INCOME TAXES |
3 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | NOTE 11 – INCOME TAXES
The Company determined that the provision for income taxes for the three months ended June 30, 2025, was immaterial to the consolidated financial statements.
The current tax provision and the deferred tax provision for the three months ended June 30, 2026 was $48,531 and $194,124, respectively.
The Company’s deferred tax assets as of June 30, 2026 and March 31, 2026 were comprised primarily of net operating loss carry forwards.
The Company records the tax provision for interim periods using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. The Company’s estimate of the annual effective tax rate is updated each quarter and the changes, if any, are reflected through a cumulative adjustment.
For the year ended March 31, 2027, the Company expects its effective tax rate to be approximately 25%.
As of June 30, 2026, the Company had a net operating loss carry forward (“NOL”) for federal and state income tax purposes of approximately $3,000,000 A majority of this is amount is pre-2018. NOLs generated pre-2018 can be carried forward for 20 years and post-2018 NOLs do not expire but are limited to offset up to 80% of taxable income in any future period.
Internal Revenue Code Section 382 (“Section 382”) imposes limitations on the availability of a company’s net operating losses after certain ownership changes occur. Section 382 limitation is based upon certain conclusions pertaining to the dates of ownership changes and the value of the Company on the dates of the ownership changes. It was determined that an ownership change occurred in October 2013, and March 2014. The amount of the Company’s net operating losses incurred prior to the ownership changes is limited based on the value of the Company on the date of the ownership change. Management has not determined the amount of net operating losses generated prior to the ownership change available to offset taxable income after the ownership change.
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