v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Provision
The components of the income tax provision consist of the following (in thousands):
Year Ended March 31,
202620252024
Current taxes
Federal$— $343 $490 
State14 93 408 
Total current income tax provision
14 436 898 
Deferred income tax provision (benefit)
Federal(45)4,448 412 
State(42)800 (119)
Total deferred taxes(87)5,248 293 
Total income tax provision
$(73)$5,684 $1,191 
Schedule of Effective Income Tax Rate Reconciliation
We adopted ASU 2023-09 on a prospective basis in fiscal year 2026. The reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands):
Year Ended March 31, 2026
$
%
US federal statutory income tax rate(12,046)21.00 %
Domestic federal
Nontaxable and nondeductible items
Stock-based compensation203 (0.35)%
Executive Compensation103 (0.18)%
Goodwill Impairment5,598 (9.76)%
Other(77)0.14 %
Excess tax benefits on share-based payments(1)— %
Changes in valuation allowances6,169 (10.76)%
Domestic state and local income taxes, net of federal effect(22)0.04 %
Total$(73)0.13 %
The differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:
Year Ended March 31,
20252024
Federal rate on income before taxes21.0 %21.0 %
State income taxes, net of federal tax benefit45.0 %(4.9)%
Non-deductible executive compensation301.7 %(28.2)%
Other permanent differences9.5 %(1.7)%
Restricted stock shortfall adjustment(63.5)%(4.4)%
Deferred tax adjustments(62.9)%(0.8)%
Taxes payable adjustments(61.9)%— %
Valuation allowance(1155.2)%— %
Other(2.0)%— %
Total effective tax rate(968.3)%(19.0)%
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows (in thousands):
March 31,
20262025
Deferred tax assets:
Accrued sales tax liability
$4,645 $5,101 
Other accrued expenses
101 200 
Deferred stock compensation126 425 
Bad debt reserves and inventory write-downs902 227 
Capitalized research and development costs
3,942 3,201 
Lease liabilities
136 250 
    Net operating loss carryforward9,280 3,431 
Total deferred tax assets19,132 12,835 
Deferred tax liabilities:
Tax accounting method change
(178)(349)
Intangible assets
(1,307)(1,921)
Property and equipment
(2,606)(3,181)
Right of use assets
(131)(242)
Total deferred tax liabilities
(4,222)(5,693)
Valuation allowance(15,085)(7,405)
Total net deferred tax (liability) asset $(175)$(263)
Schedule of Income before Income Tax, Domestic and Foreign Outlined below are the tax attribute balances remaining as of March 31, 2026 (in thousands).
PetCareRx Tax Attributes AcquiredTotalSec. 382 limited utilizationAttributes for which a deferred tax asset is recordedExpiration
Federal net operating losses - limited carryover$85,454 $83,300 $2,154  Beginning in FY 2024
Federal net operating losses - unlimited carryover$10,501 $— $10,501  None
Disallowed business interest expense carryover$1,855 $— $1,855  None
State net operating losses$11,040 $2,066 $8,974  Beginning in FY 2026
Tax Attributes as of March 31, 2025TotalSec. 382 limited utilizationAttributes for which a deferred tax asset is recordedExpiration
Federal net operating losses - limited carryover$77,052 $76,238 $814  Beginning in FY 2026
Federal net operating losses - unlimited carryover$12,739 $— $12,739  None
Disallowed business interest expense carryover$— $— $—  None
State net operating losses$11,884 $832 $11,052  Beginning in FY 2026
Tax Attributes as of March 31, 2026TotalSec. 382 limited utilizationAttributes for which a deferred tax asset is recordedExpiration
Federal net operating losses - limited carryover$73,357 $72,543 $814 Beginning in FY 2027
Federal net operating losses - unlimited carryover$35,213 $— $35,213 None
Disallowed business interest expense carryover$— $— $— None
State net operating losses$34,279 $832 $33,447 Beginning in FY 2027
Schedule of Income Taxes Paid, Net of Refunds Received
A summary of income taxes paid, net of refunds received is as follows (in thousands):
Year Ended
March 31, 2026
US federal$— 
US state and local
Arizona3 
California(24)
Idaho(28)
Indiana(5)
New York8 
Oklahoma(6)
Tennessee4 
Texas84 
Other16 
Income taxes, net of amounts refunded$52