Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Income (loss) before provision for income taxes consisted of the following for the years ended March 31, 2024 and 2023 (in thousands):


	Year Ended March 31,
	2024		2023
United States	$	7,357	$	(24,560)
Foreign		49		45
Income (loss) before provision for income taxes	$	7,406	$	(24,515)

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


	Year Ended March 31,
	2024		2023
Federal income tax benefit at the statutory rate	$	1,556	$	(5,148)
State taxes, net of federal effect		(609)		(1,837)
Expiring NOLs and tax credits		—		10,156
Redeemable noncontrolling interest		973		—
Impact of Chapter 11 reorganization, net		147,838		—
Impact of state rate change		—		107
Valuation allowance		(153,075)		(3,532)
Shortfall in tax benefit—stock compensation		—		262
True-up		3,326		(5)
Other		5		4
Income tax expense	$	14	$	7

The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2024 and 2023 (in thousands):


	Year Ended March 31,
	2024		2023
Deferred tax assets:
Inventories	$	—	$	3,456
Warranty reserve		—		3,140
Bad debt reserve		—		1,217
Deferred revenue		—		2,385
NOL carryforwards		144		126,180
Tax credit carryforwards		—		12,686
Depreciation, amortization and impairment loss		—		496
Lease liability		—		2,113
Interest limitation		—		6,330
Other		—		1,279
Deferred tax assets		144		159,282
Valuation allowance for deferred tax assets		(96)		(153,171)
Deferred tax assets, net of valuation allowance		48		6,111
Deferred tax liabilities:
Investment in Partnership		(48)		—
Depreciation, amortization and impairment loss		—		(3,998)
Right-of-use assets		—		(2,113)
Net deferred tax assets	$	—	$	—

The Company’s NOL for federal and state income tax purposes at March 31, 2024 were as follows (in thousands):

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


Balance at March 31, 2022	$	1,898
Lapse of statute of limitations		(42)
Balance at March 31, 2023	$	1,856
Gross decrease due to Chapter 11 reorganization		(1,856)
Balance at March 31, 2024	$	—