INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2022

Pre-tax loss reflected in the consolidated statements of operations for the years ended March 31, 2022, 2021 and 2020 is as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
U.S.	$	(31,489)	$	(36,648)	$	(6,318)
Foreign	550		1,428		1,911
Total	$	(30,939)	$	(35,220)	$	(4,407)

Schedule of income tax provision

Income tax provision consists of the following (in thousands):


	Year Ended March 31,
	2022		2021		2020
Current tax expense
Federal	$	—	$	(76)	$	(115)
State	477		339		106
Foreign	1,381		747		1,271
Total current tax expense	1,858		1,010		1,262
Deferred tax expense
Federal	9		(577)		—
State	22		9		33
Foreign	(548)		(203)		(492)
Total deferred tax expense (benefit)	(517)		(771)		(459)
Income tax provision	$	1,341	$	239	$	803

Schedule of federal income tax rate reconciliation

The income tax provision differs from the amount computed by applying the federal statutory rate of 21% to loss before income taxes as follows (in thousands):


	For the year ended March 31,
	2022		2021		2020
Expense at the federal statutory rate	$	(6,493)	$	(7,396)	$	(925)
Expiration of attributes	18,345		9,862		11,679
Valuation allowance	(4,899)		5,444		(2,639)
Permanent items	1,941		1,295		914
Equity compensation	195		345		280
Debt forgiveness	(2,100)		—		—

Foreign taxes	1,761		(129)		1,612
State income taxes	(402)		(969)		(20)
Research and development credits	(2,094)		(1,829)		(1,566)
Uncertain tax positions	(6,349)		(6,695)		(8,654)
Other	1,436		311		122
Income tax provision	$	1,341	$	239	$	803

Schedule of components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities are as follows (in thousands):


	As of March 31,
	2022		2021
Deferred tax assets
Loss carryforwards	$	59,636	$	76,153
Deferred revenue	29,485		21,839
Tax credits	16,085		16,574
Disallowed interest	12,296		12,132
Other accruals and reserves not currently deductible for tax purposes	4,450		8,192
Capitalized research and development	16,289		7,811
Lease obligations	2,514		1,747
Inventory	1,701		1,374

Accrued warranty expense	447		569
Acquired intangibles	853		454
Gross deferred tax assets	143,756		146,845
Valuation allowance	(138,365)		(143,263)
Total deferred tax assets, net of valuation allowance	$	5,391	$	3,582
Deferred tax liabilities
Depreciation	$	(1,921)	$	(1,440)
Lease assets	(2,439)		(1,670)
Other	(1,048)		(1,013)
Total deferred tax liabilities	$	(5,408)	$	(4,123)
Net deferred tax assets (liabilities)	$	(17)	$	(541)

Reconciliation of gross unrecognized tax benefits

A reconciliation of the gross unrecognized tax benefits is as follows (in thousands):


	For the year ended March 31,
	2022		2021		2020
Beginning Balance	$	101,119	$	107,282	$	116,032
Increase in balances related to tax positions in current period	2,785		2,560		2,275
Increase in balances related to tax positions in prior period	4,881		—		144
Increase in balances related to acquisitions	—		511		—
Decrease in balances related to tax positions in prior period	(1,020)		(522)		(4)
Decrease in balances due to lapse in statute of limitations	(8,162)		(8,712)		(11,165)

Ending balance	$	99,603	$	101,119	$	107,282