v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Summary of (Loss) Income Before Income Tax Expense by Jurisdiction

The following table summarizes the (loss) income before income tax expense by jurisdiction for the period indicated (in thousands):

 

 

March 31,
2026

 

 

March 31,
2025

 

Pre-tax book income (loss)

 

 

 

 

 

Domestic

$

(13,841

)

 

$

(2,486

)

Foreign

 

—

 

 

 

—

 

Total

$

(13,841

)

 

$

(2,486

)
Summary of Reconciliation of Statutory Federal Rate and Effective Rate for Operations

A reconciliation of the statutory federal rate and the effective rate, for operations, is as follows for the years ended March 31, 2026 and 2025 (in thousands, except percentages):

 

 

March 31,
2026

 

 

 

 

March 31,
2025

 

 

 

Income taxes (benefit) at statutory federal rate

$

(2,907

)

 

21.0

%

 

$

(522

)

 

21.0

%

State and local taxes, net of federal benefit (1)

 

(21

)

 

0.2

%

 

 

(31

)

 

1.2

%

 Tax credits

 

(179

)

 

1.3

%

 

 

(321

)

 

12.9

%

 Changes in valuation allowance

 

152

 

 

(1.1

)%

 

 

(141

)

 

5.7

%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

Change in fair value of derivative liability

 

568

 

 

(4.1

)%

 

 

—

 

 

0.0

%

 Stock-based compensation

 

55

 

 

(0.4

)%

 

 

75

 

 

(3.0

)%

Financing fees

 

156

 

 

(1.1

)%

 

 

—

 

 

0.0

%

Other

 

 

 

 

 

 

 

 

 

 Removal of federal net operating losses and research development credits

 

2,126

 

 

(15.4

)%

 

 

867

 

 

(34.9

)%

 Other true-ups

 

(7

)

 

0.0

%

 

 

(21

)

 

1.0

%

Changes in unrecognized tax benefits

 

59

 

 

(0.4

)%

 

 

96

 

 

(3.9

)%

Provision for income taxes

$

2

 

 

(0.0

)%

 

$

2

 

 

0.0

%

 

(1) State taxes in California comprise the majority (greater than 50%) of the tax effect in this category.

For the years ended March 31, 2026 and 2025, federal and state income tax payments were insignificant and therefore are not presented in disaggregated detail.
Summary of Net Deferred Tax Assets Significant components of the Company’s net deferred tax assets are as follows as of March 31, 2026 and 2025 (in thousands, except percentages):

 

March 31,
2026

 

 

March 31,
2025

 

Deferred tax assets:

 

 

 

 

 

Amortization

$

861

 

 

$

1

 

Section 174 R&D capitalization

 

1,730

 

 

 

2,380

 

Accrued expenses and reserves

 

78

 

 

 

132

 

Operating lease liability

 

99

 

 

 

207

 

Stock-based compensation

 

342

 

 

 

336

 

Other, net

 

4

 

 

 

5

 

Total deferred tax assets

 

3,114

 

 

 

3,061

 

Valuation allowance

 

(2,997

)

 

 

(2,807

)

     Net deferred tax assets

$

117

 

 

$

254

 

Deferred tax liabilities:

 

 

 

 

 

Operating lease right-of-use assets

 

(90

)

 

 

(191

)

Depreciation

 

(27

)

 

 

(63

)

     Total deferred tax liabilities

$

(117

)

 

$

(254

)

 

$

—

 

 

$

—