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Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2024
Income Taxes [Abstract] |
Domestic and Foreign Components of (Loss) Income Before Income Taxes | Domestic and foreign components of (loss) income before income taxes are as follows:
|  | Years Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
United States |  | $ | (29,661,000 | ) |  | $ | (14,470,000 | ) |  | $ | 6,021,000 |
Foreign |  |  | 16,593,000 |  |  |  | 11,361,000 |  |  |  | 7,128,000 |
(Loss) income before income taxes |  |  | (13,068,000 | ) |  |  | (3,109,000 | ) |  |  | 13,149,000 |
Income Tax Expense | The income tax expense is as follows:
|  | Years Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current tax expense |  |  |  |  |  |  |  |  |
Federal |  | $ | 1,696,000 |  |  | $ | 2,483,000 |  |  | $ | 8,572,000 |
State |  |  | 363,000 |  |  |  | 396,000 |  |  |  | 1,478,000 |
Foreign |  |  | 4,553,000 |  |  |  | 3,426,000 |  |  |  | 3,180,000 |
Total current tax expense |  |  | 6,612,000 |  |  |  | 6,305,000 |  |  |  | 13,230,000 |
Deferred tax expense (benefit) |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 25,320,000 |  |  |  | (5,037,000 | ) |  |  | (6,411,000 | )
State |  |  | 4,249,000 |  |  |  | (705,000 | ) |  |  | (659,000 | )
Foreign |  |  | (5,000 | ) |  |  | 535,000 |  |  |  | (372,000 | )
Total deferred tax expense (benefit) |  |  | 29,564,000 |  |  |  | (5,207,000 | ) |  |  | (7,442,000 | )
Total income tax expense |  | $ | 36,176,000 |  |  | $ | 1,098,000 |  |  | $ | 5,788,000 |
Deferred Income Taxes | Deferred income taxes consist of the following:
|  | March 31, 2024 |  |  | March 31, 2023 |
Assets |  |  |  |  |  |
Allowance for bad debts |  | $ | 44,000 |  |  | $ | 78,000 |
Customer allowances earned |  |  | 4,706,000 |  |  |  | 4,760,000 |
Allowance for stock adjustment returns |  |  | 3,620,000 |  |  |  | 2,391,000 |
Inventory adjustments |  |  | 7,419,000 |  |  |  | 7,817,000 |
Intangibles, net |  |  | 852,000 |  |  |  | 809,000 |
Stock options |  |  | 2,723,000 |  |  |  | 2,770,000 |
Operating lease liabilities |  |  | 21,251,000 |  |  |  | 23,408,000 |
Estimate for returns |  |  | 29,942,000 |  |  |  | 26,670,000 |
Accrued compensation |  |  | 2,600,000 |  |  |  | 2,718,000 |
Net operating losses |  |  | 4,670,000 |  |  |  | 5,351,000 |
Tax credits |  |  | 2,054,000 |  |  |  | 2,012,000 |
Capitalized research credits |  |  | 1,158,000 |  |  |  | - |
Plant and equipment, net |  |  | 1,010,000 |  |  |  | - |
Other |  |  | 6,588,000 |  |  |  | 5,046,000 |
Total deferred tax assets |  | $ | 88,637,000 |  |  | $ | 83,830,000 |
Liabilities |  |  |  |  |  |  |  |
Plant and equipment, net |  |  | - |  |  |  | (79,000 | )
Contract assets |  |  | (10,265,000 | ) |  |  | (12,357,000 | )
Operating lease assets |  |  | (23,845,000 | ) |  |  | (25,004,000 | )
Other |  |  | (6,663,000 | ) |  |  | (6,864,000 | )
Total deferred tax liabilities |  | $ | (40,773,000 | ) |  | $ | (44,304,000 | )
Less valuation allowance |  | $ | (45,399,000 | ) |  | $ | (7,619,000 | )
Total |  | $ | 2,465,000 |  |  | $ | 31,907,000 |
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, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Statutory federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income tax rate, net of federal benefit |  |  | 10.8 | % |  |  | 3.5 | % |  |  | 4.1 | %
Excess tax benefit from share-based compensation |  |  | (4.8 | )% |  |  | - | % |  |  | - | %
Foreign income taxed at different rates |  |  | (9.8 | )% |  |  | (28.7 | )% |  |  | 4.9 | %
Non-deductible executive compensation |  |  | (2.6 | )% |  |  | (9.0 | )% |  |  | 7.2 | %
Change in valuation allowance |  |  | (289.1 | )% |  |  | (25.8 | )% |  |  | 5.0 | %
Uncertain tax positions |  |  | 0.9 | % |  |  | (1.0 | )% |  |  | 6.1 | %
Research and development credit |  |  | 0.7 | % |  |  | 2.7 | % |  |  | (0.9 | )%
Net operating loss carryback |  |  | - | % |  |  | - | % |  |  | (0.4 | )%
Other |  |  | (3.9 | )% |  |  | 2.0 | % |  |  | (3.0 | )%
|  |  | (276.8 | )% |  |  | (35.3 | )% |  |  | 44.0 | %
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Years Ended March 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Balance at beginning of period |  | $ | 1,964,000 |  |  | $ | 1,975,000 |  |  | $ | 1,104,000 |
Additions based on tax positions related to the current year |  |  | 15,000 |  |  |  | 53,000 |  |  |  | 352,000 |
Additions for tax positions of prior year |  |  | 15,000 |  |  |  | - |  |  |  | 581,000 |
Reductions for tax positions of prior year |  |  | (210,000 | ) |  |  | (64,000 | ) |  |  | (62,000 | )
Balance at end of period |  | $ | 1,784,000 |  |  | $ | 1,964,000 |  |  | $ | 1,975,000 |

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