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Income Taxes
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6 — Income Taxes

The income tax provision consisted of the following for the fiscal years ended March 31, 2025, 2024 and 2023:

 

 

 

2025

 

 

2024

 

 

2023

 

Current — Federal

 

$

23,985,000

 

 

$

17,463,000

 

 

$

14,745,000

 

Current — State

 

 

6,833,000

 

 

 

4,707,000

 

 

 

5,357,000

 

Subtotal

 

 

30,818,000

 

 

 

22,170,000

 

 

 

20,102,000

 

Deferred — Federal

 

 

(4,594,000

)

 

 

(2,828,000

)

 

 

(1,321,000

)

Deferred — State

 

 

(565,000

)

 

 

(493,000

)

 

 

(592,000

)

Subtotal

 

 

(5,159,000

)

 

 

(3,321,000

)

 

 

(1,913,000

)

 

 

$

25,659,000

 

 

$

18,849,000

 

 

$

18,189,000

 

 

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2025, 2024 and 2023:

 

 

 

2025

 

 

2024

 

 

2023

 

Income taxes at federal statutory rate

 

$

25,373,000

 

 

$

19,971,000

 

 

$

17,757,000

 

State income taxes, net of federal benefit

 

 

4,937,000

 

 

 

3,369,000

 

 

 

3,890,000

 

Uncertain tax positions

 

 

9,000

 

 

 

(22,000

)

 

 

(77,000

)

Stock-based compensation and §162(m) limitation

 

 

(3,687,000

)

 

 

(3,961,000

)

 

 

(3,098,000

)

Permanent items and tax credits

 

 

(568,000

)

 

 

(480,000

)

 

 

(384,000

)

Adjustments to returns as filed

 

 

(420,000

)

 

 

67,000

 

 

 

163,000

 

Valuation allowance

 

 

15,000

 

 

 

(95,000

)

 

 

(62,000

)

 

 

$

25,659,000

 

 

$

18,849,000

 

 

$

18,189,000

 

 

Deferred tax assets and liabilities at March 31, 2025 and 2024 are, as follows:

 

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Accrued liabilities not currently deductible

 

$

8,363,000

 

 

$

7,181,000

 

Allowance for expected credit losses

 

 

1,947,000

 

 

 

1,076,000

 

Stock-based compensation

 

 

2,808,000

 

 

 

2,489,000

 

Deferred lease liability

 

 

7,094,000

 

 

 

7,917,000

 

Capitalized research and development expenditures

 

 

5,826,000

 

 

 

4,124,000

 

Other

 

 

541,000

 

 

 

497,000

 

Deferred tax assets

 

 

26,579,000

 

 

 

23,284,000

 

Deferred tax liabilities:

 

 

 

 

 

 

Excess of book over tax basis of fixed assets

 

 

(4,645,000

)

 

 

(5,758,000

)

Intangible assets

 

 

(4,905,000

)

 

 

(4,922,000

)

Right-of-use asset

 

 

(5,267,000

)

 

 

(6,075,000

)

Accrued revenue

 

 

(2,350,000

)

 

 

(2,284,000

)

Other

 

 

(456,000

)

 

 

(464,000

)

Total deferred tax liabilities

 

 

(17,623,000

)

 

 

(19,503,000

)

Valuation allowance

 

 

(252,000

)

 

 

(236,000

)

Deferred tax liabilities

 

 

(17,875,000

)

 

 

(19,739,000

)

Net deferred tax assets (liabilities)

 

$

8,704,000

 

 

$

3,545,000

 

 

 

 

 

 

 

 

 

Prepaid income taxes are $0 at March 31, 2025, and $2,169,000 at March 31, 2024.

A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows:

 

Balance as of March 31, 2024

 

$

145,000

 

Additions based on tax positions related to the current year

 

 

—

 

Additions for tax positions of prior years

 

 

65,000

 

Reductions for tax positions related to the current year

 

 

—

 

Reductions for tax positions of prior years

 

 

(47,000

)

Balance as of March 31, 2025

 

$

163,000

 

 

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the fiscal years ended March 31, 2025, 2024 and 2023, the Company recognized approximately $(9,000), $(14,000) and $(13,000) in interest and penalties, respectively. As of March 31, 2025, 2024 and 2023, accrued interest and penalties related to uncertain tax positions were $31,000, $40,000 and $54,000, respectively.

The tax fiscal years from 2019-2024 remain open to examination by the major taxing jurisdictions to which the Company is subject.