Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.4.0.3
Income Taxes (Tables)
12 Months Ended
Mar. 31, 2016
Income Taxes  
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,

 

 

    

2016

    

2015

    

2014

 

Federal income tax at the statutory rate

 

$

(8,558)

 

$

(10,681)

 

$

(5,452)

 

State taxes, net of federal effect

    

 

(250)

    

 

(671)

    

 

(93)

 

Foreign taxes

 

 

109

 

 

33

 

 

134

 

R&D tax credit

 

 

(451)

 

 

(392)

 

 

37

 

Impact of state rate change

 

 

478

 

 

(2,627)

 

 

492

 

Warrant liability

 

 

 —

 

 

 —

 

 

(3)

 

Expiring NOL

 

 

3,058

 

 

3,865

 

 

1,543

 

Valuation allowance

 

 

5,596

 

 

10,583

 

 

3,614

 

Excess tax benefit—stock compensation

 

 

 —

 

 

 —

 

 

 —

 

Other

 

 

38

 

 

7

 

 

(52)

 

Income tax expense (benefit)

 

$

20

 

$

117

 

$

220

 

 

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, 2016 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

    

2016

    

2015

 

Deferred tax assets:

 

 

 

 

 

 

 

Inventories

 

$

2,903

 

$

3,323

 

Warranty reserve

 

 

616

 

 

1,217

 

Bad debt reserve

 

 

3,350

 

 

4,223

 

Deferred revenue

 

 

1,101

 

 

953

 

Net operating loss (“NOL”) carryforwards

 

 

226,007

 

 

218,826

 

Tax credit carryforwards

 

 

19,411

 

 

18,860

 

Depreciation, amortization and impairment loss

 

 

3,045

 

 

3,231

 

Other

 

 

4,212

 

 

5,154

 

Deferred tax assets

 

 

260,645

 

 

255,787

 

Valuation allowance for deferred tax assets

 

 

(252,349)

 

 

(246,753)

 

Deferred tax assets, net of valuation allowance

 

 

8,296

 

 

9,034

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Federal benefit of state taxes

 

 

(8,296)

 

 

(9,034)

 

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, 2016 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Expiration

 

 

    

Amount

    

Period

 

Federal NOL

 

$

652,385

 

2018 - 2035

 

State NOL

 

$

180,610

 

2016 - 2035

 

Federal tax credit carryforwards

 

$

9,940

 

2018 - 2035

 

State tax credit carryforwards

 

$

9,471

 

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, 2013

    

$

2,418

 

Gross decrease related to prior year tax positions

 

 

(93)

 

Gross increase related to prior year tax positions

 

 

1

 

Gross increase related to current year tax positions

 

 

115

 

Lapse of statute of limitations

 

 

 —

 

Balance at March 31, 2014

 

$

2,441

 

Gross increase related to prior year tax positions

 

 

11

 

Gross increase related to current year tax positions

 

 

112

 

Lapse of statute of limitations

 

 

 —

 

Balance at March 31, 2015

 

$

2,564

 

Gross increase related to prior year tax positions

 

 

13

 

Gross increase related to current year tax positions

 

 

124

 

Lapse of statute of limitations

 

 

 —

 

Balance at March 31, 2016

 

$

2,701