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INCOME TAXES | 12 Months Ended
--- | ---
Mar. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES A reconciliation of the Company’s effective tax rate to the United States federal income tax rate is as follows:
| March 31,
| 2022 |  | 2021 |  | 2020
Federal statutory rate | 21.0 | % |  | 21.00 | % |  | 21.00 | %
Permanent differences | (1.51) |  |  | (2.29) |  |  | (0.88) |
State taxes, net of federal benefits | 8.85 |  |  | 3.12 |  |  | 1.73 |
Change in valuation allowance | (42.85) |  |  | (18.26) |  |  | (22.79) |
Interest expense | (1.33) |  |  | — |  |  | — |
Warrant mark-to-market | 10.11 |  |  | — |  |  | — |
Stock compensation | 5.64 |  |  | (1.02) |  |  | — |
Other deferred adjustments | 0.09 |  |  | (2.55) |  |  | — |
Other | — |  |  | — |  |  | 0.94 |
Total | — | % |  | — | % |  | — | %
The components of the Company’s deferred taxes are as follows (in thousands):
| As of March 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 45,807 |  |  | $ | 24,960 |
Charitable contributions | 723 |  |  | 155 |
Interest expense | 3,599 |  |  | 3,330 |
Lease Liabilities | 9,259 |  |  | — |
UNICAP | 6,340 |  |  | 3,048 |
Stock compensation | 4,280 |  |  | 1,379 |
Accruals and other | 4,497 |  |  | 3,861 |
Total deferred tax assets | 74,505 |  |  | 36,733 |
Valuation allowance | (65,892) |  |  | (36,621) |
Net deferred tax assets | 8,613 |  |  | 112 |
Depreciation | (472) |  |  | (112) |
Lease Right-of-Use Asset | (8,141) |  |  | — |
Total deferred tax liabilities | (8,613) |  |  | (112) |
Net deferred tax assets | $ | — |  |  | $ | — |
As of March 31, 2022, the Company had federal net operating loss carryforwards (“NOLs”) of approximately $190.1 million, of which $60.5 million begin to expire in 2031 and $129.7 million can be carried forward indefinitely. The Company also had state NOLs of approximately $110.0 million which begin to expire in 2031. As of March 31, 2021, the Company had federal net operating loss carryforwards (“NOLs”) of approximately $112.3 million, of which $60.5 million begin to expire in 2031 and $51.9million can be carried forward indefinitely. The Company also had state NOLs of approximately $41.1 million which begin to expire in 2031. Net operating loss and tax credit carry-forwards are subject to review and possible adjustment by the IRS and may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50% as defined under Sections 382 and 383 in the Internal Revenue Code, which could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the Company’s value immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has completed a formal study through March 31, 2022 to determine if any ownership changes within the meaning of IRC Section 382 and 383 have occurred. As a result of the study, it was determined that BarkBox, Inc. experienced an ownership change on July 8, 2014; however, the limitation from the ownership change will not result in any of the NOLs or tax credits expiring unutilized. The Company has not completed a formal study related to Northern Star Acquisition Corp. and its separate NOLs from periods prior to the Merger. However, any potential ownership change is not expected to result in any of the NOLs expiring unutilized. The Company has recorded a valuation allowance against its deferred tax assets in each of the years ended March 31, 2022 and 2021, because the Company’s management believes that it is more likely than not that these assets will not be realized. As a result of generating additional net operating losses, the valuation allowance increased by approximately $29.3 million, from $36.6 million as of March 31, 2021 to $65.9 million as of March 31, 2022. The Company had no unrecognized tax benefits or related interest and penalties accrued for the years ended March 31, 2022, 2021 and 2020 . The Company will recognize interest and penalties related to uncertain tax positions in income tax expense. The Company is subject to U.S. federal income tax and state income tax. The statute of limitations for assessment by the IRS and state tax authorities is open for the tax years since 2017; currently, no federal or state income tax returns are under examination by the respective taxing authorities. To the extent the Company has tax attributes carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the IRS and the state tax authorities to the extent utilized in a future period. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide relief as a result of the COVID-19 outbreak. The Company has examined the impact of the CARES Act on the business and none of the provisions have a significant impact on the Company.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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