Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Income Taxes [Abstract]

Income Tax Expense (Benefit)

The income tax expense (benefit) is as follows:

	Years Ended March 31,
	2021			2020			2019
Current tax expense
Federal	$	5,734,000		$	5,313,000		$	680,000
State		722,000			1,454,000			647,000
Foreign		3,364,000			1,566,000			1,723,000
Total current tax expense		9,820,000			8,333,000			3,050,000
Deferred tax (benefit) expense
Federal		(1,909,000	)		(4,516,000	)		(2,087,000	)
State		118,000			(1,567,000	)		(295,000	)
Foreign		1,358,000			(3,261,000	)		(400,000	)
Total deferred tax benefit		(433,000	)		(9,344,000	)		(2,782,000	)
Total income tax expense (benefit)	$	9,387,000		$	(1,011,000	)	$	268,000

Deferred Income Taxes

Deferred income taxes consist of the following:

	March 31, 2021			March 31, 2020
Assets
Allowance for bad debts	$	85,000		$	1,037,000
Customer allowances earned		4,135,000			3,549,000
Allowance for stock adjustment returns		3,086,000			1,743,000
Inventory adjustments		4,323,000			5,567,000
Stock options		2,562,000			2,427,000
Operating lease liabilities		21,595,000			19,396,000
Estimate for returns		16,479,000			10,839,000
Accrued compensation		2,362,000			1,964,000
Net operating losses		4,210,000			4,091,000
Tax credits		1,828,000			1,343,000
Other		3,003,000			1,620,000
Total deferred tax assets	$	63,668,000		$	53,576,000
Liabilities
Plant and equipment, net		(2,083,000	)		(5,175,000	)
Intangibles, net		(9,840,000	)		(4,700,000	)
Operating lease		(20,950,000	)		(15,371,000	)
Other		(5,324,000	)		(3,966,000	)
Total deferred tax liabilities	$	(38,197,000	)	$	(29,212,000	)
Less valuation allowance	$	(6,163,000	)	$	(5,493,000	)
Total	$	19,308,000		$	18,871,000

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 is as follows:

	Years Ended March 31,
	2021			2020			2019
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State income tax rate, net of federal benefit		2.2	%		(3.7	)%		(3.7	)%
Excess tax benefit from stock compensation		0.5	%		(1.3	)%		0.7	%
Foreign income taxed at different rates		1.9	%		13.8	%		-	%
Return to provision adjustments		0.4	%		(1.5	)%		-	%
Non-deductible executive compensation		1.9	%		(4.0	)%		(7.3	)%
Change in valuation allowance		2.2	%		(18.7	)%		(15.3	)%
Net operating loss carryback		-	%		4.8	%		-	%
Uncertain tax positions		0.3	%		2.1	%		1.8	%
Research and development credit		(0.3	)%		1.1	%		1.3	%
Non-deductible transaction costs		-	%		-	%		(2.1	)%
Other income tax		0.3	%		(1.4	)%		0.1	%
		30.4	%		12.2	%		(3.5	)%

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended March 31,
	2021			2020			2019
Balance at beginning of period	$	1,011,000		$	1,083,000		$	1,219,000
Additions based on tax positions related to the current year		249,000			362,000			91,000
Additions for tax positions of prior year		67,000			-			-
Reductions for tax positions of prior year		(223,000	)		(434,000	)		(227,000	)
Balance at end of period	$	1,104,000		$	1,011,000		$	1,083,000