INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2023

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