 |
5. Income Taxes
Significant components of the provision (benefit) for income taxes are presented below:
|
March 31, 2002 |
March 31, 2001 |
March 31, 2000 |
|
 |
|
(in thousands)
|
| Current: |
|
|
|
| Federal |
$(1,638) |
$ (37) |
$112 |
| State |
- |
106 |
24 |
| Deferred: |
|
|
|
| Federal |
148 |
250 |
(22) |
| State |
216 |
(69) |
(5) |
|
|
|
$(1,274) |
$ 250 |
$109 |
|
 |
|
|
|
|
The reconciliation of the consolidated effective tax rate of the Company for the years ended March 31, 2002, 2001 and 2000 is as follows:
|
2002 |
2001 |
2000 |
|
|
|
(in thousands)
|
| Pretax income |
$ (4,668) |
$ 276 |
$128 |
|
|
| Statutory income tax rate |
$ (1,587) |
$96 |
$44 |
| State taxes, net of federal benefit |
(481) |
24 |
12 |
| Permanent differences |
35 |
134 |
151 |
| Net valuation allowance |
762 |
- |
- |
| Other |
(3) |
(4) |
(98) |
|
|
| Total provision |
$ (1,274) |
$ 250 |
$109 |
|
|
|
|
|
|
The Company's deferred tax assets are comprised of the following:
|
March 31, 2002 |
March 31, 2001 |
|
|
|
(in thousands)
|
| Allowance for doubtful accounts |
$ 151 |
$ 151 |
| Compensated absence accrual |
54 |
79 |
| Depreciation |
254 |
245 |
| Net operating loss carryforward |
808 |
130 |
| Other accruals |
340 |
257 |
| Valuation allowance |
(1,607) |
- |
|
|
|
$ - |
$ 862 |
|
|
|
|
|
Management has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets and has established a full valuation allowance for such assets, which are comprised principally of net operating loss carryforwards and various accruals. Management has evaluated that it is more likely than not that the deferred tax asset will not be realizable in the future; management reevaluates the positive and negative evidence periodically.
|
