Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.24.1.1.u2
Income Taxes
 12 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11 – Income Taxes:

An analysis of the components of income (loss) before provision (benefit) for income taxes is presented below:

 

 

 

Year ended March 31,

 

 

 

2024

 

 

2023

 

 

2022

 

United States

 

$

5,077

 

 

$

(66

)

 

$

(11,954

)

Asia

 

 

497

 

 

 

627

 

 

 

738

 

Income (loss) before provision (benefit) for income taxes

 

$

5,574

 

 

$

561

 

 

$

(11,216

)

 

The provision (benefit) for income taxes consists of:

 

 

 

Year ended March 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

1,133

 

 

$

37

 

 

$

(31

)

State

 

 

100

 

 

 

204

 

 

 

72

 

Foreign

 

 

257

 

 

 

73

 

 

 

749

 

 

 

 

1,490

 

 

 

314

 

 

 

790

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(419

)

 

 

(89

)

 

 

(2,648

)

State

 

 

88

 

 

 

(82

)

 

 

(155

)

Foreign

 

 

(106

)

 

 

93

 

 

 

(423

)

Changes in valuation allowance

 

 

(35

)

 

 

(42

)

 

 

(7

)

 

 

 

(472

)

 

 

(120

)

 

 

(3,233

)

Total provision (benefit) for income taxes

 

$

1,018

 

 

$

194

 

 

$

(2,443

)

 

The reconciliation of the provision (benefit) calculated using the U.S. federal tax rate with the provision (benefit) for income taxes presented in the consolidated financial statements is as follows:

 

 

 

Year ended March 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Provision (benefit) for income taxes at federal rate

 

$

1,170

 

 

$

118

 

 

$

(2,355

)

State taxes

 

 

156

 

 

 

92

 

 

 

(96

)

Charges not deductible for income tax purposes

 

 

54

 

 

 

26

 

 

 

147

 

Stock based compensation

 

 

(8

)

 

 

114

 

 

 

—

 

Research and development tax credits

 

 

(327

)

 

 

(240

)

 

 

(295

)

Valuation allowance

 

 

(35

)

 

 

(42

)

 

 

(7

)

Effect of foreign tax rate

 

 

26

 

 

 

27

 

 

 

31

 

Nondeductible fringe benefits

 

 

30

 

 

 

44

 

 

 

—

 

162(m)

 

 

105

 

 

 

—

 

 

 

—

 

Foreign withholding tax

 

 

—

 

 

 

—

 

 

 

138

 

Foreign-derived intangible income deduction

 

 

(134

)

 

 

—

 

 

 

(2

)

Global intangible low-taxed income

 

 

(20

)

 

 

55

 

 

 

—

 

Other

 

 

1

 

 

 

—

 

 

 

(4

)

Provision (benefit) for income taxes

 

$

1,018

 

 

$

194

 

 

$

(2,443

)

 

The net deferred income tax asset (liability) recorded in the Consolidated Balance Sheets results from differences between financial statement and tax reporting of income and deductions. A summary of the composition of the Company's net deferred income tax asset (liability) follows:

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

Depreciation

 

$

(2,931

)

 

$

(3,117

)

Accrued compensation

 

 

237

 

 

 

309

 

Goodwill

 

 

(607

)

 

 

(224

)

Prepaid pension asset

 

 

(1,399

)

 

 

(1,355

)

Accrued pension liability

 

 

232

 

 

 

245

 

Accrued postretirement benefits

 

 

68

 

 

 

79

 

Compensated absences

 

 

531

 

 

 

567

 

Inventories

 

 

2,541

 

 

 

(10

)

Warranty liability

 

 

182

 

 

 

135

 

Accrued expenses

 

 

600

 

 

 

1,276

 

Equity-based compensation

 

 

328

 

 

 

230

 

Allowance for doubtful accounts

 

 

18

 

 

 

422

 

Operating lease assets

 

 

(1,694

)

 

 

(1,894

)

Operating lease liabilities

 

 

1,784

 

 

 

1,963

 

Acquisition costs

 

 

180

 

 

 

142

 

Intangible assets

 

 

187

 

 

 

236

 

New York State investment tax credit

 

 

1,030

 

 

 

1,066

 

Research and development tax credit

 

 

2,771

 

 

 

1,243

 

Research and development credit carryforward

 

 

—

 

 

 

367

 

Net operating loss carryforwards

 

 

182

 

 

 

2,205

 

Capital loss carryforward

 

 

4,211

 

 

 

4,211

 

Other

 

 

(238

)

 

 

(129

)

 

 

 

8,213

 

 

 

7,967

 

Less: Valuation allowance

 

 

(5,241

)

 

 

(5,277

)

Total

 

$

2,972

 

 

$

2,690

 

 

 

Deferred income taxes include the impact of state investment tax credits of $236, which expire from 2025 to 2037 and state investment tax credits of $794, which have an unlimited carryforward period.

In assessing the realizability of deferred tax assets, management considers, within each taxing jurisdiction, whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the consideration

of the weight of both positive and negative evidence, management determined that a portion of the deferred tax assets as of March 31, 2024 and 2023 related to certain state investment tax credits and the capital loss related to Energy Steel would not be realized, and recorded a valuation allowance of $5,241 and $5,277, respectively.

The Company files federal and state income tax returns in several domestic and international jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. The Company is subject to U.S. federal examination for tax years 2020 through 2023 and examination in state tax jurisdictions for tax years 2019 through 2023. The Company is subject to examination in the People's Republic of China for tax years 2020 through 2023 and in India for tax years 2018 through 2022. The liability for unrecognized tax benefits was $0 at each of March 31, 2024 and 2023.