Income Taxes

9 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

A reconciliation of the income tax expense at the statutory rate to the provision for income taxes is as follows:

	Quarter ended						Nine months ended
	December 31,						December 31,
	2019			2018			2019			2018
Income tax expense at statutory rate	$	—		$	—		$	—		$	—
Foreign tax rate differential		(1,436	)		(1,328	)		(3,035	)		(3,812	)
Increase in valuation allowance against deferred    tax assets		1,450			1,339			3,076			3,845
Provision for income tax	$	14		$	11		$	41		$	33

Significant components of deferred tax are as follows:

	December 31, 2019			March 31, 2019
Provisions and reserves	$	1,484		$	1,442
Fixed asset basis difference		44			34
Operating lease liability		3,994			—
Net operating loss carry forwards		20,313			17,330
Gross deferred tax assets	$	25,835		$	18,806
Operating lease right-of-use assets	$	(3,994	)	$	—
Net deferred tax asset	$	21,841		$	18,806
Valuation allowance		(21,277	)		(18,201	)
Total	$	564		$	605

The balance sheet classification of deferred tax is as follows:

	December 31, 2019		March 31, 2019
Net noncurrent deferred tax assets	$	564	$	605
Total	$	564	$	605

In connection with the sale and leaseback transaction of the Biocampus facility that was completed in March 2018, the Company has agreed to transfer tax allowances related to certain other property, plant and equipment to the purchaser of the facility. An election to effect the transfer of these allowances to the purchaser has been made, but due to uncertainty regarding whether the election will be effective, the tax effect of the transfer of the allowances has not been recorded in the financial statements as at December 31, 2019. If the transfer of the allowances was regarded as being effective at December 31, 2019, the financial statements would reflect an additional deferred tax expense of $1,004 and an equivalent deferred tax liability. The Company will continue to monitor the position regarding the effectiveness of the election to transfer the allowances in order to determine whether the deferred tax liability should be recorded.