INCOME TAXES

The following table presents the components of income tax expense:



	For the Fiscal Year Ended March 31,
(In thousands)	2020		2019
Federal:
Current	$	—	$	—
Deferred	—		—
Total federal	—		—
State:
Current	313		295
Deferred	—		—
Total State	313		295
Income tax expense	$	313	$	295

Net deferred taxes consisted of the following:



	As of March 31,
(In thousands)	2020			2019
Deferred tax assets:
Net operating loss carryforwards	$	7,549		$	6,877
Stock-based compensation	2,666			2,468
Intangibles	6,162			6,293
Accrued liabilities	1,162			1,345
Allowance for doubtful accounts	1,540			1,279
Capital loss carryforwards	—			2,247
Interest expense	2,821			1,368
Other	359			430
Total deferred tax assets before valuation allowance	22,259			22,307
Less: Valuation allowance	(17,614		)	(19,084		)
Total deferred tax assets after valuation allowance	$	4,645		$	3,223
Deferred tax liabilities:
Depreciation and amortization	$	(1,398	)	$	(3,223	)
Equity investment in Starrise, a related party	(3,247		)	—
Total deferred tax liabilities	(4,645		)	(3,223		)
Net deferred tax	$	—		$	—

We have provided a valuation allowance equal to our net deferred tax assets for the years ended March 31, 2020 and 2019. We are required to recognize all or a portion of our deferred tax assets if we believe that it is more likely than not that such assets will be realized, given the weight of all available evidence. We assess the realizability of the deferred tax assets at each interim and annual balance sheet date. In assessing the need for a valuation allowance, we considered both positive and negative evidence, including recent financial performance, projections of future taxable income and scheduled reversals of deferred tax liabilities. The net change in the valuation allowance of $1.5 million during the fiscal year ended March 31, 2020, is a result of recording of a deferred tax liability of $3.7 million in connection with our equity investment in Starrise, a related party, offset by an increase in deferred tax assets. We increased the valuation allowance by $3.2 million during the fiscal year ended March 31, 2019 due to increases in the deferred tax assets. We will continue to assess the realizability of the deferred tax assets at each interim and annual balance sheet date based upon actual and forecasted operating results.

At March 31, 2020, we had Federal and state net operating loss carryforwards of approximately $27.0 million available in the United States of America ("US") and approximately $0.7 million in Australia to reduce future taxable income. The U.S. federal and state net operating loss carryforwards of approximately $27.0 million begin to expire in 2021. The Australian net operating loss carryforward of $0.7 million, does not expire.

At March 31, 2020, capital loss carryforwards of approximately $7.0 million, that were generated during the year ended March 31, 2015 expired.

Under the provisions of the Internal Revenue Code, certain substantial changes in our ownership may result in a limitation on the amount of net operating losses that may be utilized in future years. During the year ended March 31, 2018, approximately $233.5 million of our net operating losses became subject to limitation under Internal Revenue Code Section 382 in connection with the consummation in November 2017 of the transactions under the Stock Purchase Agreement with Bison. Approximately $209.0 million of our net operating losses will not be able to be utilized because of the ownership change. Future significant ownership changes could cause a portion or all of our remaining net operating losses to expire before utilization.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The Act contains several new or changed income tax provisions, including but not limited to the following: increased limitation threshold for determining deductible interest expense; class life changes to qualified improvements (in general, from 39 years to 15 years); and the ability to carry back net operating losses incurred from tax years 2018 through 2020 up to the five preceding tax years. The Company has evaluated the new tax provisions of the CARES Act and determined the impact to be either immaterial or not applicable.

The differences between the United States statutory federal tax rate and our effective tax rate are as follows:



	For the fiscal years ended March 31,
	2020		2019
Provision at the U.S. statutory federal tax rate	21.0	%	21.0	%
State income taxes, net of federal benefit	(0.1	)%	2.1	%
Change in valuation allowance	(9.9	)%	(20.1	)%
Non-deductible expenses	(3.4	)%	(5.7	)%
Net operating loss decrease under IRC 382	(10.2	)	—	%
Effect of tax reform	—		—	%
Losses from non-consolidated entities	0.4	%	0.8	%
Other	—		—	%
Income tax expense	(2.2	)%	(1.9	)%

We file income tax returns in the U.S. federal jurisdiction, various U.S. states, and Australia. For federal income tax purposes, our fiscal 2017 through 2020 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For U.S. state and Australian tax purposes, our fiscal 2016 through 2020 tax years generally remain open for examination by most of the tax authorities under a four-year statute of limitations.