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Income Taxes (Tables)

12 Months Ended

Mar. 31, 2023

Income Taxes [Abstract]

Domestic and Foreign Components of Income (Loss) Before Income Taxes

Domestic and foreign components of income (loss) before income taxes are as follows:

		Years Ended March 31,
		2023				2022				2021
United States		$	(14,470,000	)		$	6,021,000			$	13,920,000
Foreign			11,361,000				7,128,000				16,943,000
(Loss) income before income taxes			(3,109,000	)			13,149,000				30,863,000

Income Tax Expense

The income tax expense is as follows:

		Years Ended March 31,
		2023				2022				2021
Current tax expense
Federal		$	2,483,000			$	8,572,000			$	5,734,000
State			396,000				1,478,000				722,000
Foreign			3,426,000				3,180,000				3,364,000
Total current tax expense			6,305,000				13,230,000				9,820,000
Deferred tax (benefit) expense
Federal			(5,037,000	)			(6,411,000	)			(1,909,000	)
State			(705,000	)			(659,000	)			118,000
Foreign			535,000				(372,000	)			1,358,000
Total deferred tax benefit			(5,207,000	)			(7,442,000	)			(433,000	)
Total income tax expense		$	1,098,000			$	5,788,000			$	9,387,000

Deferred Income Taxes

Deferred income taxes consist of the following:

		March 31, 2023				March 31, 2022
Assets
Allowance for bad debts		$	78,000			$	99,000
Customer allowances earned			4,760,000				5,321,000
Allowance for stock adjustment returns			2,391,000				1,651,000
Inventory adjustments			7,817,000				3,815,000
Intangibles, net			809,000				785,000
Stock options			2,770,000				2,984,000
Operating lease liabilities			23,408,000				23,894,000
Estimate for returns			26,670,000				25,445,000
Accrued compensation			2,718,000				3,515,000
Net operating losses			5,351,000				4,617,000
Tax credits			2,012,000				2,018,000
Other			5,046,000				3,833,000
Total deferred tax assets		$	83,830,000			$	77,977,000
Liabilities
Plant and equipment, net			(79,000	)			(1,051,000	)
Contract assets			(12,357,000	)			(13,873,000	)
Operating lease assets			(25,004,000	)			(23,421,000	)
Other			(6,864,000	)			(5,960,000	)
Total deferred tax liabilities		$	(44,304,000	)		$	(44,305,000	)
Less valuation allowance		$	(7,619,000	)		$	(6,816,000	)
Total		$	31,907,000			$	26,856,000

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,
		2023				2022				2021
Statutory federal income tax rate			21.0	%			21.0	%			21.0	%
State income tax rate, net of federal benefit			3.5	%			4.1	%			2.2	%
Foreign income taxed at different rates			(28.7	)%			4.9	%			1.9	%
Non-deductible executive compensation			(9.0	)%			7.2	%			1.9	%
Change in valuation allowance			(25.8	)%			5.0	%			2.2	%
Uncertain tax positions			(1.0	)%			6.1	%			0.3	%
Research and development credit			2.7	%			(0.9	)%			(0.3	)%
Net operating loss carryback			-	%			(0.4	)%			-	%
Other			2.0	%			(3.0	)%			1.2	%
			(35.3	)%			44.0	%			30.4	%

Unrecognized Tax Benefits

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

		Years Ended March 31,
		2023				2022				2021
Balance at beginning of period		$	1,975,000			$	1,104,000			$	1,011,000
Additions based on tax positions related to the current year			53,000				352,000				249,000
Additions for tax positions of prior year			-				581,000				67,000
Reductions for tax positions of prior year			(64,000	)			(62,000	)			(223,000	)
Balance at end of period		$	1,964,000			$	1,975,000			$	1,104,000

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits.

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