5. INCOME TAXES	6 Months Ended
Sep. 30, 2017
INCOME TAXES
NOTE 5-INCOME TAXES	NOTE 5—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both September 30, 2017 and March 31, 2017. The long-term portion at September 30, 2017 and March 31, 2017 was $249,000 and $244,000, respectively, of which the timing of the resolution is uncertain. As of September 30, 2017, $2.6 million of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of September 30, 2017 and March 31, 2017, the Company’s net deferred tax assets of $10.8 million and $8.9 million, respectively, were subject to a full valuation allowance. Management believes that within the next twelve months the Company will have no reduction in uncertain tax benefits, including interest and penalties, related to positions taken with respect to credits and loss carryforwards on previously filed tax returns. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations. The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2013 through 2017 remain open to examination by federal tax authorities, and fiscal years 2011 through 2017 remain open to examination by California tax authorities. The Company’s estimated annual effective income tax rate was approximately (11.8%) and 23.5% as of September 30, 2017 and 2016, respectively. The annual effective tax rates as of September 30, 2017 and 2016 vary from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses, and the foreign tax differential.

NOTE 5—INCOME TAXES

The current portion of the Company’s unrecognized tax benefits was $0 at both September 30, 2017 and March 31, 2017. The long-term portion at September 30, 2017 and March 31, 2017 was $249,000 and $244,000, respectively, of which the timing of the resolution is uncertain. As of September 30, 2017, $2.6 million of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of September 30, 2017 and March 31, 2017, the Company’s net deferred tax assets of $10.8 million and $8.9 million, respectively, were subject to a full valuation allowance.

Management believes that within the next twelve months the Company will have no reduction in uncertain tax benefits, including interest and penalties, related to positions taken with respect to credits and loss carryforwards on previously filed tax returns.

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations.

The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2013 through 2017 remain open to examination by federal tax authorities, and fiscal years 2011 through 2017 remain open to examination by California tax authorities.

The Company’s estimated annual effective income tax rate was approximately (11.8%) and 23.5% as of September 30, 2017 and 2016, respectively. The annual effective tax rates as of September 30, 2017 and 2016 vary from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses, and the foreign tax differential.