v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF PROVISION FOR INCOME TAXES

Components of the provision for income taxes were (amounts in thousands):

 

For the Year Ended March 31 (in thousands)  2026   2025 
Current provision (benefit):          
Federal  $—   $— 
State and local   1,399    468 
Total current provision   1,399    468 
           
Deferred provision (benefit):          
Federal   10,335    3,871 
State and local   208    (76)
Total deferred provision   10,543    3,795 
           
Provision for income taxes  $11,942   $4,263 
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

A reconciliation between the Company’s effective tax rate and the federal statutory rate for the year ended March 31, 2026 is as follows (amounts in thousands of dollars):

 

   Amount   Percent 
   2026 
   Amount   Percent 
U.S. Federal Statutory Tax Rate  $11,682    21.00%
State and Local Income Taxes, Net of Federal Income Tax Effect (a)   1,313    2.36%
Foreign Tax Effects   —    —%
Effect of Changes in Tax Law or Rates Enacted in the Current Period   —    —%
Effect of Cross-Border Tax Laws   —    —%
Tax Credits   —    —%
Federal R&D Credits   (360)   (0.65)%
Changes in Valuation Allowance   —    —%
Nontaxable or Nondeductible Items   —    —%
Non-deductible change in fair value of derivative financial instruments   (1,650)   (2.96)%
Officer’s compensation   1,143    2.05%
Other   (186)   (0.33)%
Changes in Unrecognized Tax Benefits   —    —%
Other Adjustments   —    —%
Other   —    —%
Effective Tax Rate  $11,942    21.47%

 

(a)State taxes in New Jersey and Florida made up the majority (greater than 50 percent) of the tax effect in this category.

 

A reconciliation between the Company’s effective tax rate and the federal statutory rate for the year ended March 31, 2025 is as follows:

 

For the Year Ended March 31 (in thousands)  2025 
Federal income tax rate  $(11)
State and local taxes, net of federal benefit   293 
Non-deductible change in fair value of derivative financial instruments   3,969 
Non-deductible change in fair value of stock-based liabilities   — 
Other permanent items   17 
Prior year deferred true-up   110 
Tax credits   (115)
Change in valuation allowance   — 
Effective tax rate  $4,263 
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES

The major components of deferred tax assets and liabilities as of March 31, 2026 and 2025 are as follows (amounts in thousands of dollars):

 

As of March 31 (in thousands)  2026   2025 
Deferred tax assets:          
Lease Liability  $659   $865 
Sec. 174 R&E Capitalization   123    3,104 
Allowance for Expected Credit Losses   352    92 
Net Operating Loss   2,489    10,664 
R&D Credit   5,708    5,348 
Deferred tax assets   9,331    20,073 
           
Deferred tax liabilities:          
Fixed Assets   (218)   (98)
Right of Use Asset   (669)   (898)
Intangible Assets   (621)   (711)
Deferred tax liabilities   (1,508)   (1,707)
           
Net deferred tax asset  $7,823   $18,366 
SCHEDULE OF INCOME TAXES PAID

The amounts of cash income taxes paid by the Company were as follows:

 

(in thousands)  March 31, 2026 
Federal  $— 
State and Local:     
Florida   435 
New Jersey   575 
New York   108 
All Other States   33 
Income taxes, net of amounts refunded  $1,151