Our income (loss) before income taxes and equity in net loss of affiliate consists of the following (in thousands):

	Year Ended February 28/29,
	2021			2020			2019
Domestic	$	(16,964	)	$	(31,381	)	$	24,359
Foreign		(3,632	)		813			2,488
Total income (loss) before income taxes and equity in net loss of affiliate	$	(20,596	)	$	(30,568	)	$	26,847

The components of income tax benefit (provision) consists of the following (in thousands):

	Year Ended February 28/29,
	2021			2020			2019
Current:
Federal	$	-		$	-		$	404
State		40			(273	)		(256	)
Foreign		(602	)		(1,629	)		(62	)
Total current		(562	)		(1,902	)		86
Deferred:
Federal		(59	)		(12,852	)		(2,621	)
State		(18	)		(10,645	)		(1,295	)
Foreign		78			4,945			4,442
Total deferred		1			(18,552	)		526
Income tax benefit (provision)	$	(561	)	$	(20,454	)	$	612

The income tax benefit (provision) differs from the amount obtained by applying the statutory rate as follows (in thousands):

	Year Ended February 28/29,
	2021			2020			2019
Income tax benefit (provision) at U.S. statutory federal rate	$	4,325		$	6,420		$	(5,638	)
State income tax benefit (provision), net of federal income tax effect		602			117			(1,412	)
Foreign taxes benefit (provision)		900			(50	)		(31	)
U.S. taxes on foreign income		(306	)		(571	)		-
Valuation allowance reductions (increases)		(5,825	)		(27,726	)		5,915
Research and other tax credits		1,322			2,594			1,658
Tax benefits on vested and exercised equity awards		(851	)		(606	)		758
Non-deductible expenses		(655	)		(697	)		(229	)
Other, net		(73	)		65			(409	)
Total income tax benefit (provision)	$	(561	)	$	(20,454	)	$	612

The components of net deferred income tax assets for income tax purposes are as follows (in thousands):

	February 28/29,
	2021			2020
Net operating loss carryforwards	$	27,194		$	22,500
Depreciation, amortization and impairments		(2,117	)		(5,353	)
Research and development credits		21,917			20,603
Stock-based compensation		2,944			2,556
Other tax credits		2,197			2,172
Capitalized research costs		2,638			3,389
ROU asset		(3,528	)		(5,174	)
Lease liabilities		5,472			7,455
Payroll and employee benefit accruals		1,984			2,077
Allowance for doubtful accounts		1,163			965
Other accrued liabilities		4,743			4,887
Convertible debt		(8,185	)		(9,477	)
Other, net		5,137			3,275
Gross deferred tax assets		61,559			49,875
Valuation allowance		(56,848	)		(45,560	)
Net deferred tax assets	$	4,711		$	4,315

Reported as:
Deferred tax assets	$	4,889		$	4,437
Deferred tax liabilities		(178	)		(122	)
Net deferred tax assets	$	4,711		$	4,315

As of February 28, 2021, we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to net operating losses and tax credits in domestic and certain foreign jurisdictions for which we cannot assert that they are more likely than not going to be realized. For fiscal year 2021, we increased the valuation allowance against our domestic and foreign net deferred tax assets by approximately $9.2 million and $2.1 million, respectively. For fiscal year 2020, we considered positive and negative evidence, in assessing our ability to realize our domestic net deferred tax assets and concluded that it is more likely than not that our domestic net deferred tax assets will not be realized. As such, we increased the valuation allowance against our domestic net deferred tax asset by approximately $33.0 million for fiscal year 2020. For fiscal year 2020, we increased the non-US valuation allowance against our net deferred tax assets related to net operating loss carryforwards by approximately $1.6 million. The amount of the net deferred tax assets considered realizable, however, could be adjusted in future periods in the event sufficient evidence is present to support a conclusion that it is more likely than not that all or a portion of our domestic deferred tax assets will be realized.

At February 28, 2021, we had net operating loss carryforwards of approximately $50.4 million, $48.4 million and $57.1 million for federal, state and foreign purposes, respectively, expiring at various dates through fiscal year 2039. Approximately $18.6 million of foreign net operating loss carryforwards do not expire. The federal net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code. If substantial changes in our ownership were to occur, there may be certain annual limitations on the amount of the NOL carryforwards that can be utilized.

As of February 28, 2021, we had R&D tax credit carryforwards of $10.4 million and $8.4 million for federal and state income tax purposes, respectively. The federal R&D tax credits expire at various dates through fiscal year 2040. A substantial portion of the state R&D tax credits have no expiration date. As of February 28, 2021, we had foreign tax credit carryforwards of $1.9 million for federal income tax purposes which expire beginning in fiscal year 2022 through fiscal year 2030.

We accounted for stock-based compensation pursuant to ASU 2016-09 and we have tax deductions on exercised stock options and vested restricted stock awards that did not exceed stock compensation expense amounts recognized for financial reporting purposes in fiscal 2021 and 2020. The gross shortfall was $4.1 million and $2.4 million in fiscal 2021 and 2020, respectively. In fiscal 2019, there were excess tax deductions of $2.9 million . Under ASU 2016-09, all excess tax benefits and tax deficiencies are recognized in the income statement as they occur. We follow ASC Topic 740, “Income Taxes,” which clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Management determined based on our evaluation of our income tax positions that we have uncertain tax benefit of $1.8 million, $2.2 million, and $3.2 million at February 28/29, 2021, 2020 and 2019, respectively, for which we have not yet recognized an income tax benefit for financial reporting purposes.

At February 28, 2021, we decreased the uncertain tax benefits related to certain foreign net operating loss carryforwards and domestic tax credits by $0.4 million. At February 29/28, 2020 and 2019, we decreased the uncertain tax benefits related to certain foreign net operating loss carry forwards and domestic tax credits by $1.0 million and $0.1 million, respectively. If total uncertain tax benefits were realized in a future period, it would result in a tax benefit of $1.8 million. As of February 28/29, 2021 and 2020, our liabilities for uncertain tax benefits were netted against our deferred tax assets on our consolidated balance sheet. It is reasonably possible the amount of unrecognized tax benefits could be reduced within the next 12 months by at least $0.1 million.

We recognize interest and/or penalties related to uncertain tax positions in income tax expense. No amounts of interest and/or penalties have been accrued as of February 29, 2020.

	Year Ended February 28/29,
	2020			2019			2018
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	2,172		$	3,201		$	1,029
Increases related to prior period tax positions		-			-			2,241
Decreases related to prior period tax positions		(422	)		(1,029	)		(69	)
Gross amounts of unrecognized tax benefits as of the end of the period	$	1,750		$	2,172		$	3,201

We file income tax returns in the U.S. federal jurisdiction, various U.S. states and Puerto Rico, Canada, Ireland, Italy, United Kingdom, the Netherlands, Brazil, Mexico, Japan, Hong Kong and New Zealand. Certain income tax returns for the years 2016 through 2019 remain open to examination by U.S. federal and state tax authorities. To the extent allowed by law, the tax authorities may have the right to examine prior periods in which net operating losses or tax credits were generated and carried forward, and to make adjustments up to the net operating loss or tax credit carryforward amount. Our tax returns in the foreign jurisdictions remain open for examination for varying years by jurisdiction with certain jurisdictions being open for examination from 2015 to the present.

For the fiscal years ended February 28/29, 2021 and 2020, we assert our intention to indefinitely reinvest foreign earnings in all our non-U.S. subsidiaries and accordingly, recorded no deferred income taxes on outside basis differences.