Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

Schedule of income from continuing operations before income taxes

For the year ended March 31, loss before income taxes consisted of the following:



(In thousands)	2017			2016			2015
Loss before income taxes
United States	$	(10,967	)	$	(3,874	)	$	(12,697	)
Foreign	(518		)	115			146
Total loss before income taxes	$	(11,485	)	$	(3,759	)	$	(12,551	)

Schedule of income tax (benefit) expense

For the year ended March 31, income tax expense (benefit) consisted of the following:



(In thousands)	2017		2016			2015
Income tax expense (benefit)
Current:
Federal	$	10	$	(2	)	$	25
State and local	5		(52		)	(798		)
Foreign	107		59			90
Deferred:
Federal	96		19			(206		)
State and local	10		10			(141		)
Foreign	8		(28		)	(24		)
Total income tax expense (benefit)	$	236	$	6		$	(1,054	)

Schedule of effective income tax rate reconciliation

The following table presents the principal components of the difference between the effective tax rate for continuing operations to the U.S. federal statutory income tax rate for the years ended March 31:



(In thousands)	2017			2016			2015
Income tax benefit at the statutory rate of 35%	$	(4,019	)	$	(1,317	)	$	(4,405	)
Benefit for state taxes	(142		)	(54		)	(172		)
Impact of foreign operations	158			(9		)	11
Indefinite life assets	102			26			—
Officer life insurance	(6		)	(197		)	(20		)
Change in valuation allowance	4,007			1,555			4,241
Change in liability for unrecognized tax benefits	9			(29		)	(857		)
Meals and entertainment	163			100			102
Other	(36		)	(69		)	46
Total income tax expense (benefit)	$	236		$	6		$	(1,054	)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of March 31, are as follows:



(In thousands)	2017			2016
Deferred tax assets:
Accrued liabilities	$	3,892		$	5,567
Allowance for doubtful accounts	126			198
Inventory valuation reserve	38			54
Federal losses and credit carryforwards	64,953			59,855
Foreign net operating losses	392			295
State losses and credit carryforwards	9,474			9,591
Deferred revenue	704			423
Goodwill and other intangible assets	1,332			2,281
Other	152			365
	81,063			78,629
Less: valuation allowance	(80,013		)	(77,846		)
Total	1,050			783
Deferred tax liabilities:
Property and equipment & software amortization	(772		)	(478		)
Indefinite-lived goodwill & intangible assets	(3,459		)	(3,352		)
Total	(4,231		)	(3,830		)
Total deferred tax liabilities	$	(3,181	)	$	(3,047	)

Schedule of unrecognized tax benefits rollforward

We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31:



(In thousands)	2017			2016			2015
Balance at April 1	$	1,617		$	1,755		$	2,568
Reductions:
Relating to tax settlements	—			(85		)	—
Relating to positions taken during prior year	(604		)	—			(204		)
Relating to lapse in statute	(25		)	(53		)	(609		)
Balance at March 31	$	988		$	1,617		$	1,755