v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) for the years ended March 31, 2026 and 2025, were as follows:
Year Ended March 31,
(Dollars in thousands)20262025
Current provision expense (benefit)
Federal$7 $— 
State and local
207 80 
Deferred provision expense (benefit)
Federal$35,860 $6,370 
State and local
105 743 
Valuation allowance
(35,965)(7,113)
Income tax expense (benefit)
$214 $80 
Schedule of Effective Income Tax Rate Reconciliation A reconciliation between the Federal statutory income tax rate of 21% to the effective income tax rate of negative 0.13% and negative 11.07% for the years ended March 31, 2026 and 2025, respectively, are shown below:
Year Ended
March 31, 2026
(Dollars in thousands)Amount% of Earnings (Loss) before Tax
Earnings before income taxes (EBT)$(164,516)
US federal tax(34,548)21.00 %
State and local income taxes, net of federal income tax effect
Texas164 (0.10)%
Changes in valuation allowance35,964 (21.86)%
Nontaxable or nondeductible items
Goodwill and intangible assets impairment651 (0.40)%
Warrant/conversion derivative(1,977)1.20 %
Other48 (0.02)%
Other adjustments(88)0.05 %
Effective tax rate$214 (0.13)%
(Dollars in thousands)Year Ended
March 31, 2025
Expected statutory income tax expense (benefit)$(152)
Amounts not deductible for income tax - goodwill impairment775 
Amounts not deductible for income tax - other1,448 
Amounts attributable to non-taxable flow-through entities5,122 
Return to provision adjustment3,201 
Change in valuation allowance(10,314)
Income tax expense$80 
Schedule of Deferred Tax Assets and Liabilities
The components of gross deferred tax assets and gross deferred tax liabilities as of March 31, 2026 and 2025, are as follows (included in other assets):
(Dollars in thousands)March 31, 2026March 31, 2025
Deferred income tax assets:
Passthrough differences - temporary$46,840 $30,112 
Loss on arbitration14,289 — 
Share-based compensation
4,400 4,089 
Net operating loss28,578 24,296 
Other
517 163 
Non-current deferred income tax assets94,624 58,660 
Deferred income tax liabilities:
Other— — 
Non-current deferred income tax liabilities— — 
Less: valuation allowance94,624 58,660 
Total deferred income tax liability$— $—