INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) attributable to (loss) income from continuing operations consists of (in thousands):


	Year Ended March 31,
	2021		2020
Current:
Federal	$	(3,330)	$	43
State	130		(8)
Foreign	39		—
Total current	(3,161)		35
Deferred:
Federal	91		(481)
State	(317)		(98)
Total deferred	(226)		(579)

Total	$	(3,387)	$	(544)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense attributable to (loss) income from continuing operations differed from the amounts computed by applying the U.S. Federal income tax rate of 21% to pretax (loss) income from continuing operations as follows (in thousands):


	Year Ended March 31,
	2021				2020
Expected Federal income tax (benefit)/ expense U.S. statutory rate	$	(2,472)	21.0	%	$	551	21.0	%
State income taxes, net of federal benefit	(271)		2.3	%	(519)		-19.8	%
Nontaxable cancellation of debt income	—		0.0	%	(1,331)		-50.7	%
Micro-captive insurance benefit	(217)		1.8	%	(172)		-6.6	%
Change in valuation allowance	621		-5.3	%	(7,789)		-296.8	%
Income attributable to minority interest - Contrail	247		-2.1	%	(325)		-12.4	%
Write-off Delphax tax attributes	—		0.0	%	9,353		356.4	%
Acquired Net Operating Loss ("NOL") carrybacks; CARES Act	—		0.0	%	(363)		-13.8	%
NOL Carryback - Rate Differential	(1,468)		12.5	%	—		0.0	%
Other differences, net	173		-1.4	%	51		1.9	%
Income tax benefit	$	(3,387)	28.8	%	$	(544)	-20.7	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were comprised of the following (in thousands):


	2021		2020
Net operating loss & attribute carryforwards	$	4,094	$	3,524

Unrealized losses on investments	1,504		1,693
Investment in foreign subsidiaries	1,331		1,369
Investment in partnerships	821		840

Lease liabilities	1,999		1,909
Other deferred tax assets	1,991		1,019
Total deferred tax assets	11,740		10,354

Bargain purchase gain	(470)		(385)
Property and equipment	(1,184)		(485)
Right-of-use assets	(1,838)		(1,791)
Capital gain deferment	(1,782)		(1,700)
Other deferred tax liabilities	(35)		(167)
Total deferred tax liabilities	(5,309)		(4,528)

Net deferred tax asset	$	6,431	$	5,826

Less valuation allowance	(7,026)		(6,405)

Net deferred tax liability	$	(595)	$	(579)