Note 14 - Income Taxes

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14. Income Taxes

The provision for income taxes is based upon loss before income taxes as follows (in thousands):

	Three Months Ended December 31, 2016			Nine Months Ended December 31, 2016
Domestic pre-tax loss	$	(1,461	)	$	(5,590	)
Foreign pre-tax loss		(743	)		(2,260	)
Total pre-tax loss	$	(2,204	)	$	(7,850	)

The components of the benefit from (provision for) income taxes are as follows (in thousands):

	Three Months Ended December 31, 2016			Nine Months Ended December 31, 2016
US	$	(2	)	$	(5	)
Foreign		37			148
Total benefit from provision for income taxes	$	35		$	143

The Company accounts for its income taxes in accordance with ASC

740,

Income Taxes. ASC

740

clarifies the accounting for uncertainty in income taxes and prescribes a recognition threshold, measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. Under ASC

740,

the Company is required to recognize in the financial statements the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. ASC

740

also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. The Company policy is to record interest and penalties related to unrecognized tax benefits in income tax expense. 

At

December

31,

2016,

there was

no

material increase in the liability for unrecognized tax benefits

nor

any accrued interest and penalties related to uncertain tax positions.

In addition, at

December

31,

2016,

the Company had approximately

$1.4

million of unrecognized tax benefits which was netted against deferred tax assets with a full valuation allowance. If these amounts are recognized, there will be no effect on the Company’s effective tax rate due to the full valuation allowance.

The Company’s Federal, state and foreign tax returns

may

be subject to examination by the tax authorities for fiscal year ended from

1998

to

2015

due to net operating losses and tax carryforwards unutilized from such years.