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Income taxes
 12 Months Ended
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,
 2021202020192018
Domestic$3,715 $24,479 $(21,673)$17,405 
Foreign(25)(410)500 551 
Total$3,690 $24,069 $(21,173)$17,956 
The components of the benefit (provision) for income taxes are as follows (in thousands):
Year ended
March 31,		Three months ended March 31,
(transition period)		Year ended
December 31,
 2021202020192018
Current:  
U.S. federal$(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. federal7,159 (2,532)3,096 1,005 
State1,293 99 368 101 
Foreign132 (10)(31)(167)
Total deferred8,584 (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,
2021202020192018
Federal statutory rate21.0 %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 expenses2.1 %0.8 %(0.1)%1.4 %
Nondeductible employee compensation9.1 %0.4 %— %— %
Provision-to-return adjustment1.5 %— %— %(3.9)%
Uncertain tax positions1.0 %(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, 2021March 31, 2020
Deferred tax assets:  
Compensation$624 $760 
Inventories and receivables5,710 3,472 
Accrued expenses2,067 1,996 
Stock compensation7,247 3,706 
Net operating losses272 92 
Right of use liability5,731 3,443 
Other560 558 
Deferred tax assets22,211 14,027 
Deferred tax liabilities:
Goodwill4,090 3,468 
Fixed assets2,506 3,294 
Intangible assets23,162 25,287 
Right of use asset5,294 3,292 
Other463 563 
Deferred tax liabilities35,515 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, 2021March 31, 2020
Deferred tax assets$175 $15 
Deferred tax liabilities13,479 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,
 2021202020192018
Balance at beginning of year$477 $581 $571 $764 
Increases for prior year tax positions6 32 — — 
Increases for current year tax positions65 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.