Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.23.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2023
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, 2023, 2022 and 2021 is as follows (in thousands):
Year Ended March 31,
2023 2022 2021
U.S. $ (38,004) $ (31,489) $ (36,648)
Foreign 2,001  550  1,428 
Total $ (36,003) $ (30,939) $ (35,220)
Schedule of income tax provision
Income tax provision consists of the following (in thousands):
Year Ended March 31,
2023 2022 2021
Current tax expense
   Federal $ —  $ —  $ (76)
   State 70  477  339 
   Foreign 2,045  1,381  747 
      Total current tax expense 2,115  1,858  1,010 
Deferred tax expense
   Federal 23  9  (577)
   State 108  22  9 
   Foreign (306) (548) (203)
      Total deferred tax expense (benefit) (175) (517) (771)
Income tax provision $ 1,940  $ 1,341  $ 239 
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,
2023 2022 2021
Expense (benefit) at the federal statutory rate $ (7,560) $ (6,493) $ (7,396)
Equity compensation 1,945  195  345 
Permanent items 1,498  1,941  1,295 
Foreign taxes 586  1,761  (129)
State income taxes (373) (402) (969)
Valuation allowance 5,096  (4,899) 5,444 
Uncertain tax positions (3,791) (6,349) (6,695)
Tax reform —  —  — 
Credit monetization —  (2,100) — 
Expiration of attributes 5,734  18,345  9,862 
Research and development credits (1,582) (2,094) (1,829)
Other 387  1,436  311 
Income tax provision $ 1,940  $ 1,341  $ 239 
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,
2023 2022
Deferred tax assets
Loss carryforwards $ 56,675  $ 59,636 
Deferred revenue 28,389  29,485 
Capitalized research and development 23,949  16,289 
Tax credits 15,894  16,085 
Disallowed interest 13,162  12,296 
Other accruals and reserves not currently deductible for tax purposes 4,494  4,450 
Lease obligations 2,384  2,514 
Inventory 2,715  1,701 
Accrued warranty expense 495  447 
Acquired intangibles 961  853 
Gross deferred tax assets 149,118  143,756 
Valuation allowance (143,704) (138,365)
   Total deferred tax assets, net of valuation allowance $ 5,414  $ 5,391 
Deferred tax liabilities
Depreciation $ (2,009) $ (1,921)
Lease assets (2,128) (2,439)
Other (548) (1,048)
   Total deferred tax liabilities $ (4,685) $ (5,408)
           Net deferred tax assets (liabilities) $ 729  $ (17)
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,
2023 2022 2021
Beginning Balance $ 99,603  $ 101,119  $ 107,282 
Increase in balances related to tax positions in current period 2,778  2,785  2,560 
Increase in balances related to tax positions in prior period —  4,881  — 
Increase in balances related to acquisitions —  —  511 
Decrease in balances related to tax positions in prior period (817) (1,020) (522)
Decrease in balances due to lapse in statute of limitations (5,221) (8,162) (8,712)
Ending balance $ 96,343  $ 99,603  $ 101,119