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Income Taxes
 3 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s net operating losses (“NOLs”) generated after March 31, 2018 may be used as an indefinite-lived asset to offset its deferred tax liability but limited to 80% of future taxable income. The deferred tax liabilities as of June 30, 2022 are approximately $2.4 million for federal and $2.0 million for state.
For the year ended March 31, 2022, the Company had federal and state NOL carryforwards of approximately $330.7 million and $191.8 million, respectively. Of these federal and state NOLs, approximately $90.3 million and $154.5 million respectively, are expiring in various amounts from 2023 through 2038. The remaining federal and state NOLs of approximately $240.4 million and $37.3 million, respectively, have an indefinite life but the federal NOLs may only offset 80% of taxable income when used.
For the three months ended June 30, 2022, the Company incurred federal and state operating losses of approximately $16.2 million and $9.7 million, respectively, to offset future taxable income, of which $18.2 million can be carried forward indefinitely but can only offset 80% of taxable income when used.
The Company used a discrete effective tax rate method to calculate taxes for the three months ended June 30, 2022. The Company determined that applying an estimate of the annual effective tax rate would not provide a reasonable estimate as small changes in estimated “ordinary” loss would result in significant changes in the estimated annual effective tax rate. Accordingly, for the three months ended June 30, 2022, the Company recorded a total deferred tax expense of $0.2 million due to the inability to use some portion of federal and state NOL carryforwards against the deferred tax liability created by amortization of indefinite-lived intangibles.