Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

Income Taxes [Abstract]

Schedule of income tax expense (benefit)

The income tax expense from the Company’s continuing operations for the years ended March 31 is as follows:

	Years Ended March 31,
	2015		2014			2013
Current tax expense
Federal	$	1,523,000	$	4,564,000		$	31,226,000
State		1,100,000		614,000			3,368,000
Foreign		527,000		599,000			336,000
Total current tax expense		3,150,000		5,777,000			34,930,000
Deferred tax expense (benefit)
Federal		5,553,000		2,477,000			(25,074,000	)
State		93,000		(162,000	)		(2,706,000	)
Foreign		272,000		(759,000	)		282,000
Total deferred tax expense (benefit)		5,918,000		1,556,000			(27,498,000	)
Total income tax expense	$	9,068,000	$	7,333,000		$	7,432,000

Schedule of deferred income taxes

Deferred income taxes consist of the following at March 31:

	2015			2014
Assets
Accounts receivable valuation	$	3,100,000		$	3,926,000
Allowance for customer incentives		1,296,000			1,343,000
Inventory obsolescence reserve		1,056,000			1,070,000
Stock options		1,931,000			1,426,000
Intangibles, net		846,000			796,000
Estimate for returns		986,000			-
Deferred core revenue		-			2,885,000
Accrued compensation		2,563,000			1,787,000
Net operating losses		3,007,000			9,117,000
Other		2,986,000			2,305,000
Total deferred tax assets	$	17,771,000		$	24,655,000
Liabilities
Property and equipment, net		(807,000	)		(298,000	)
Estimate for returns		-			(916,000	)
Other		(1,635,000	)		(2,197,000	)
Total deferred tax liabilities	$	(2,442,000	)	$	(3,411,000	)
Less valuation allowance	$	-		$	-
Net deferred tax assets	$	15,329,000		$	21,244,000
Net current deferred income tax asset	$	22,871,000		$	18,630,000
Net long-term deferred income tax (liability) asset		(7,542,000	)		2,614,000
Total	$	15,329,000		$	21,244,000

Schedule of difference between income tax expense at the federal statutory rate and effective tax rate

The difference between the income tax expense at the federal statutory rate and the Company’s effective tax rate from the Company’s continuing operations is as follows:

	Years Ended March 31,
	2015			2014			2013
Statutory federal income tax rate		35.0	%		34.0	%		34.0	%
State income tax rate, net of federal benefit		2.2	%		2.4	%		1.8	%
Change in deferred tax rate		(0.2	)%		(1.8	)%		(0.4	)%
Foreign income taxed at different rates		(0.9	)%		(7.2	)%		(0.1	)%
Warrants		0.8	%		25.7	%		0.6	%
Non-deductible executive compensation		3.4	%		1.6	%		0.7	%
Uncertain Tax Positions		2.5	%		(2.4	)%		-	%
Other income tax		1.4	%		0.8	%		(2.8	)%
		44.2	%		53.1	%		33.8	%

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits from the Company’s continuing operations is as follows at March 31:

	2015			2014			2013
Balance at beginning of period	$	540,000		$	827,000		$	634,000
Additions based on tax positions related to the current year		359,000			71,000			227,000
Additions for tax positions of prior year		336,000			-			-
Reductions for tax positions of prior year		(118,000	)		(358,000	)		(34,000	)
Settlements		-			-			-
Balance at end of period	$	1,117,000		$	540,000		$	827,000