XML 66 R19.htm IDEA: XBRL DOCUMENT
v3.25.2

Income Taxes | 12 Months Ended
--- | ---
Mar. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes For the year ended March 31, 2025, the Company had federal and state NOL carryforwards of approximately $275.1 million and $207.0 million respectively. Of these federal and state NOLs, approximately $34.0 million and $166.6 million, respectively, are expiring in various amounts from 2025 through 2037. The remaining federal and state NOLs of approximately $241.1 million and $40.3 million, respectively, have an indefinite life but the federal NOLs may only offset 80% of taxable income when used. For the year ended March 31, 2024, the Company incurred federal and state operating losses of approximately $307.3 million and $212.0 million, respectively, to offset future taxable income of which $241.1 million federal NOL and $42.9 million of state NOLs can be carried forward indefinitely but can only offset 80% of taxable income when used. The Company has net deferred tax assets, before applying the valuation allowance, of approximately $83.6 million and $83.5 million relating principally to the NOLs as of March 31, 2025 and 2024, respectively. Federal NOL carryforwards may be subject to limitations as a result of the change in ownership that occurred in the year ended March 31, 2015, as defined under Internal Revenue Code Section 382. State NOL carryforwards are subject to limitations which differ from federal law in that they may not allow the carryback of net operating losses and have shorter carryforward periods. Accounting Standards Codification Topic 740, Income Taxes, requires that a valuation allowance be recorded to reduce deferred tax assets when it is more likely than not that the tax benefit of the deferred tax assets will not be realized. The evaluation includes the consideration of all available evidence, both positive and negative, regarding historical operating results including recent years with reported losses, the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. In situations where a three-year cumulative loss condition exists, accounting standards limit the ability to consider projections of future results as positive evidence to assess the realizability of deferred tax assets. Since inception, the Company has mainly incurred tax losses which represents significant negative evidence toward the realizability of its deferred tax assets. Therefore, the Company continues to apply a full valuation allowance against its deferred tax assets as of March 31, 2025 and 2024, with the exception of the net deferred tax liability of approximately $6.6 million and $6.3 million, respectively, regarding indefinite-lived intangibles. For Fiscal 2025, analysis of the state NOL carryforwards revealed that most of them are not indefinite. The Company recorded $0.3 million of state deferred tax expense during the year March 31, 2025 and increased the state deferred tax liability by the same amount from the inability to use the state NOL carryforwards against the indefinite-lived intangible. For Fiscal 2024, the Company recorded $0.4 million of state deferred tax benefit during the year March 31, 2024 and increased the state deferred tax liability by the same amount from the inability to use the state NOL carryforwards against the indefinite-lived intangible. This valuation allowance has no effect on the Company’s ability to utilize the deferred tax assets to offset future taxable income, if generated. As required by U.S. GAAP, the Company will continue to assess the likelihood that the deferred tax assets will be realizable in the future and the valuation allowance will be adjusted accordingly. The tax benefits relating to any reversal of the valuation allowance on the net deferred tax assets in a future period will be recognized as a reduction of future income tax expense in that period. Net deferred tax assets and liabilities consist of the following as of March 31, 2025 and 2024 (in thousands):
| 2025 |  | 2024
Deferred tax asset |  |  |
Property and equipment | $ | 748 |  |  | $ | 503 |
Accrued expenses | 346 |  |  | 1,080 |
Deferred revenue | 26,852 |  |  | 12,828 |
Asset retirement obligations | 16 |  |  | 14 |
Net operating loss carryforward | 70,267 |  |  | 77,308 |
Operating lease liabilities | 1,529 |  |  | 1,437 |
Charitable contributions carryforward | 3 |  |  | 3 |
Stock compensation expense | 4,302 |  |  | 8,034 |
Total deferred tax asset | 104,063 |  |  | 101,207 |
Deferred tax liability |  |  |
Right of use assets | (1,345) |  |  | (1,189) |
Indefinite-lived intangible assets | (19,046) |  |  | (16,557) |
Total deferred tax liability | (20,391) |  |  | (17,746) |
Total deferred tax assets and liabilities | 83,672 |  |  | 83,461 |
Valuation allowance | (90,278) |  |  | (89,742) |
Net deferred tax assets and liabilities | $ | (6,606) |  |  | $ | (6,281) |
The components of the income tax expense for the years ended March 31, 2025 and 2024 are as follows (in thousands):
| 2025 |  | 2024 |  |
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  |
State | 1,567 |  |  | 772 |  |  |
Total current | 1,567 |  |  | 772 |  |  |
Deferred: |  |  |  |  |
Federal | 621 |  |  | 432 |  |  |
State | (296) |  |  | 409 |  |  |
Total deferred | 325 |  |  | 841 |  |  |
Total income tax expense | $ | 1,892 |  |  | $ | 1,613 |  |  |
The differences between the United States federal statutory tax rate and the Company’s effective tax rate for the years ended March 31, 2025 and 2024 are as follows (in thousands):
| 2025 |  | 2024 |  |
Statutory federal tax | $ | (1,991) |  |  | 21 | % |  | $ | (1,578) |  |  | 21 | % |  |  |  |
State income taxes, net of federal benefit | 952 |  |  | -10 | % |  | 1,023 |  |  | -14 | % |  |  |  |
Incentive stock option expense | (195) |  |  | 2 | % |  | (46) |  |  | 1 | % |  |  |  |
Other permanent differences | (61) |  |  | 1 | % |  | (11) |  |  | 0 | % |  |  |  |
162M executive compensation limit | 5,001 |  |  | -53 | % |  | 78 |  |  | -1 | % |  |  |  |
Change in valuation allowance - Federal | (1,692) |  |  | 18 | % |  | 1,866 |  |  | -25 | % |  |  |  |
Prior year adjustments | (122) |  |  | 1 | % |  | 281 |  |  | -3 | % |  |  |  |
| $ | 1,892 |  |  | -20 | % |  | $ | 1,613 |  |  | -21 | % |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration