Income Taxes (Tables)

12 Months Ended

Mar. 31, 2018

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)	2018			2017			2016
Loss before income taxes
United States	$	(11,926	)	$	(10,967	)	$	(3,874	)
Foreign	325			(518		)	115
Total loss before income taxes	$	(11,601	)	$	(11,485	)	$	(3,759	)

Schedule of income tax (benefit) expense

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



(In thousands)	2018			2017		2016
Income tax expense (benefit)
Current:
Federal	$	66		$	10	$	(2	)
State and local	(446		)	5		(52		)
Foreign	73			107		59
Deferred:
Federal	(2,985		)	96		19
State and local	41			10		10
Foreign	—			8		(28		)
Total income tax expense (benefit)	$	(3,251	)	$	236	$	6

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)	2018			2017			2016
Income tax benefit at the US Federal statutory rate	$	(3,654	)	$	(4,019	)	$	(1,317	)
Benefit for state taxes	(642		)	(142		)	(54		)
Impact of foreign operations	38			158			(9		)
Indefinite life assets	335			102			26
Officer life insurance	(5		)	(6		)	(197		)
Change in valuation allowance	3,328			4,007			1,555
Change in liability for unrecognized tax benefits	40			9			(29		)
Impact of Tax Act, net	(3,287		)	—			—
Meals and entertainment	81			163			100
Equity	476			—			—
Other	39			(36		)	(69		)
Total income tax expense (benefit)	$	(3,251	)	$	236		$	6

Schedule of deferred tax assets and liabilities

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



(In thousands)	2018			2017
Deferred tax assets:
Accrued liabilities	$	2,720		$	3,892
Allowance for doubtful accounts	143			126
Inventory valuation reserve	20			38
Federal losses and credit carryforwards	42,713			64,953
Foreign net operating losses	623			392
State losses and credit carryforwards	9,592			9,474
Deferred revenue	652			704
Goodwill and other intangible assets	286			1,332
Other	96			152
	56,845			81,063
Less: valuation allowance	(54,260		)	(80,013		)
Total	2,585			1,050
Deferred tax liabilities:
Property and equipment & software amortization	(412		)	(772		)
Indefinite-lived goodwill & intangible assets	(2,277		)	(3,459		)
Total	(2,689		)	(4,231		)
Total deferred tax liabilities	$	(104	)	$	(3,181	)

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)	2018			2017			2016
Balance at April 1	$	988		$	1,617		$	1,755
Reductions:
Relating to tax settlements	—			—			(85		)
Relating to positions taken during prior year	(300		)	(604		)	—
Relating to lapse in statute	(1		)	(25		)	(53		)
Balance at March 31	$	687		$	988		$	1,617