Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of pre-tax income (loss)
Pre-tax loss reflected in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2026 and 2025 is as follows (in thousands):
Year Ended March 31,
2026 2025
U.S. $ (98,392) $ (112,416)
Foreign (1,646) (1,854)
Total $ (100,038) $ (114,270)
Schedule of income tax provision
Income tax provision consists of the following (in thousands):
Year Ended March 31,
2026 2025
Current tax expense
   Federal $ —  $ — 
   State 19  36 
   Foreign 1,312  741 
      Total current tax expense 1,331  777 
Deferred tax expense (benefit)
   Federal 19  20 
   State 7  37 
   Foreign (349) (13)
      Total deferred tax expense (benefit) (323) 44 
Income tax provision $ 1,008  $ 821 
Schedule of income taxes paid, net of refunds received
Income taxes paid, net of refunds received (in thousands):
For the year ended March 31,
2026
Federal $ — 
State (52)
Foreign
Belgium 116 
France 77 
India 149 
Israel 449 
Italy 93 
Malaysia 79 
Mexico 80 
United Kingdom 103 
Other Foreign Jurisdictions 100 
Total Foreign 1,246 
Total Income Taxes paid, net of refunds received $ 1,194 
Schedule of federal income tax rate reconciliation A reconciliation of the federal statutory income tax rate of 21% to the effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended March 31, 2026 was as follows (in thousands, except percentages):
For the year ended March 31,
2026
At Statutory Rate $ (21,008) 21.0  %
State Income Taxes, net of Federal Effect 1,733  (1.7) %
Change in Valuation Allowance (7,131) 7.1  %
Nontaxable or Nondeductible Items
Loss on Debt Extinguishment 12,526  (12.5) %
Warrants Mark-to-Market (2,376) 2.4  %
Legal Services 2,368  (2.4) %
Other Nondeductible Items 1,477  (1.5) %
Changes in Tax Laws or Rates —  —  %
Tax Credits
R&D Credits 4,614  (4.6) %
Foreign Tax Credit 11,915  (11.9) %
Cross-Border Tax Laws
Subpart F Inclusion 281  (0.3) %
Worldwide Changes in UTB (4,683) 4.7  %
Other 519  (0.5) %
Foreign Tax Effects
Other Foreign Jurisdictions 773  (0.8) %
Total Tax Expense $ 1,008  (1.0) %

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,
2026 2025
Expense (benefit) at the federal statutory rate $ (21,008) 21.0  % $ (24,122) 21.1  %
Equity compensation 188  (0.2) % 580  (0.5) %
Permanent items 17,351  (17.3) % 309  (0.3) %
Foreign taxes 1,135  (1.1) % 299  (0.3) %
State income taxes 1,733  (1.7) % 36  —  %
Valuation allowance (7,152) 7.1  % 13,907  (12.2) %
Uncertain tax positions (4,722) 4.7  % (6,672) 5.8  %
Expiration of attributes 16,963  (17.0) % 8,427  (7.4) %
Research and development credits (367) 0.4  % (844) 0.7  %
Warrant fair value adjustments (2,376) 2.4  % 9,507  (8.3) %
Other (737) 0.8  % (606) 0.5  %
Income tax provision $ 1,008  (1.0) % $ 821  (0.7) %
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,
2026 2025
Deferred tax assets
Loss carryforwards $ 71,533  $ 61,466 
Deferred revenue 23,865  25,895 
Capitalized research and development 23,094  28,824 
Tax credits 2,817  15,517 
Disallowed interest 22,890  19,696 
Other accruals and reserves not currently deductible for tax purposes 3,651  3,913 
Lease obligations 1,853  2,016 
Inventory 4,537  3,779 
Acquired intangibles 989  1,285 
Accrued warranty expense 178  277 
Depreciation 1,491  1,755 
Gross deferred tax assets 156,898  164,423 
Valuation allowance (154,616) (161,730)
   Total deferred tax assets, net of valuation allowance 2,282  2,693 
Deferred tax liabilities
Lease assets (1,529) (1,711)
Other 290  (323)
   Total deferred tax liabilities (1,239) (2,034)
           Net deferred tax assets (liabilities) $ 1,043  $ 659 
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,
2026 2025
Beginning Balance $ 81,678  $ 88,341 
Increase in balances related to tax positions in current period 1,050  1,558 
Increase (decrease) in balances related to tax positions in prior period 40  (12)
Decrease in balances due to lapse in statute of limitations (6,179) (8,209)
Ending balance $ 76,589  $ 81,678