v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of components of (loss) income before income taxes and related income tax (benefit) expense

The following table presents the components of (loss) income before income taxes and the related income tax (benefit) expense (in thousands):

 

 

 

For the Fiscal Year
Ended March 31,

 

 

 

2026

 

 

2025

 

Net (loss) income before income taxes

 

 

 

 

 

 

    U.S. operation

 

$

(11,394

)

 

$

3,677

 

    India operations

 

 

(106

)

 

 

193

 

Total (loss) income before income taxes

 

$

(11,500

)

 

$

3,870

 

Income tax expense:

 

 

 

 

 

 

Current

 

 

 

 

 

 

U.S. federal

 

$

—

 

 

$

—

 

U.S. state and local (a)

 

 

25

 

 

 

62

 

India

 

 

43

 

 

 

51

 

Total current income tax expense

 

$

68

 

 

$

113

 

Deferred:

 

 

 

 

 

 

U.S. federal

 

 

(2,498

)

 

 

—

 

U.S. state and local (b)

 

 

(338

)

 

 

—

 

India

 

 

(75

)

 

 

(7

)

Total deferred income tax (benefit) expense

 

 

(2,911

)

 

 

(7

)

Total income tax (benefit) expense

 

$

(2,843

)

 

$

106

 

 

(a)
Taxes in Texas make up the majority of the current U.S. state and local income tax (benefit) expense.
(b)
Taxes in Illinois, California, New York State, Colorado, New Jersey and New York City make up the majority of the deferred U.S. state and local income tax (benefit) expense.
Schedule of income taxes paid (net of refunds received) Income taxes paid (net of refunds received) were as follows (in thousands):

 

 

 

For the Fiscal Year
Ended March 31,

 

.

 

2026

 

 

2025

 

Jurisdiction:

 

 

 

 

 

 

    U.S. federal

 

$

—

 

 

$

—

 

    U.S. state and local:

 

 

 

 

 

 

Texas

 

 

17

 

 

 

3

 

India

 

 

56

 

 

 

31

 

Total income tax paid

 

$

73

 

 

$

34

 
Schedule of united states statutory federal tax rate is reconciled with actual tax expense (benefit)

The expected tax expense (benefit) based on the United States statutory federal tax rate is reconciled with actual tax expense (benefit) as follows (in thousands):

 

 

 

For the Year Ended March 31,

 

 

 

2026

 

 

2025

 

Expected U.S. federal statutory income tax

 

$

(2,415

)

 

 

21.0

%

 

$

813

 

 

 

21.0

%

U.S. state and local income taxes, net of federal benefit (c)

 

 

(318

)

 

 

2.7

%

 

 

49

 

 

 

1.3

%

India vs. U.S. federal statutory tax rate difference

 

 

(9

)

 

 

0.1

%

 

 

4

 

 

 

0.1

%

Change in U.S. federal valuation allowance

 

 

(113

)

 

 

1.0

%

 

 

(1,663

)

 

 

(43.0

)%

Nontaxable or nondeductible items:

 

 

 

 

 

 

 

 

 

 

 

 

Nondeductible acquisition-related costs

 

 

210

 

 

 

(1.8

)%

 

 

—

 

 

 

—

%

Change in fair value of contingent consideration

 

 

199

 

 

 

(1.7

)%

 

 

—

 

 

 

—

%

Nondeductible meals and entertainment

 

 

14

 

 

 

(0.1

)%

 

 

8

 

 

 

0.2

%

Adjustments to deferred tax assets

 

 

(411

)

 

 

3.5

%

 

 

895

 

 

 

23.1

%

Income tax (benefit) expense

 

$

(2,843

)

 

 

24.7

%

 

$

106

 

 

 

2.7

%

 

(c)
Taxes in Texas, Illinois, California, New York State, Colorado, New Jersey and New York City make up the majority of the effect of the U.S. state and local tax category.
Schedule of components of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in thousands):

 

 

 

For the Fiscal Year
Ended March 31,

 

 

 

2026

 

 

2025

 

Deferred tax assets:

 

 

 

 

 

 

    Net operating loss carryforwards

 

$

19,221

 

 

$

16,216

 

Stock-based compensation

 

 

2,321

 

 

 

2,198

 

Intangible assets

 

 

370

 

 

 

3,857

 

Accrued liabilities

 

 

461

 

 

 

442

 

Capital loss carryforwards

 

 

4,689

 

 

 

4,637

 

Non-deductible interest expense

 

 

4,175

 

 

 

3,741

 

Right of use liability

 

 

96

 

 

 

109

 

Bad debt reserve

 

 

352

 

 

 

73

 

Charitable contribution carryforwards

 

 

19

 

 

 

21

 

Total deferred tax assets before valuation allowance

 

 

31,704

 

 

 

31,294

 

Less: Valuation allowance

 

$

(31,355

)

 

$

(31,141

)

Total deferred tax assets after valuation allowance

 

 

349

 

 

 

153

 

Deferred tax liabilities:

 

 

 

 

 

 

Right of use asset

 

 

(90

)

 

 

(102

)

Fixed assets

 

 

(164

)

 

 

(30

)

Total deferred tax liabilities

 

 

(254

)

 

 

(132

)

Net deferred tax asset

 

$

95

 

 

$

21

 
Schedule of Reconciliation of Unrecognized Tax Positions

A reconciliation of our unrecognized tax positions is as follows (in thousands):

 

 

 

For the Fiscal Year
Ended March 31,

 

 

 

2026

 

 

2025

 

    Balance at beginning of year

 

$

—

 

 

$

—

 

Additions based on tax positions related to the current year

 

 

 

 

 

 

Additions for tax positions of prior years

 

 

—

 

 

 

—

 

Reductions for tax positions of prior years

 

 

—

 

 

 

—

 

Settlements

 

 

—

 

 

 

—

 

State tax positions acquired in business combinations

 

 

49

 

 

 

—

 

Reductions due to lapse of statute of limitations

 

 

—

 

 

 

—

 

Balance at end of year

 

$

49

 

 

$

—