Income taxes (Tables)

12 Months Ended

Mar. 31, 2026

The provision for income taxes consisted of the following:


	March 31, 2026		March 31, 2025
	$		$
Current Provision
Federal	—		—
State	—		3
Total Current Provision	—		3

Deferred Provision
Federal	(1,492	)	(2,392	)
State	(208	)	(810	)
Total Deferred Provision	(1,700	)	(3,202	)

Total Provision for Income Taxes	(1,700	)	(3,199	)

Effective Income Tax Rate Reconciliation

During the current fiscal year the Company adopted ASU 2023-09 prospectively. See Note 2 for additional details on the adoption of ASU 2023-09. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended March 31, 2026 is as follows (in thousands, except for percentages):

	For the year ended
		March 31, 2026		March 31, 2026		March 31, 2025		March 31, 2025
		$				$
U.S. federal statutory rate		(1,993	)	21.00	%	(2,681	)	21.00	%
State taxes and local tax¹, net of federal income tax effect		(208	)	2.19	%	(770	)	6.03	%
Difference in foreign tax rates		—		0.00	%	(105	)	0.82	%
Tax credits		(318	)	3.35	%	(1,583	)	12.40	%
Change in valuation allowance		870		(9.17	)%	2,347		(18.39	)%
Nontaxable or nondeductible items:
Non-deductible stock-based compensation		133		(1.40	)%	—		(0.00	)%
Change in fair value of warrant liabilities		(189	)	1.99	%	(876	)	6.86	%
Other		1		(0.01	)%	468		(3.67	)%
Other adjustments		4		(0.03	)%	(1	)	0.00	%
Total tax (benefit) expense		(1,700	)	17.92	%	(3,199	)	25.06	%

¹ New Jersey and California account for 100% of the tax effect in this category.

Cash Paid for Income Taxes, Net of Refunds Received

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended March 31, 2026 is as follows (in thousands):

			March 31, 2026
Federal			—
State
New Jersey			8
California			4
Pennsylvania			—
Other States			—
Cash paid for income taxes, net of refunds received			12

Deferred Tax Assets and Liabilities

The table below presents the effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of March 31, 2026 and 2025:


	March 31, 2026			March 31, 2025
		$			$
Deferred income tax assets
Tax losses carried forward		51,132			43,049
Research and development expenses		7,434			10,298
Property, plant and equipment		—			—
Intangible assets		232			206
Net federal investment tax credits		2,882			2,882
Other accruals and other		215			131
Orphan drug credit		1,900			1,583
Total deferred income tax assets		63,795			58,779
Valuation allowance		(52,846	)		(49,530	)
Total deferred income tax assets, net of valuation allowance		10,949			9,249

Deferred income tax liabilities
Intangible assets		(11,561	)		(11,561	)
Total deferred tax liabilities		(11,561	)		(11,561	)

Net deferred tax liabilities		(612	)		(2,312	)