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Income Taxes
 6 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

9. INCOME TAXES

 

We calculate income tax expense based upon an annual effective tax rate forecast, which includes estimates and assumptions. We recognized income tax expense of $20 thousand and $34 thousand for the three and six months ended September 30, 2025, respectively. We recognized income tax expense of $6 thousand and $13 thousand for the three and six months ended September 30, 2024, respectively. Our income tax expense is attributable to taxable income earned in India relating to transfer pricing as well as state income taxes in the U.S.

 

We have recorded income tax expense of $34 thousand for the six months ended September 30, 2025 related to U.S. state and foreign income taxes. We have not recorded tax benefits on our U.S. deferred tax assets because we continue to provide a valuation allowance for all our U.S. net deferred tax assets as of September 30, 2025 as it is more likely than not that the assets will not be recovered based on an insufficient history of earnings.

 

Our effective tax rate for the three and six months ended September 30, 2025 was (0.5)% and (0.5)%, respectively. Our effective tax rate for the three and six months ended September 30, 2024 was (0.5)% and (0.3)%, respectively.

 

On July 4, 2025, the President signed the One Big Beautiful Bill Act (“OBBBA”; Pub. L. 119-21) into law. The Act introduces significant changes to the Internal Revenue Code. The company evaluated the Act and concluded it will not have a material impact on its condensed consolidated financial statements.

 

OBBBA retains the 21% federal corporate income tax rate, restores and makes permanent the 100% bonus depreciation for “qualified property” acquired on or after January 20, 2025, and permits immediate expensing of domestic research and experimental costs.