Income Taxes (Tables)

12 Months Ended

Mar. 31, 2023

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)

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


	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	$	—	$	—

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

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