Income Taxes (Tables)

12 Months Ended

Mar. 31, 2019

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)	2019			2018			2017
(Loss) income before income taxes
United States	$	(13,621	)	$	(11,926	)	$	(10,967	)
Foreign	678			325			(518		)
Total loss before income taxes	$	(12,943	)	$	(11,601	)	$	(11,485	)

Schedule of income tax (benefit) expense

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



(In thousands)	2019			2018			2017
Income tax expense (benefit)
Current:
Federal	$	54		$	66		$	10
State and local	(383		)	(446		)	5
Foreign	514			73			107
Deferred:
Federal	79			(2,985		)	96
State and local	277			41			10
Foreign	(320		)	—			8
Total income tax expense (benefit)	$	221		$	(3,251	)	$	236

Schedule of effective income tax rate reconciliation

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



(In thousands)	2019			2018			2017
Income tax benefit at the US Federal statutory rate	$	(2,718	)	$	(3,654	)	$	(4,019	)
Benefit for state taxes	(304		)	(642		)	(142		)
Impact of foreign operations	(310		)	38			158
Indefinite life assets	130			335			102
Officer life insurance	3			(5		)	(6		)
Change in valuation allowance	3,302			3,328			4,007
Change in liability for unrecognized tax benefits	(400		)	40			9
Impact of Tax Act, net	226			(3,287		)	—
Meals and entertainment	60			81			163
Equity	2			476			—
Global intangible low-taxed income	94			—			—
Other	136			39			(36		)
Total income tax expense (benefit)	$	221		$	(3,251	)	$	236

Schedule of deferred tax assets and liabilities

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



(In thousands)	2019			2018
Deferred tax assets:
Accrued liabilities	$	3,944		$	2,720
Allowance for doubtful accounts	120			143
Inventory valuation reserve	41			20
Federal losses and credit carryforwards	45,227			42,713
Foreign net operating losses	730			623
State losses and credit carryforwards	9,886			9,592
Deferred revenue	488			652
Goodwill and other intangible assets	—			286
Other	65			96
	60,501			56,845
Less: valuation allowance	(57,852		)	(54,260		)
Total	2,649			2,585

Deferred tax liabilities:
Property and equipment & software amortization	(361		)	(412		)
Goodwill and other intangible assets	(2,706		)	(2,277		)
Total	(3,067		)	(2,689		)
Total deferred tax liabilities	$	(418	)	$	(104	)

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)	2019			2018			2017
Balance at April 1	$	687		$	988		$	1,617
Reductions:
Relating to positions taken during prior year	—			(300		)	(604		)
Relating to lapse in statute	(107		)	(1		)	(25		)
Balance at March 31	$	580		$	687		$	988