Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Mar. 31, 2019

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The income tax expense (benefit) from continuing operations are summarized as follows:



	Fiscal Year Ended March 31,
(in thousands)	2019			2018
Federal:
Current	$	—		$	(697	)
Deferred	(1		)	7
	(1		)	(690		)
State:
Current	20			52
Deferred	3			2
	23			54
Foreign:
Current	17			39
Deferred	—			—
	17			39
Total	$	39		$	(597	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The statutory federal income tax rate is reconciled to the Company's effective income tax rates below:



	Fiscal Year Ended March 31,
	2019		2018
Statutory federal income tax rate	21.0	%	30.8	%
Meals and entertainment	(0.2	)	(4.5	)
State income tax, net of federal tax effect	(6.4	)	84.5
Valuation allowance	(14.5	)	2,677.8
Impact of Tax Reform	—		(2,686.5	)
Foreign tax credit	(0.2	)	(8.9	)
Equity compensation	(0.1	)	(20.4	)
NoranTel CTA Adjustment	—		33.0
Other	—		(0.3	)
Effective income tax rate	(0.4	)%	105.5	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Components of the net deferred income tax assets are as follows:



	March 31,
(in thousands)	2019			2018
Deferred income tax assets:
Allowance for doubtful accounts	$	26		$	24
Foreign tax credit carryforward	810			812
Depreciation	173			227
Deferred revenue	425			675
Accrued compensation	412			358
Inventory reserves	757			948
Accrued warranty	33			77
Net operating loss carryforward	35,024			34,924
Accrued restructuring	—			16
Intangibles and goodwill	272			—
Other	839			660
Gross deferred tax assets	38,771			38,721
Valuation allowance	(38,771		)	(37,103		)
Net deferred income tax assets	—			1,618
Deferred income tax liabilities:
Intangibles and goodwill	—			(1,618		)
Net deferred income tax liabilities	$	—		$	—

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits for fiscal years 2018 and 2019 is as follows:



	(in thousands)
Unrecognized tax benefits at March 31, 2017	$	2,962
Additions based on positions related to fiscal year 2018	—
Unrecognized tax benefits at March 31, 2018	2,962
Additions based on positions related to fiscal year 2019	—
Reductions as a result of expirations of applicable statutes of limitations	(780		)
Unrecognized tax benefits at March 31, 2019	$	2,182

Summary of Income Tax Examinations [Table Text Block]

With few exceptions, the major jurisdictions subject to examination by the relevant taxable authorities, and open tax years, stated as the Company's fiscal years, are as follows:



Jurisdiction	Open Tax Years
U.S. Federal	2015	-	2018
U.S. States	2014	-	2018
Foreign	2014	-	2018

Since net operating loss carryovers are subject to audit based on the year in which they are utilized, all of the Company’s net operating losses generated in the past are open to adjustment to the Internal Revenue Service or state tax authorities (some states have shorter carryover periods).

The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate federal income tax rate from 34% to 21% effective January 1, 2018. In the quarter ended December 31, 2018, the Company finalized its estimates of the impact of the Tax Act with no material effect on the Consolidated Financial Statements. Due to the lack of interest expense, foreign operations and modest officer’s compensation, as well as the full valuation allowance, the various provisions of tax reform, effective this year, had no impact.