Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Schedule of Income before Income Tax, Domestic and Foreign

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


	Year Ended March 31,
	2024		2023
U.S.	$	(90,124)	$	(101,458)
Non-U.S.	1,575		3,329
Loss from continuing operations before income taxes	$	(88,549)	$	(98,129)

Schedule of Components of Income Tax Expense (Benefit)

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


	Year Ended March 31,
	2024		2023
Current:
U.S. federal	$	990	$	(232)
U.S. state	1		124
Non-U.S.	371		509
Total current	1,362		401
Deferred:
U.S. federal	(4)		7,047
U.S. state	91		1,959
Non-U.S.	372		(48)
Total deferred	459		8,958
Income tax expense (benefit)	$	1,821	$	9,359

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,
	2024		2023
U.S. statutory income tax rate	21.0	%	21.0	%
State tax, net of U.S. federal tax benefit	3.6		3.7
Non-U.S. income taxes	0.2		—
Nondeductible operating expenses	(0.3)		(1.5)

Section 162(m) limitation	—		(0.1)
Non-deductible foreign employee stock compensation	(0.3)		(0.1)

Research and development credit	0.1		0.2
Change in deferred tax measurement rate	(0.1)		—
Change in uncertain tax positions	(0.6)		(0.1)
Excess tax benefit or detriment from stock plans	(0.8)		(0.5)
Change in valuation allowance	(25.5)		(25.9)
Impairment of intangibles	—		(6.2)

Other	0.6		—
Effective income tax rate	(2.1)	%	(9.5)	%

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,
	2024		2023
Deferred income tax assets:
Accrued liabilities	$	2,298	$	2,773
Allowance for doubtful accounts	18		59
Inventory valuation	218		347
Capitalized indirect inventory costs	357		366
Stock-based compensation expense	380		715
Deferred rent	3,849		4,919

Deferred revenue	965		1,003
Interest expense	2,992		1,247
Net operating loss carryforward	19,416		13,979
Basis difference on long-lived assets	7,693		1,300
Section 174 capitalization	11,031		6,028
Credit carryforward	713		667
Capital losses	25,091		25,791
Other	253		301
Gross deferred income tax assets	75,274		59,495
Valuation allowance	(74,371)		(51,902)
Deferred income tax assets, net of valuation allowance	903		7,593
Deferred income tax liabilities:
Prepaid advertising	(27)		(29)
Other prepaids	(114)		(191)
Basis difference of long-lived assets	(845)		(2,631)

Deferred rent	—		(4,440)
Other	(16)		(1)
Deferred income tax liabilities	(1,002)		(7,292)
Net deferred income tax assets (liabilities)	$	(99)	$	301

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


	As of March 31,
	2024		2023

Deferred income tax assets, non-current	$	—	$	554
Deferred income tax liabilities, non-current	(99)		(253)

Net deferred income tax assets (liabilities)	$	(99)	$	301

Summary of Income Tax Carryforwards

As of March 31, 2024, we had the following income tax carryforwards (in millions):


	Amount		Expires in
Net operating loss carryforwards


U.S. federal	$	72.1	Indefinite
U.S. state	$	62.6	2028 - 2044

U.S. state	$	17.0	Indefinite
Capital loss carryforwards
U.S federal and state	$	101.4	2025 - 2029
Income tax credit carryforwards

U.S. federal	$	0.5	2043 - 2044
U.S. state	$	0.4	Indefinite

Schedule of Reconciliation 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,
	2024		2023
Balance at beginning of period	$	1,707	$	1,782
Additions for tax positions taken in prior years	363		—
Reductions for tax positions taken in prior years	(4)		(26)
Additions for tax positions related to the current year	7		59

Other	—		(108)
Balance at end of period	$	2,073	$	1,707