Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Components of income (loss) from continuing operations before income taxes

Components of loss from continuing operations before income taxes is attributed to the following geographic locations for the years ended March 31, 2013 and 2012 (in thousands):

Year ended March 31,	2013			2012

Domestic	$	(4,056	)	$	(4,543	)
Foreign		-			-
Loss from continuing operations before income tax expense (benefit)	$	(4,056	)	$	(4,543	)

Components of income tax expense (benefit)

Components of income tax expense (benefit) for the years ended March 31, 2013 and 2011 consisted of the following (in thousands):

Year ended March 31,	2013			2012

Current:
U.S. Federal	$	-		$	-
State and Local		-			-
Foreign (credit)		-			-
Total current tax expense (benefit)		-			-
Deferred
U.S. Federal		(83	)		-
State and Local		-			-
Foreign (credit)		-			-
Total deferred tax expense		(83	)		-

Total income tax expense (benefit)	$	(83	)	$	-

Reconciliation of income tax expense (benefit)

The income tax expense (benefit) for the years ended March 31, 2013 and 2012 differed from the amounts computed by applying the statutory U.S. federal income tax rate as follows (in thousands):

Year ended March 31,	2013			2012

Federal tax expense (benefit) at U.S. Statutory Rate	$	(1,335	)	$	(486	)
State tax expense (benefit) net of federal tax effect		(246	)		(90	)
Change in valuation allowance		4,572			26
Tax effect of acquired net operating loss carryforwards		(3,123	)		-
Other items		49			550
Total income tax benefit	$	(83	)	$	-

Components of deferred taxes

Components of deferred taxes are as follows (in thousands):

Year ended March 31,	2013			2012

Accruals, reserves and other	$	1,740		$	1,566
Net operating loss carryforwards		43,446			38,140
Credit carryforward		2,237			2,233
Uniform cap adjustment		-			-
Impairment on investment		-			548
Other		484			848

Gross deferred tax assets		47,907			43,335
Valuation allowance		(47,907	)		(43,335	)
Net deferred tax asset	$	-		$	-

Tabular reconciliation of unrecognized tax benefits

Tabular Reconciliation of Unrecognized Tax Benefits

Ending Balance at March 31, 2011	$	844

Increase/(Decrease) of unrecognized tax benefits taken in prior years		-
Increase/(Decrease) of unrecognized tax benefits related to current year		3
Increase/(Decrease) of unrecognized tax benefits related to settlements		-
Reductions to unrecognized tax benefits related to lapsing statute of limitations		(14	)
Ending Balance at March 31, 2012		833
Increase/(Decrease) of unrecognized tax benefits taken in prior years		-
Increase/(Decrease) of unrecognized tax benefits related to current year		2
Increase/(Decrease) of unrecognized tax benefits related to settlements		-
Reductions to unrecognized tax benefits related to lapsing statute of limitations		(13	)
Ending Balance at March 31, 2013	$	822