INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2026

Schedule of Components of Income Tax Expense (Benefit)

Income (loss) before income taxes as shown in the consolidated statements of income (loss) consists of the following:


	Year Ended March 31,
	2026		2025
Domestic	$	100,752	$	(4,791)
Foreign	(14,732)		(197)
Total	$	86,020	$	(4,988)

Income tax expense (benefit) attributable to pretax income (loss) consists of (in thousands):


	Year Ended March 31,
	2026		2025
Current:
Federal	$	153	$	—
State	247		166
Foreign	1,617		557
Total current	2,017		723
Deferred:
Federal	(399)		83
State	(53)		(17)
Foreign	(196)		(366)
Total deferred	(648)		(300)

Total	$	1,369	$	423

Schedule of Effective Income Tax Rate And Pretax Income (loss) Reconciliation

Income tax expense attributable to pretax income (loss) differed from the amounts computed by applying the U.S. Federal income tax rate of 21.0% to pretax income (loss) as follows (in thousands):


	Year Ended March 31, 2026
Rate Reconciliation Category	Total Amount		Rate (%)
Earnings Before Income Taxes	$	86,020
U.S. Federal Statutory Tax Rate (21.0%)	18,064		21.0	%
RECONCILING ITEMS:
1. State and Local Income Taxes, Net of Federal Effect1	112		0.1	%
2. Foreign Tax Effects
Detail by Jurisdiction:
Australia
Rate Differential	(1,472)		-1.7	%
Valuation allowance	3,742		4.4	%
Other	993		1.2	%
Other Foreign Jurisdictions	822		0.9	%
3. Effect of Changes in Tax Laws or Rates Enacted in Current Period	—		0.0	%
4. Effect of Cross-Border Tax Laws
Branch Income	430		0.5	%
5. Tax Credits
Research & Development Credit	(30)		0.0	%
Foreign Tax Credit	(810)		-1.0	%
6. Changes in Valuation Allowances	3,204		3.7	%
7. Nontaxable or Nondeductible Items
Bargain Purchase Gain	(23,350)		-27.1	%
Other Permanent Items	(135)		-0.2	%
8. Changes in Unrecognized Tax Benefits	—		0.0	%
9. Other Adjustments
Other	(201)		-0.2	%
Total Income Tax Expense	$	1,369	1.6	%

1State taxes in Florida and Pennsylvania represent the majority (greater than 50%) of the tax effect in this category.

The Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, prospectively beginning with the fiscal year ended March 31, 2026. The rate reconciliations for the fiscal years ended March 31, 2025 and March 31, 2024 are presented below in the format applicable before adoption:


	Year Ended March 31,
	2025				2024
Expected Federal income tax benefit U.S. statutory rate	$	(1,048)	21.0	%	$	(831)	21.0	%
Foreign rate differential	(101)		2.0	%	399		-10.1	%
State income taxes, net of federal benefit	(165)		3.3	%	(125)		3.2	%
Micro-captive insurance benefit	—		0.0	%	(306)		7.7	%
Change in valuation allowance	1,272		-25.5	%	1,909		-48.3	%
Income attributable to minority interest - Contrail	(140)		2.8	%	(217)		5.5	%

Other differences, net	605		-12.1	%	(100)		2.5	%
Income tax expense	$	423	-8.5	%	$	729	-18.5	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were comprised of the following (in thousands):


	Year Ended March 31,
	2026		2025
Net operating loss & attribute carryforwards	$	64,728	$	11,681
Accrued expenses	5,937		442
Unrealized losses on investments	1,839		1,540

Inventory	—		1,149


Lease liabilities	3,963		3,463

Investment in partnerships	1,455		—

Other deferred tax assets	4,847		1,753
Total deferred tax assets	82,769		20,028


Property and equipment	(14,697)		(1,651)
Long-term debt	(14,922)		—
Inventory	(4,475)		—
Right-of-use assets	(3,749)		(3,236)
Outside basis on Rex Airlines Pty Ltd	(18,345)		—
Capital gain deferment	(1,773)		(1,793)
Foreign intangible assets	(2,532)		(1,830)
Investment in partnerships	—		(2,159)
Other deferred tax liabilities	(1,726)		(403)
Total deferred tax liabilities	(62,219)		(11,072)

Net deferred tax assets	20,550		8,956

Less valuation allowance	(22,048)		(11,103)

Net deferred tax liabilities	$	(1,498)	$	(2,147)