Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Loss before provision for income taxes consisted of the following for the years ended March 31, 2021 and 2020 (in thousands):


	Year Ended March 31,
	2021		2020
United States	$	(18,388)	$	(21,920)
Foreign		20		34
Loss before provision for income taxes	$	(18,368)	$	(21,886)

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


	Year Ended March 31,
	2021		2020
Federal income tax benefit at the statutory rate	$	(3,857)	$	(4,596)
State taxes, net of federal effect		(311)		(248)
Foreign taxes		9		2
Expiring NOLs and tax credits		14,086		6,273
Impact of state rate change		160		24
Valuation allowance		(10,154)		(1,792)
Shortfall in tax benefit—stock compensation		87		321
True-up		(2)		(2)
Other		1		30
Income tax expense	$	19	$	12

The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2021 and 2020 (in thousands):


	Year Ended March 31,
	2021		2020
Deferred tax assets:
Inventories	$	889	$	1,536
Warranty reserve		1,357		454
Bad debt reserve		58		139
Deferred revenue		1,434		1,684
Net operating loss (“NOL”) carryforwards		135,895		146,503
Tax credit carryforwards		13,988		15,227
Depreciation, amortization and impairment loss		1,237		1,652
Lease liability		1,146		1,263
Interest limitation		3,735		1,570
Other		1,032		998
Deferred tax assets		160,771		171,026
Valuation allowance for deferred tax assets		(159,671)		(169,825)
Deferred tax assets, net of valuation allowance		1,100		1,201
Deferred tax liabilities:
Right of use assets		(1,100)		(1,201)
Net deferred tax assets	$	—	$	—

The Company’s NOL and tax credit carryforwards for federal and state income tax purposes at March 31, 2021 were as follows (in thousands):


			Expiration
	Amount		Period
Federal NOL generated before April 1, 2018	$	543,781	2022 - 2038
Federal NOL generated after March 31, 2018	$	48,899	Indefinite
State NOL	$	162,967	2022 - 2039
Federal tax credit carryforwards	$	6,331	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, 2019	$	2,390
Gross increase related to prior year tax positions		—
Gross increase related to current year tax positions		—
Lapse of statute of limitations		(118)
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