Note 11 - Income Taxes

6 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11.

Income Taxes

The Company recorded income tax expense of $

0.2

million and $

0.4

 million in the 

three

and

six

month periods ended

September 30, 2020

.  

The Company recorded income tax benefits of

$0.3

 million and

$0.1

 million in the

three

and

six

 months ended 

September 30, 2019

Accounting for income taxes requires a

two

-step approach to recognizing and measuring uncertain tax positions.  The

first

step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than

not

the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any.  The

second

step is to measure the tax benefit as the largest amount that is more than

50%

likely to be realized upon ultimate settlement.  The Company re-evaluates these uncertain tax positions on a quarterly basis.  The evaluation is based on factors including, but

not

limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity.  Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision.  The Company did

not

identify any uncertain tax positions in the 

six

months ended 

September 30, 2020

and did

not

have any gross unrecognized tax benefits as of

March 31, 2020

.