INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2023

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,
	2023		2022
Current:
Federal	$	46	$	1,358
State	150		44
Foreign	845		134
Total current	1,041		1,536
Deferred:
Federal	29		(507)
State	(442)		140
Foreign	(196)		—
Total deferred	(609)		(367)

Total	$	432	$	1,169

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense attributable to income (loss) from continuing operations differed from the amounts computed by applying the U.S. Federal income tax rate of 21.0% to pretax income (loss) from continuing operations as follows (in thousands):


	Year Ended March 31,
	2023				2022
Expected Federal income tax expense (benefit) U.S. statutory rate	$	(2,384)	21.0	%	$	2,813	21.0	%
State income taxes, net of federal benefit	(558)		4.9	%	177		1.3	%
Permanent Items	28		-0.2	%	(165)		-1.2	%
Micro-captive insurance benefit	(274)		2.4	%	(233)		-1.8	%
Change in valuation allowance	3,149		-27.7	%	(2,251)		-16.8	%
Income attributable to minority interest - Contrail	190		-1.7	%	(174)		-1.3	%
Write-off Delphax Tech SAS	—		0.0	%	2,225		16.6	%
PPP Loan Forgiveness	—		0.0	%	(1,650)		-12.3	%

Other differences, net	281		-2.5	%	427		3.2	%
Income tax expense (benefit)	$	432	-3.8	%	$	1,169	8.7	%

Schedule of Deferred Tax Assets and Liabilities

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


	2023		2022
Net operating loss & attribute carryforwards	$	5,968	$	3,794
Unrealized losses on investments	1,740		1,669

Inventory reserve	851		682
Accrued vacation	421		327
Foreign tax credit	391		263
Accounts and notes receivable	182		235
Interest rate swaps	77		138
Investment in partnerships	1,723		671
Lease liabilities	3,000		1,691
Other deferred tax assets	115		286
Total deferred tax assets	14,468		9,756

Bargain purchase gain	(191)		(447)
Property and equipment	(1,804)		(1,532)
Right-of-use assets	(2,815)		(1,511)
Capital gain deferment	(1,799)		(1,696)
Foreign intangible assets	(2,159)		(2,572)
Other deferred tax liabilities	(110)		(36)
Total deferred tax liabilities	(8,878)		(7,794)

Net deferred tax assets	$	5,590	$	1,962

Less valuation allowance	(8,007)		(4,774)

Net deferred tax liabilities	$	(2,417)	$	(2,812)