Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Income Taxes

Schedule of components of income tax benefit (expense)

Income tax benefit (expense) for the years ended March 31, 2013, 2012 and 2011 consisted of:

	2013			2012			2011
	(in thousands)
Current:
Federal	$	(53	)	$	(66	)	$	17
State	(21		)	(47		)	(2		)
Total current	(74		)	(113		)	15
Deferred:
Federal	1,894			859			492
State	201			33			60
Total deferred	2,095			892			552
Income tax benefit (expense)	$	2,021		$	779		$	567

Schedule of reconciliation of the amount of income taxes computed at the federal statutory rate to the amount reflected in consolidated statements of operations

The following table reconciles the amount of income taxes computed at the federal statutory rate of 34%, for all periods presented, to the amount reflected in the Company’s consolidated statements of operations for the years ended March 31, 2013, 2012 and 2011:

	2013			2012			2011
	(in thousands)
Tax provision at federal statutory income tax rate	$	(744	)	$	(970	)	$	(395	)
State income taxes benefit (expense), net of federal income tax effect	(130		)	(68		)	38
Decrease in valuation allowance for utilization of deferred tax assets	1,082			1,100			357
Reduction in valuation allowance	1,912			892			552
Stock based compensation	(201		)	(97		)	16
Other, net	102			(78		)	(1		)
Income tax benefit (expense)	$	2,021		$	779		$	567

Schedule of tax effects of temporary differences related to various assets, liabilities and carry forwards that give rise to deferred tax assets and deferred tax liabilities

The tax effects of temporary differences related to various assets, liabilities and carry forwards that give rise to deferred tax assets and deferred tax liabilities as of March 31, 2013 and 2012 are as follows:

	2013			2012
	(in thousands)
Deferred tax assets:
Net operating loss carry forwards	$	3,674		$	4,546
Compensation accrual	134			322
Inventory differences	14			41
Tax credit carry forwards	156			115
Other	12			11
Gross deferred tax assets	3,990			5,035
Less valuation allowance	—			(2,994		)
Net deferred tax assets	3,990			2,041
Deferred tax liability: Depreciation and amortization	(451		)	(597		)
Net deferred tax assets	$	3,539		$	1,444

Schedule of net operating loss carry forwards and tax credit carry forwards available to offset future federal income tax

At March 31, 2013, the Company has net operating loss carry forwards and tax credit carry forwards available to offset future federal income tax as follows (in thousands):

Expires March 31,	Net Operating Losses		Research and Experimentation Tax Credits
2020	0		7
2021	126		2
2022	3,161		—
2023	1,864		1
2026	159		—
2027	2,665		1
2028	1,612		—
2031	389		—
	$	9,976	$	11

Schedule of open tax years and jurisdictions that the Company used in its evaluation of tax positions

The following represents the open tax years and jurisdictions that the Company used in its evaluation of tax positions:

Open tax years ending March 31,	Jurisdiction
2010 - 2013	U.S. federal
2010 - 2013	State of Hawaii
2009 - 2013	State of California