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Income Taxes (Tables) | 12 Months Ended
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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 |

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