Annual report pursuant to Section 13 and 15(d)

16. Income Taxes (Tables)

v3.21.2
16. Income Taxes (Tables)
12 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of deferred tax assets

The Company has the following net deferred tax assets:

 

    March 31,  
    2021     2020  
Deferred tax assets:                
Net operating loss carryforwards   $ 25,687,000     $ 27,948,000  
Research and development tax credit carryforwards     1,850,000       1,850,000  
Stock-based compensation     3,120,000       3,803,000  
Allowances and accruals     659,000       1,099,000  
Other deferred tax assets     398,000       731,000  
State income taxes           1,000  
Basis difference in assets           6,000  
Lease liability     78,000       226,000  
Gross deferred tax assets   $ 31,792,000     $ 35,664,000  
                 
Less valuation allowance     (31,528,000 )     (35,297,000 )
                 
Total deferred tax assets   $ 264,000     $ 367,000  
                 
Deferred tax liabilities:                
Fixed assets     (3,000 )     (5,000 )
Prepaid expenses     (186,000 )     (143,000 )
Right of Use asset     (75,000 )     (219,000 )
Gross deferred tax liabilities     (264,000 )     (367,000 )
Net deferred tax assets   $     $  
Income tax provision domestic and foreign

The income tax provision (benefit) is based on the following loss before income taxes, which are from domestic sources and foreign loss before income taxes:

 

    Year Ended March 31,  
    2021     2020  
Domestic   $ 2,052,000     $ 1,425,000  
Foreign     1,467,000       227,000  
    $ 3,519,000     $ 1,652,000  
Schedule of income tax expense

The Company’s income tax expense/(benefits) consist of the following:

 

    Year Ended March 31,  
    2021     2020  
Current:            
State   $ 1,000     $ 3,000  
Foreign     941,000       118,000  
      942,000       121,000  
Deferred:                
Federal            
State            
Foreign            
    $ 942,000     $ 121,000  
Reconciliation of federal income tax rate to effective rate

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for continuing operations is as follows:

 

    Year Ended March 31,  
    2021     2020  
Expected federal statutory rate     21.0%       21.0%  
State income taxes     2.1%       11.0%  
                 
Foreign earnings taxed at different rates     3.6%       0.6%  
Foreign tax true-up     (12.4% )        
Effect of state net operating loss expiration     (0.0% )     (0.1% )
Effect of permanent differences     (9.5% )     (14.0% )
Effect of intercompany interest permanent differences     (17.9% )     5.6%  
True-up of state deferred assets     (120.7% )     (19.9% )
GILTI income     (0.0% )     (1.4% )
      (133.8% )     2.8%  
Change in valuation allowance     107.1%       (10.1% )
Totals     (26.7% )     (7.3% )