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 |
|
|