Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Schedule of Loss Before Income Taxes and Related Tax Benefit

The loss before income taxes and the related tax expense are as follows (in thousands):


	Year Ended March 31,
	2021		2020		2019
(Loss) income before income taxes:
United States	$	(40,663)	$	(29,509)	$	(11,246)
Switzerland	(201,673)		(239,666)		(247,445)
Bermuda	(12,310)		(19,054)		(14,357)
Other(1)	(152)		1		(27)
Total loss before income taxes	$	(254,798)	$	(288,228)	$	(273,075)

Current taxes:
United States	$	335	$	758	$	473
Switzerland	—		—		—
Bermuda	1		—		—
Other(1)	—		3		3
Total current tax expense	336		761		476
Deferred taxes:
United States	—		—		—
Switzerland	—		—		—
Bermuda	—		—		—
Other(1)	—		—		—
Total deferred tax expense	—		—		—
Total income tax expense	$	336	$	761	$	476

(1) Primarily United States state and local, Ireland and United Kingdom activity.

Schedule of Effective Income Tax Reconciliation

A reconciliation of income tax expense computed at the Bermuda statutory rate to income tax expense reflected in the consolidated statements of operations is as follows (dollars in thousands):


	Year Ended March 31,
	2021				2020				2019
Income tax expense at Bermuda statutory rate	$	—	—	%	$	—	—	%	$	—	—	%
Foreign rate differential(1)	(37,622)		14.77		(40,056)		13.90		(31,252)		11.44
Impact of changes in enacted income tax rates	—		—		(27,150)		9.42		—		—
Currency remeasurement effects on Swiss deferred tax assets	(13,742)		5.39		—		—		—		—
Officer’s non-deductible share-based compensation	9,590		(3.76)		—		—		—		—
R&D tax credits (net of uncertain tax positions)	(3,771)		1.48		(1,208)		0.42		—		—
Share-based compensation deferral adjustment	(4,364)		1.71		4,089		(1.42)		—		—
Valuation allowance	50,333		(19.75)		65,193		(22.62)		32,335		(11.83)

Other	(88)		0.03		(107)		0.04		(607)		0.22
Total income tax expense	$	336	(0.13)	%	$	761	(0.26)	%	$	476	(0.17)	%

(1) Primarily related to current tax on United States operations including permanent differences as well as operations in Switzerland and the United Kingdom at rates different than the Bermuda rate.

Schedule of Deferred Taxes

Significant components of the deferred tax assets and liabilities as of March 31, 2021 and 2020 are as follows (in thousands):


	March 31,
	2021		2020
Deferred tax assets:
Research tax credits	$	9,967	$	6,521
Net operating losses	119,701		84,694
Share-based compensation	12,649		8,573
Intangibles	58,830		52,922
Lease liability	2,317		2,633
Other	7,080		4,936
Subtotal	210,544		160,279
Valuation allowance	(207,858)		(157,525)
Deferred tax liabilities:
Depreciation	(651)		(409)
Right-of-use assets	(2,035)		(2,345)
Total deferred tax assets	$	—	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

Activity related to unrecognized tax benefits for the years ended March 31, 2021, 2020, and 2019 is as follows (in thousands):


	Year Ended March 31,
	2021		2020		2019
Beginning of period balance	$	3,177	$	—	$	—
Gross increases — prior period tax positions	—		2,067		—
Gross decreases — prior period tax positions	(128)		—		—
Gross increases — current period tax positions	1,355		1,110		—
End of period balance	$	4,404	$	3,177	$	—