Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Mar. 31, 2014
Income Taxes [Abstract]  
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, 2014 and 2013 (in thousands):

Year ended March 31,
 
2014
   
2013
 
 
 
   
 
Domestic
 
$
(3,548
)
 
$
(4,056
)
Foreign
   
-
     
-
 
Income (loss) from continuing operations before income tax expense (benefit)
 
$
(3,548
)
 
$
(4,056
)
Components of income tax expense (benefit)
Components of income tax expense (benefit) for the years ended March 31, 2014 and 2013 consisted of the following (in thousands):
 
Year ended March 31,
 
2014
   
2013
 
 
 
   
 
Current:
 
   
 
U.S. Federal
 
$
-
   
$
-
 
State and Local
   
2
     
-
 
Foreign (credit)
   
-
     
-
 
Total current tax expense (benefit)
   
2
     
-
 
Deferred
               
U.S. Federal
   
(81
)
   
(83
)
State and Local
   
-
     
-
 
Foreign (credit)
   
-
     
-
 
Total deferred tax expense
   
(81
)
   
(83
)
 
               
Total income tax expense (benefit)
 
$
(79
)
 
$
(83
)
 
Reconciliation of income tax expense (benefit)
The income tax expense (benefit) for the years ended March 31, 2014 and 2013 differed from the amounts computed by applying the statutory U.S. federal income tax rate as  follows (in thousands):

Year ended March 31,
 
2014
   
2013
 
 
 
   
 
Federal tax expense (benefit) at U.S. Statutory Rate
 
$
(1,126
)
 
$
(1,335
)
State tax expense (benefit) net of federal tax effect
   
(193
)
   
(246
)
Change in valuation allowance
   
1,196
     
4,572
 
Tax effect of acquired net operating loss carryforwards
   
-
     
(3,123
)
Foreign SubF Germany
   
251
     
-
 
Amoritzation of deferred tax liability (81 ) (83 )
Other items
   
(126
)
   
132
 
Total income tax benefit
 
$
(79
)  
$
(83
)
Components of deferred taxes
Components of deferred taxes are as follows (in thousands):

Year ended March 31,
 
2014
   
2013
 
 
 
   
 
Deferred tax liability
  Intangible assets 
$
(500 ) (581 )
Deferred tax assets  
  Deferred revenue
 
 
48
   
 
-
 
  Accruals, reserves and other
   
1,932
     
1,616
 
  Net operating loss carryforwards
   
45,142
     
44,404
 
  Credit carryforward
   
2,397
     
2,380
 
  Capitalized research and development costs
   
299
     
299
 
  Other
   
5
     
9
 
 
               
Gross deferred tax assets
   
49,323
     
48,127
 
Valuation allowance
   
(49,323
)
   
(48,127
)
Net deferred tax asset
 
$
-
   
$
-
 
Tabular reconciliation of unrecognized tax benefits
The Company adopted FASB Interpretation No. 48, “Accounting for Uncertainty in Taxes”, (ASC Topic 740), on January 1, 2007. As a result of the implementation of ASC Topic 740, the Company did not recognize any adjustment to the liability for uncertain tax positions and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet. As of the date of adoption, the Company recorded a $1.4 million reduction to deferred tax assets for unrecognized tax benefits, all of which is currently offset by a full valuation allowance and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet at that time.

 
Tabular Reconciliation of Unrecognized Tax Benefits
 
 
 
 
 
Ending Balance as of 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 as of March 31, 2013
   
822
 
Increase/(Decrease) of unrecognized tax benefits taken in prior years
   
-
 
Increase/(Decrease) of unrecognized tax benefits related to current year
   
77
 
Increase/(Decrease) of unrecognized tax benefits related to settlements
   
-
 
Reductions to unrecognized tax benefits related to lapsing statute of limitations
   
-
 
Ending Balance as of March 31, 2014
  $
889