Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

Schedule of Loss Before Income Taxes and Related Tax Benefit

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


	Year Ended March 31,
	2022		2021		2020
(Loss) income before income taxes:
United States	$	45,446	$	(40,663)	$	(29,509)
Switzerland	(237,903)		(201,673)		(239,666)
Bermuda	(8,415)		(12,310)		(19,054)
Other(1)	(61)		(152)		1
Total loss before income taxes	$	(200,933)	$	(254,798)	$	(288,228)

Current taxes:
United States	$	5,048	$	335	$	758
Switzerland	—		—		—
Bermuda	—		1		—
Other(1)	—		—		3
Total current tax expense	5,048		336		761
Deferred taxes:
United States	—		—		—
Switzerland	—		—		—
Bermuda	—		—		—
Other(1)	—		—		—
Total deferred tax expense	—		—		—
Total income tax expense	$	5,048	$	336	$	761

(1) Primarily 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,
	2022				2021				2020
Income tax expense at Bermuda statutory rate	$	—	—	%	$	—	—	%	$	—	—	%
Foreign rate differential(1)	(25,720)		12.80	%	(37,622)		14.77	%	(40,056)		13.90	%
Impact of changes in enacted income tax rates	—		—	%	—		—	%	(27,150)		9.42	%
Currency remeasurement effects on Swiss deferred tax assets	(3,045)		1.52	%	(13,742)		5.39	%	—		—	%
Officer’s non-deductible share-based compensation	—		—	%	9,590		(3.76)	%	—		—	%
R&D tax credits	(2,819)		1.40	%	(3,771)		1.48	%	(1,208)		0.42	%
Share-based compensation deferral adjustment	—		—	%	(4,364)		1.71	%	4,089		(1.42)	%
Valuation allowance	36,331		(18.08)	%	50,333		(19.75)	%	65,193		(22.62)	%

Other	301		(0.15)	%	(88)		0.03	%	(107)		0.04	%
Total income tax expense	$	5,048	(2.51)	%	$	336	(0.13)	%	$	761	(0.26)	%

(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, 2022 and 2021 are as follows (in thousands):


	March 31,
	2022		2021
Deferred tax assets:
Research tax credits	$	7,345	$	9,967
Net operating losses	135,916		119,701
Share-based compensation	11,418		12,649
Intangibles	79,231		58,830
Lease liability	2,009		2,317
Other	10,536		7,080
Subtotal	246,455		210,544
Valuation allowance	(244,188)		(207,858)
Deferred tax assets, net of valuation allowance	2,267		2,686
Deferred tax liabilities:
Depreciation	(526)		(651)
Right-of-use assets	(1,741)		(2,035)
Net deferred tax assets	$	—	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

Activity related to unrecognized tax benefits for the years ended March 31, 2022, 2021, and 2020 is as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
Beginning of period balance	$	4,404	$	3,177	$	—
Gross increases — prior period tax positions	—		—		2,067
Gross decreases — prior period tax positions	(235)		(128)		—
Gross increases — current period tax positions	1,050		1,355		1,110
End of period balance	$	5,219	$	4,404	$	3,177