Income Taxes (Tables)

12 Months Ended

Mar. 31, 2023

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) from continuing operations before income taxes was as follows (in thousands):


	Year Ended March 31,
	2023		2022
U.S.	$	(101,458)	$	(32,904)
Non-U.S.	3,329		4,674
(Loss) income from continuing operations before income taxes	$	(98,129)	$	(28,230)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) from continuing operations was as follows (in thousands):


	Year Ended March 31,
	2023		2022
Current:
U.S. federal	$	(232)	$	362
U.S. state	124		(5)
Non-U.S.	509		1,444
Total current	401		1,801
Deferred:
U.S. federal	7,047		(6,881)
U.S. state	1,959		(940)
Non-U.S.	(48)		(6)
Total deferred	8,958		(7,827)
Income tax expense (benefit)	$	9,359	$	(6,026)

Schedule of Effective Income Tax Rate Reconciliation

Following is a reconciliation of the U.S. statutory federal income tax rate with our effective income tax rate for continuing operations:


	Year Ended March 31,
	2023		2022
U.S. statutory income tax rate	21.0	%	21.0	%
State tax, net of U.S. federal tax benefit	3.7		3.6
Non-U.S. income taxes	—		(0.8)
Nondeductible operating expenses	(1.5)		(0.5)
Foreign-derived intangible income deduction	—		—
Section 162(m) limitation	(0.1)		(5.4)
Non-deductible foreign employee stock compensation	(0.1)		(1.2)
Non-deductible acquisition related expenses	—		(1.8)
Research and development credit	0.2		2.3
Change in deferred tax measurement rate	—		0.2
Change in uncertain tax positions	(0.1)		(1.0)
Excess tax benefit or detriment from stock plans	(0.5)		5.4
Change in valuation allowance	(25.9)		(0.4)
Impairment of intangibles	(6.2)		—
Capital losses	—		—
Other	—		(0.1)
Effective income tax rate	(9.5)	%	21.3	%

Schedule of Deferred Tax Assets and Liabilities

Individually significant components of deferred income tax assets and liabilities were as follows (in thousands):


	As of March 31,
	2023		2022
Deferred income tax assets:
Accrued liabilities	$	2,773	$	5,828
Allowance for doubtful accounts	59		89
Inventory valuation	347		222
Capitalized indirect inventory costs	366		1,044
Stock-based compensation expense	715		895
Deferred rent	4,919		6,065

Deferred revenue	1,003		960
Interest expense	1,247		383
Net operating loss carryforward	13,979		2,194
Basis difference on long-lived assets	1,300		1,189
Section 174 capitalization	6,028		—
Credit carryforward	667		1,048
Capital losses	25,791		25,744
Other	301		290
Gross deferred income tax assets	59,495		45,951
Valuation allowance	(51,902)		(26,510)
Deferred income tax assets, net of valuation allowance	7,593		19,441
Deferred income tax liabilities:
Prepaid advertising	(29)		(273)
Other prepaids	(191)		(135)
Basis difference of long-lived assets	(2,631)		(4,740)

Deferred rent	(4,440)		(5,532)
Other	(1)		(1)
Deferred income tax liabilities	(7,292)		(10,681)
Net deferred income tax assets	$	301	$	8,760

Our deferred income tax assets and liabilities were recorded on our Consolidated Balance Sheets as follows (in thousands):


	As of March 31,
	2023		2022

Deferred income tax assets, non-current	$	554	$	8,760
Deferred income tax liabilities, non-current	(253)		—

Net deferred income tax assets (liabilities)	$	301	$	8,760

Summary of Income Tax Carryforwards

As of March 31, 2023, we had the following income tax carryforwards (in millions):


	Amount		Expires in
Net operating loss carryforwards


U.S. federal	$	50.6	Indefinite
U.S. state	$	47.7	2028 - 2043

U.S. state	$	11.5	Indefinite
Capital loss carryforwards
U.S federal and state	$	101.3	2025
Income tax credit carryforwards

U.S. federal	$	0.4	2043
U.S. state	$	0.4	Indefinite

Schedule of Reconciliatin of Gross Unrecognized Tax Benefits From Uncertain Tax Positions Roll Forward

Following is a reconciliation of gross unrecognized tax benefits from uncertain tax positions, excluding the impact of penalties and interest (in thousands):


	Year Ended March 31,
	2023		2022
Balance at beginning of period	$	1,782	$	2,374
Additions for tax positions taken in prior years	—		133
Reductions for tax positions taken in prior years	(26)		—
Additions for tax positions related to the current year	59		103
Lapses of statutes of limitations	—		—
Other	(108)		(828)
Balance at end of period	$	1,707	$	1,782