Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of pre-tax income (loss)
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