Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of income from continuing operations before income taxes

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

(In thousands)		2024		2023		2022
Income before income taxes
United States	$	12,492	$	14,526	$	1,598
Foreign		8,192		1,238		4,913
Total income before income taxes	$	20,684	$	15,764	$	6,511

Schedule of income tax (benefit) expense

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

(In thousands)		2024			2023			2022
Income tax (benefit) provision
Current:
Federal	$	-		$	87		$	62
State and local		370			277			21
Foreign		1,884			1,070			853
Deferred:
Federal		(57,065	)		12			12
State and local		(8,131	)		77			7
Foreign		(2,569	)		(341	)		(922	)
Income tax (benefit) provision	$	(65,511	)	$	1,182		$	33

Schedule of effective income tax rate reconciliation

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

(In thousands)	2024			2023			2022
Income tax expense (benefit) at the U.S. Federal statutory rate	$	4,344		$	3,340		$	1,368
Expense (benefit) for state taxes		293			377			(65	)
Impact of foreign operations		(250	)		(78	)		(819	)
R&D credits		(3,540	)		—			—
Global intangible low-taxed income		1,471			101			971
Indefinite life assets		—			20			19
Intercompany gain		—			177			—
Rate change		(1,817	)		—			—
Change in valuation allowance		(65,023	)		(2,276	)		(2,623	)
Change in liability for unrecognized tax benefits		(1,044	)		24			25
Share-based compensation		(1,823	)		(241	)		(2,018	)
Deferred adjustments		1,927			(281	)		(260	)
Provision to return		(219	)		(31	)		3,438
Other		170			50			(3	)
Income tax (benefit) provision	$	(65,511	)	$	1,182		$	33

Schedule of deferred tax assets and liabilities

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

(In thousands)	2024			2023
Deferred tax assets:
Accrued liabilities	$	10,135		$	8,748
Allowance for expected credit losses and doubtful accounts		154			132
Federal losses and credit carryforwards		28,588			36,912
Foreign losses and credit carryforwards		3,324			3,555
State losses and credit carryforwards		7,248			10,080
Deferred revenue		270			291
Capitalized research expenses		22,280			11,399
Property and equipment and software amortization		-			325
Operating lease liabilities		5,715			4,171
Goodwill and other intangible assets		(694	)		(536	)
Other		438			185
		77,458			75,262
Less: valuation allowance		(2,938	)		(67,928	)
Total		74,520			7,334
Deferred tax liabilities:
Operating lease right-of-use assets		(4,230	)		(3,153	)
Goodwill and other intangible assets		(3,274	)		(3,659	)
Other		(198	)		12
Total		(7,702	)		(6,800	)
Total deferred tax assets, net	$	66,818		$	534

Schedule of uncertain tax positions

Uncertain tax positions as of March 31, are as follows:

(In thousands)	2024			2023		2022
Beginning gross unrecognized tax benefits	$	575		$	575	$	575
Decreases related to prior year tax positions		(575	)		—		—
Increases related to current year tax positions		562			—		—
Ending gross unrecognized tax benefits	$	562		$	575	$	575