v3.26.1
INCOME TAXES
 12 Months Ended
Mar. 31, 2026
INCOME TAXES  
INCOME TAXES

NOTE 9. INCOME TAXES

The following table presents domestic and foreign income before income taxes for the fiscal years ended March 31:

​

​

​

​

​

​

​

​

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Domestic

​

$

13,899,426

​

$

11,905,345

Foreign

​

 

(2,744,884)

​

 

(2,033,224)

Income before income taxes

​

$

11,154,542

​

$

9,872,121

​

The provision (benefit) for income taxes consists of the following for the fiscal years ended March 31:

​

​

​

​

​

​

​

​

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Current income taxes:

 

​

  ​

 

​

  ​

U.S. federal

​

$

42,518

​

$

1,550,803

State and local

​

 

30,976

​

 

29,563

Foreign

​

 

927,561

​

 

93,161

Total current

​

 

1,001,055

​

 

1,673,527

Deferred income taxes:

​

 

​

​

 

​

U.S. federal

​

 

3,492,532

​

 

1,358,671

State and local

​

 

29,332

​

 

61,661

Foreign

​

 

(1,194,892)

​

 

(953,135)

Total deferred

​

 

2,326,972

​

 

467,197

Income tax expense

​

$

3,328,027

​

$

2,140,724

​

The Company has determined that undistributed earnings of certain non-U.S. subsidiaries will be reinvested for an indefinite period of time. The Company has both the intent and ability to indefinitely reinvest these earnings. Given its intent to reinvest these earnings for an indefinite period of time, the Company has not accrued a deferred tax liability on these earnings. A determination of an unrecognized deferred tax liability related to these earnings is not practicable.

A reconciliation of the statutory tax rate to the effective rate is as follows for the fiscal year ended March 31, 2026:

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Amount

  ​ ​ ​

Percentage

 

Federal income tax at statutory rate

​

$

2,342,454

 

21.0

%

State and local income taxes, net of federal income tax effect(1)

​

 

43,614

 

0.4

%

Foreign tax effects

​

 

​

 

​

​

United Kingdom

​

 

146,567

 

1.3

%

United Arab Emirates

​

 

129,506

 

1.2

%

Other

​

 

22,685

 

0.2

%

Effect of cross border tax laws

​

​

(24,633)

​

(0.2)

%

Nontaxable or nondeductible items

​

​

​

​

​

​

Executive compensation and share-based compensation

​

​

512,897

​

4.6

%

Other

​

​

15,197

​

0.1

%

Other adjustments

​

​

​

​

​

​

U.S. return to provision

​

​

129,944

​

1.2

%

Other

​

​

9,796

​

0.0

%

Actual income tax provision

​

$

3,328,027

 

29.8

%

(1)State taxes in California and New York made up the majority (greater than 50 percent) of the tax effect in this category.

A reconciliation of the statutory tax rate to the effective rate is as follows for the fiscal year ended March 31, 2025:

​

​

​

​

​

Federal income tax statutory rate

  ​ ​ ​

21.0

%

State and local income taxes, net of federal income tax benefit

 

1.6

%

Foreign subsidiary earnings

 

0.1

%

Remeasurement of deferred tax balances

​

(0.9)

%

Return to provision

 

(5.9)

%

Executive compensation

 

6.7

%

Share-based compensation

 

(1.0)

%

Other, net

 

0.1

%

Effective income tax rate

 

21.7

%

​

On July 4, 2025, the reconciliation bill, commonly referred to as the “One Big Beautiful Bill Act” (“OBBBA”), was signed into law in the U.S., introducing a broad range of tax reform provisions, including changes to interest deductibility, bonus depreciation, and various international provisions with multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The impact of the OBBBA tax legislation did not have a material impact on the consolidated financial statements during the fiscal year ended March 31, 2026, and is not expected to have a material impact in future periods.

The Company’s effective tax rate also may vary from period to period depending on, among other factors, the geographic and business mix of earnings and losses. These same and other factors, including history of pre-tax earnings and losses, are taken into account in assessing the ability to realize deferred tax assets.

Income tax payments by jurisdiction for the fiscal year ended March 31, 2026 were comprised of the following:

​

​

​

​

​

Income taxes paid:

  ​ ​ ​

​

  ​ ​ ​

U.S., federal

​

$

851,591

U.S., state and local

​

 

8,655

United Kingdom

​

 

376,358

Other

​

 

63,716

Total income taxes paid

​

$

1,300,320

​

Significant components of the Company’s deferred income tax liability as of March 31, 2026 and 2025 are as follows:

​

​

​

​

​

​

​

​

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Deferred tax assets:

 

​

  ​

 

​

  ​

Net operating loss carryforwards

​

$

2,126,553

​

$

683,621

Interest expense carryforwards

​

​

10,278,568

​

​

9,533,126

Lease liability

​

​

1,934,351

​

​

1,492,056

Compensation

​

 

220,045

​

 

318,789

Equity investments

​

 

153,994

​

 

155,027

Total deferred tax assets

​

 

14,713,511

​

 

12,182,619

Deferred tax liabilities:

​

 

​

​

 

​

Fixed assets and leasehold improvements

​

 

(105,337)

​

 

(68,074)

Intangible assets

​

 

(54,150,727)

​

 

(48,528,566)

Lease right of use

​

​

(1,761,331)

​

​

(1,322,937)

Fair value of swaps

​

 

(234,806)

​

 

(314,107)

Prepaid insurance

​

​

(47,907)

​

​

—

Unrealized foreign exchange gains

​

​

(174,780)

​

​

(82,866)

Branch earnings

​

​

(24,687)

​

​

(94,168)

Total deferred tax liabilities

​

 

(56,499,575)

​

 

(50,410,718)

Net deferred tax liabilities

​

$

(41,786,064)

​

$

(38,228,099)

​

As of March 31, 2026, the Company has income tax net operating loss carryforwards of $59,329,515. The Company has recorded a deferred tax asset of $2,126,553, reflecting the benefit of $59,329,515 in loss carryforwards. Such net operating loss carryforwards will expire as follows:

​

​

​

​

​

​

​

Federal

  ​ ​ ​

$

5,916,060

  ​ ​ ​

No expiration date

New York

  ​ ​ ​

​

46,917,852

  ​ ​ ​

2035-2046

California

​

 

3,421,549

 

2040-2046

Tennessee

​

​

1,203,036

​

2035-2041

United Arab Emirates

​

 

1,689,856

 

No expiration date

France

​

​

181,162

​

No expiration date

​

Tax Uncertainties

As of March 31, 2026, the Company has not recorded any unrecognized tax benefits.

Tax Audits

The Company and its eligible subsidiaries file a consolidated U.S. federal income tax return and applicable state and local income tax returns and non-U.S. income tax returns. The Company is subject to examination by federal, state and local, and foreign tax authorities. RMM’s Federal income tax returns for the years 2023 through 2025 are subject to examination by the Internal Revenue Service, and RMM’s state tax returns are subject to examination by the respective tax authorities for the years 2022 through 2025. Non-U.S. tax returns are subject to examination by the respective tax authorities for the years 2022 through 2025. The Company regularly assesses the likelihood of additional assessments by each jurisdiction and have established tax reserves that the Company believes are adequate in relation to the potential for additional assessments. Examination outcomes and the timing of examination settlements are subject to uncertainty. Although the results of such examinations may have an impact on the Company’s unrecognized tax benefits, the Company does not anticipate that such impact will be material to its consolidated financial position or results of operations. The Company does not expect to settle any material tax audits in the next twelve months.