Income Taxes |
3 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Income Taxes [Abstract] | |||
| INCOME TAXES |
The effective income tax rate for the three months ended June 30, 2026 and 2025 was a provision of 9.0% on income before provision for income taxes of $718,670and a provision of 0% on a loss before provision for income taxes of $654,618, respectively. The effective income tax rate for the three months ended June 30, 2026 was less than the statutory rate, due principally to the utilization of net operating loss and general business tax credits carryforwards, as well as the impact of maintaining a full valuation allowance on the Company’s deferred tax assets, net. The provision for income taxes of $ for the three months ended June 30, 2025 was principally attributable to the loss before provision for income taxes and the impact of maintaining a full valuation allowance on the Company’s deferred tax assets, net.
The Company has previously recorded liabilities for underpayment of income taxes and related interest and penalties for uncertain tax positions based on the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. At June 30, 2026, the amount included in corporate income taxes receivable is a liability of $177,618, inclusive of penalties and interest. This amount is unchanged from March 31, 2026.
The One Big Beautiful Bill Act (the “Act”) was signed into law on July 4, 2025. The Act contains significant tax law changes with various effective dates affecting business taxpayers. Among the tax law changes that may impact the Company relate to the timing of certain tax deductions including depreciation expense, research and development expenditures and interest expense. Based upon the Company’s preliminary analysis, we do not anticipate a material effect on the financial statements for the fiscal year ending March 31, 2027. |