period

 

Federal NOL generated before April 1, 2018

$

449,151

 

2023 - 2038

Federal NOL generated after March 31, 2018

$

89,643

 

Indefinite

State NOL

$

185,650

 

2025 - 2039

Federal tax credit carryforwards

$

5,029

 

2023 - 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, 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

Gross increase related to prior year tax positions

 

Gross increase related to current year tax positions

 

Lapse of statute of limitations

 

(42)

Balance at March 31, 2023

$

1,856