Income Taxes (Tables)

12 Months Ended

Mar. 31, 2020

Schedule of income from continuing operations before income taxes

For the year ended March 31, loss before income taxes consisted of the following:

(In thousands)		2020			2019			2018
(Loss) before income taxes
United States	$	(36,373	)	$	(13,621	)	$	(11,926	)
Foreign		2,507			678			325
Total loss before income taxes	$	(33,866	)	$	(12,943	)	$	(11,601	)

Schedule of income tax (benefit) expense

For the year ended March 31, income tax expense (benefit) consisted of the following:

(In thousands)		2020			2019			2018
Income tax expense (benefit)
Current:
Federal	$	59		$	54		$	66
State and local		21			(383	)		(446	)
Foreign		463			514			73
Deferred:
Federal		11			79			(2,985	)
State and local		7			277			41
Foreign		(360	)		(320	)		—
Total income tax expense (benefit)	$	201		$	221		$	(3,251	)

Schedule of effective income tax rate reconciliation

The following table presents the principal components of the difference between the effective tax rate to the U.S. federal statutory income tax rate for the years ended March 31:

(In thousands)	2020			2019			2018
Income tax benefit at the US Federal statutory rate	$	(7,112	)	$	(2,718	)	$	(3,654	)
Benefit for state taxes		(856	)		(304	)		(642	)
Impact of foreign operations		(514	)		(310	)		38
Indefinite life assets		19			130			335
Change in valuation allowance		8,406			3,302			3,328
Change in liability for unrecognized tax benefits		22			(400	)		40
Impact of Tax Act, net		—			226			(3,287	)
Share-based compensation		(312	)		2			476
Global intangible low-taxed income		460			94			—
Other		88			199			115
Total income tax expense (benefit)	$	201		$	221		$	(3,251	)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of March 31, are as follows:

(In thousands)	2020			2019
Deferred tax assets:
Accrued liabilities	$	3,059		$	3,944
Allowance for doubtful accounts		331			120
Inventory valuation reserve		—			41
Federal losses and credit carryforwards		47,218			44,811
Foreign losses and credit carryforwards		1,523			1,146
State losses and credit carryforwards		10,911			9,886
Deferred revenue		582			488
Property and equipment and software amortization		163			—
Operating lease liabilities		1,297			—
Goodwill and other intangible assets		4,914			—
Other		88			65
		70,086			60,501
Less: valuation allowance		(66,819	)		(57,852	)
Total		3,267			2,649

Deferred tax liabilities:
Operating lease right-of-use assets		(948	)		—
Property and equipment and software amortization		—			(361	)
Goodwill and other intangible assets		(2,426	)		(2,706	)
Other		(9	)		—
Total		(3,383	)		(3,067	)
Total deferred tax liabilities	$	(116	)	$	(418	)

Schedule of unrecognized tax benefits rollforward

We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31:

(In thousands)	2020			2019			2018
Balance at April 1	$	580		$	687		$	988
Reductions:
Relating to positions taken during prior year		—			—			(300	)
Relating to lapse in statute		(5	)		(107	)		(1	)
Balance at March 31	$	575		$	580		$	687