6. INCOME TAXES (Tables)
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12 Months Ended |
Mar. 31, 2026 |
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| INCOME TAXES |
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| Loss before income taxes and provision for income taxes |
| | | | | | | | | | | | | Year Ended March 31, | | | | 2026 | | 2025 | | 2024 | | | | | (In thousands) | | Loss before income taxes: | | | | | | | | | | | U.S. | | $ | (6,940) | | $ | (4,511) | | $ | (12,414) | | Foreign | | | (6,438) | | | (5,998) | | | (7,603) | | | | $ | (13,378) | | $ | (10,509) | | $ | (20,017) | | Current income tax expense: | | | | | | | | | | | U.S. federal | | $ | — | | $ | — | | $ | — | | State | | | 2 | | | 2 | | | 1 | | Foreign | | | 193 | | | 126 | | | 67 | | | | | 195 | | | 128 | | | 68 | | Deferred income tax expense (benefit): | | | | | | | | | | | U.S. federal | | | 2 | | | 2 | | | 2 | | State | | | (329) | | | — | | | — | | Foreign | | | — | | | — | | | — | | | | | (327) | | | 2 | | | 2 | | Provision (benefit) for income taxes | | $ | (132) | | $ | 130 | | $ | 70 | |
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| Income tax reconciliation |
| | | | | | | | | | | | | | | | Year Ended March 31, 2026 | | | | | | | (in thousands) | | | Percent | | U.S. Federal taxes at statutory rate | | | | | $ | (2,808) | | | 21.0 | % | State taxes, net of federal benefit | | | | | | 2 | | | 0.0 | % | Foreign tax effects | | | | | | | | | | | Israel - foreign tax rate differential between Israel and the US | | | | | | (325) | | | 2.4 | % | Israel - other | | | | | | 35 | | | (0.3) | % | Cayman Islands - foreign tax rate differential between Cayman Islands and the US | | | | | | 1,593 | | | (11.9) | % | Other foreign jurisdictions | | | | | | (89) | | | 0.7 | % | Research and development tax credits | | | | | | (318) | | | 2.4 | % | Change in valuation allowance | | | | | | 2,536 | | | (19.0) | % | Nontaxable or non-deductible items | | | | | | | | | | | Net gain on warrants | | | | | | (710) | | | 5.3 | % | Other | | | | | | (48) | | | 0.4 | % | Benefit for income taxes | | | | | $ | (132) | | | 1.0 | % |
| | | | | | | | | | | | | | | | Year Ended March 31, | | | | | | | 2025 | | 2024 | | | | | | | | (In thousands) | | U.S. Federal taxes at statutory rate | | | | | $ | (2,203) | | $ | (4,204) | | State taxes, net of federal benefit | | | | | | 2 | | | 1 | | Stock-based compensation | | | | | | 566 | | | 408 | | Tax credits | | | | | | (404) | | | (530) | | Foreign tax rate differential | | | | | | 1,382 | | | 1,663 | | GILTI tax | | | | | | — | | | 232 | | Lapses of applicable statute of limitations | | | | | | (767) | | | — | | Non-deductible expenses and other | | | | | | 1 | | | 2 | | | | | | | | (1,423) | | | (2,428) | | Valuation allowance | | | | | | 1,553 | | | 2,498 | | | | | | | $ | 130 | | $ | 70 | |
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| Deferred tax assets and deferred tax liabilities |
| | | | | | | | | March 31, | | | 2026 | | 2025 | | | | (In thousands) | Deferred tax assets: | | | | | | | Tax credits | | $ | 10,820 | | $ | 10,242 | Net operating losses | | | 7,369 | | | 5,933 | Capitalized research and development | | | 4,222 | | | 4,429 | Stock-based compensation | | | 1,189 | | | 1,187 | Property and equipment | | | 979 | | | 209 | Operating lease liabilities | | | 1,688 | | | 2,103 | Other loss carryover | | | 329 | | | — | Other reserves and accruals | | | 739 | | | 753 | Total deferred tax assets | | | 27,335 | | | 24,856 | Less valuation allowance | | | (25,384) | | | (22,794) | Deferred tax assets, net | | | 1,951 | | | 2,062 | Deferred tax liabilities: | | | | | | | Right of use assets | | | (1,640) | | | (2,078) | Total deferred tax liabilities | | | (1,640) | | | (2,078) | Net deferred tax asset (liability) | | $ | 311 | | $ | (16) |
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| Income taxes paid, net of refunds |
| | | | | | | | | | | | Fiscal year ended March 31, 2026 | | | | | | | (In thousands) | Federal | | | | | $ | (5) | State | | | | | | 2 | Foreign | | | | | | | Israel | | | | | | 159 | Taiwan | | | | | | 47 | | | | | | $ | 203 |
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| Unrecognized tax benefits |
| | | | | | | | | | | | | Year Ended March 31, | | | | 2026 | | 2025 | | 2024 | | | | | (In thousands) | | Unrecognized tax benefits, beginning of period | | $ | 3,356 | | $ | 3,948 | | $ | 3,723 | | Lapses of applicable statute of limitations | | | — | | | (767) | | | — | | Additions based on tax positions related to current year | | | 149 | | | 175 | | | 225 | | Unrecognized tax benefits, end of period | | $ | 3,505 | | $ | 3,356 | | $ | 3,948 | |
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