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Income taxes | 12 Months Ended
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Mar. 31, 2021
Income Tax Disclosure [Abstract] |
Income taxes | Income taxes The components of income (loss) before provision for income taxes are as follows (in thousands):
| Year ended March 31, |  |  |  | Three months ended March 31, (transition period) |  | Year ended December 31,
| 2021 |  | 2020 |  |  |  | 2019 |  | 2018
Domestic | $ | 3,715 |  |  | $ | 24,479 |  |  |  |  | $ | (21,673) |  |  | $ | 17,405 |
Foreign | (25) |  |  | (410) |  |  |  |  | 500 |  |  | 551 |
Total | $ | 3,690 |  |  | $ | 24,069 |  |  |  |  | $ | (21,173) |  |  | $ | 17,956 |
The components of the benefit (provision) for income taxes are as follows (in thousands):
| Year ended March 31, |  |  |  | Three months ended March 31, (transition period) |  | Year ended December 31,
| 2021 |  | 2020 |  |  |  | 2019 |  | 2018
Current: |  |  |  |  |  |  |  |  |
U.S. federal | $ | (4,772) |  |  | $ | (2,681) |  |  |  |  | $ | (13) |  |  | $ | (2,414) |
State | (1,186) |  |  | (1,066) |  |  |  |  | (139) |  |  | (948) |
Foreign | (84) |  |  | 5 |  |  |  |  | (22) |  |  | (8) |
Total current | (6,042) |  |  | (3,742) |  |  |  |  | (174) |  |  | (3,370) |
Deferred: |  |  |  |  |  |  |  |  |
U.S. federal | 7,159 |  |  | (2,532) |  |  |  |  | 3,096 |  |  | 1,005 |
State | 1,293 |  |  | 99 |  |  |  |  | 368 |  |  | 101 |
Foreign | 132 |  |  | (10) |  |  |  |  | (31) |  |  | (167) |
Total deferred | 8,584 |  |  | (2,443) |  |  |  |  | 3,433 |  |  | 939 |
Total (provision) benefit for income taxes | $ | 2,542 |  |  | $ | (6,185) |  |  |  |  | $ | 3,259 |  |  | $ | (2,431) |
The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate:
| Year ended March 31, |  |  |  | Three months ended March 31, (transition period) |  | Year ended December 31,
| 2021 |  | 2020 |  |  |  | 2019 |  | 2018
Federal statutory rate | 21.0 | % |  | 21.0 | % |  |  |  | 21.0 | % |  | 21.0 | %
State tax, net of federal benefit | (10.6) | % |  | 3.7 | % |  |  |  | 1.2 | % |  | 2.6 | %
State tax deferred rate change, net of federal benefit | (1.6) | % |  | 0.1 | % |  |  |  | — | % |  | 0.9 | %
Nondeductible business expenses | 2.1 | % |  | 0.8 | % |  |  |  | (0.1) | % |  | 1.4 | %
Nondeductible employee compensation | 9.1 | % |  | 0.4 | % |  |  |  | — | % |  | — | %
Provision-to-return adjustment | 1.5 | % |  | — | % |  |  |  | — | % |  | (3.9) | %
Uncertain tax positions | 1.0 | % |  | (0.2) | % |  |  |  | (0.1) | % |  | (1.3) | %
Stock based compensation | (90.7) | % |  | (0.8) | % |  |  |  | (6.1) | % |  | (8.6) | %
Others | (0.7) | % |  | 0.7 | % |  |  |  | (0.5) | % |  | 1.4 | %
Effective tax rate | (68.9) | % |  | 25.7 | % |  |  |  | 15.4 | % |  | 13.5 | %
The components of net deferred taxes arising from temporary differences are as follows (in thousands):
| March 31, 2021 |  | March 31, 2020
Deferred tax assets: |  |  |
Compensation | $ | 624 |  |  | $ | 760 |
Inventories and receivables | 5,710 |  |  | 3,472 |
Accrued expenses | 2,067 |  |  | 1,996 |
Stock compensation | 7,247 |  |  | 3,706 |
Net operating losses | 272 |  |  | 92 |
Right of use liability | 5,731 |  |  | 3,443 |
Other | 560 |  |  | 558 |
Deferred tax assets | 22,211 |  |  | 14,027 |
Deferred tax liabilities: |  |  |
Goodwill | 4,090 |  |  | 3,468 |
Fixed assets | 2,506 |  |  | 3,294 |
Intangible assets | 23,162 |  |  | 25,287 |
Right of use asset | 5,294 |  |  | 3,292 |
Other | 463 |  |  | 563 |
Deferred tax liabilities | 35,515 |  |  | 35,904 |
Net deferred tax liabilities | $ | 13,304 |  |  | $ | 21,877 |
The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands):
| March 31, 2021 |  | March 31, 2020
Deferred tax assets | $ | 175 |  |  | $ | 15 |
Deferred tax liabilities | 13,479 |  |  | 21,892 |
Net deferred tax liabilities | $ | 13,304 |  |  | $ | 21,877 |
As of March 31, 2021, the Company had gross federal, state and foreign net operating loss carryforwards of $0.5 million, $0.1 million and $0.6 million, respectively. The federal and state net operating loss carryforwards can either be carried forward 20 years or indefinitely. The federal and state net operating loss carryforwards will begin to expire in 2038. The foreign net operating loss carryforwards have a carryforward period of 5 years and will begin to expire in 2026. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| Year ended March 31, |  |  |  | Three months ended March 31, (transition period) |  | Year ended December 31,
| 2021 |  | 2020 |  |  |  | 2019 |  | 2018
Balance at beginning of year | $ | 477 |  |  | $ | 581 |  |  |  |  | $ | 571 |  |  | $ | 764 |
Increases for prior year tax positions | 6 |  |  | 32 |  |  |  |  | — |  |  | — |
Increases for current year tax positions | 65 |  |  | 90 |  |  |  |  | 10 |  |  | 173 |
Decreases for prior year tax positions | — |  |  | — |  |  |  |  | — |  |  | (8) |
Decreases due to settlements | (27) |  |  | (29) |  |  |  |  | — |  |  | — |
Decreases due to statutes lapsing | (63) |  |  | (197) |  |  |  |  | — |  |  | (358) |
Balance at end of year | $ | 458 |  |  | $ | 477 |  |  |  |  | $ | 581 |  |  | $ | 571 |
If all of the Company’s unrecognized tax benefits as of March 31, 2021, March 31, 2020 and December 31, 2018, and the three-month transition period ended March 31, 2019 were recognized, $0.5 million, $0.5 million, $0.4 million and $0.4 million, respectively, of unrecognized tax benefits, would impact the effective tax rate. The Company believes it is reasonably possible that $0.1 million of unrecognized tax benefits may reverse in the next twelve months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. The Company had $0.1 million and $0.1 million of accrued gross interest and penalties as of March 31, 2021 and March 31, 2020, respectively. The Company recognized net interest and penalties expense of $29 thousand, $23 thousand, $(40) thousand and $3 thousand for the years ended March 31, 2021, March 31, 2020 and December 31, 2018, and the three-month transition period ended March 31, 2019, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of March 31, 2021, with few exceptions, the Company or its subsidiaries are no longer subject to examination prior to tax year ended December 31, 2017.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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