XML 42 R35.htm IDEA: XBRL DOCUMENT
v3.24.3

Income Taxes | 6 Months Ended
--- | ---
Sep. 30, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | 25. Income taxes The Company's net loss before provision for income taxes for the period ended September 30, 2024 and September 30, 2023 were as follows:
Particulars |  |  |  | For the three months ended September 30, 2024 |  |  | For the three months ended September 30, 2023 |  |  | For the six months ended September 30, 2024 |  |  | For the six months ended September 30, 2023 |
Domestic |  |  |  |  | (19,101,833 | ) |  |  | (5,606,269 | ) |  |  | (45,372,274 | ) |  |  | (9,350,380 | )
Foreign |  |  |  |  | (2,910,836 | ) |  |  | (25,504,049 | ) |  |  | (24,986,089 | ) |  |  | (25,804,523 | )
Total |  |  |  |  | (22,012,669 | ) |  |  | (31,110,318 | ) |  |  | (70,358,363 | ) |  |  | (35,154,903 | )
The components of the provision for income taxes for the period ended September 30, 2024 and September 30, 2023 were as follows:
Particulars |  |  |  | For the three months ended September 30, 2024 |  |  | For the three months ended September 30, 2023 |  |  |  | For the six months ended September 30, 2024 |  |  | For the six months ended September 30, 2023 |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  |  |  | 4,214 |  |  |  | — |  |  |  |  | 17,147 |  |  |  | — |
Foreign |  |  |  |  | — |  |  |  | 50,135 |  |  |  |  | - |  |  |  | 72,077 |
|  |  |  |  | 4,214 |  |  |  | 50,135 |  |  |  |  | 17,147 |  |  |  | 72,077 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  |  |  | — |  |  |  | — |  |  |  |  | — |  |  |  | — |
Foreign |  |  |  |  | (185,478 | ) |  |  | (39,196 | ) |  |  |  | (91,761 | ) |  |  | (38,727 | )
|  |  |  |  | (185,478 | ) |  |  | (39,196 | ) |  |  |  | (91,761 | ) |  |  | (38,727 | )
Total provision for income taxes |  |  |  |  | (181,264 | ) |  |  | 10,939 |  |  | - |  |  | (74,614 | ) |  |  | 33,350 |
The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the period ended September 30, 2024 and September 30, 2023:
Particulars |  |  |  | For the three months ended September 30, 2024 |  |  | For the three months ended September 30, 2023 |  |  | For the six months ended September 30, 2024 |  |  | For the six months ended September 30, 2023 |
Federal statutory income tax rate |  |  |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
Non deductible expenses |  |  |  |  | (0.22 | %) |  |  | 0.14 | % |  |  | (0.25 | %) |  |  | (6.86 | %)
Valuation allowance |  |  |  |  | (20.54 | %) |  |  | (21.00 | %) |  |  | (20.93 | %) |  |  | (14.13 | %)
Foreign rate differential |  |  |  |  | (0.29 | %) |  |  | (0.24 | %) |  |  | (0.19 | %) |  |  | (0.18 | %)
Share warrants |  |  |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.00 | %
Other |  |  |  |  | 0.00 | % |  |  | 0.06 | % |  |  | (0.04 | %) |  |  | 0.08 | %
Total provision for income taxes |  |  |  |  | (0.05 | %) |  |  | (0.04 | %) |  |  | (0.41 | %) |  |  | (0.09 | %)
The components of the Company’s net deferred tax assets as of the period ended September 30, 2024 and year ended March 31, 2024 were as follows:
Particulars |  |  |  |  |  |  |  | As of September 30, 2024 |  |  | As of March 31, 2024 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards |  |  |  |  |  |  |  |  | 40,187,359 |  |  |  | 25,515,511 |
Unabsorbed depreciation carry forwards |  |  |  |  |  |  |  |  | 107,638 |  |  |  | 76,126 |
Retirement benefits |  |  |  |  |  |  |  |  | 77,213 |  |  |  | 72,349 |
Depreciation and amortization |  |  |  |  |  |  |  |  | 80,333 |  |  |  | 109,299 |
Others |  |  |  |  |  |  |  |  | 16,694 |  |  |  | 244,136 |
Total deferred tax assets |  |  |  |  |  |  |  |  | 40,469,236 |  |  |  | 26,017,421 |
Less: valuation allowance |  |  |  |  |  |  |  |  | (40,444,762 | ) |  |  | (25,995,368 | )
Deferred tax assets, net of valuation allowance |  |  |  |  |  |  |  |  | 24,475 |  |  |  | 22,053 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Intangibles on account of business combination |  |  |  |  |  |  |  |  | (40,975 | ) |  |  | (263,665 | )
Net deferred tax assets/ (liabilities) |  |  |  |  |  |  |  |  | (16,500 | ) |  |  | (241,612 | )
Movement in net deferred tax assets:
|  |  |  | As of March 31, 2024 |  |  | Recognized/ reversed through statements of operations |  |  | Impact of currency translation and acquisitions |  |  | As of September 30, 2024 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards |  |  |  |  | 25,515,511 |  |  |  | 14,671,848 |  |  |  | — |  |  |  | 40,187,359 |
Unabsorbed depreciation carry forwards |  |  |  |  | 76,126 |  |  |  | 31,512 |  |  |  | — |  |  |  | 107,638 |
Retirement benefits |  |  |  |  | 72,349 |  |  |  | 4,864 |  |  |  | — |  |  |  | 77,213 |
Depreciation and amortization |  |  |  |  | 109,299 |  |  |  | -28,966 |  |  |  | — |  |  |  | 80,333 |
Fair value changes on convertible notes |  |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Others |  |  |  |  | 244,136 |  |  |  | (227,442 | ) |  |  | — |  |  |  | 16,694 |
Less: valuation allowance |  |  |  |  | (25,995,368 | ) |  |  | (14,449,394 | ) |  |  | — |  |  |  | (40,444,762 | )
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intangibles on account of business combination |  |  |  |  | (263,665 | ) |  |  | 222,690 |  |  |  | — |  |  |  | (40,975 | )
Acquisitions |  |  |  |  | — |  |  |  | 635,965 |  |  |  | (635,965 | ) |  |  | — |
Deconsolidation |  |  |  |  | — |  |  |  | - |  |  |  | - |  |  |  | — |
Currency translation |  |  |  |  | — |  |  |  | (284,598 | ) |  |  | 284,598 |  |  |  | — |
Net deferred tax assets/ (liabilities) |  |  |  |  | (241,612 | ) |  |  | 576,479 |  |  |  | (351,367 | ) |  |  | (16,500 | )
Particulars |  |  |  | As of March 31, 2023 |  |  | Recognized/ reversed through statements of operations |  |  | Impact of currency translation and acquisitions |  |  | As of March 31, 2024 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards |  |  |  |  | 8,480,316 |  |  |  | 17,035,195 |  |  |  | — |  |  |  | 25,515,511 |
Unabsorbed depreciation carry forwards |  |  |  |  | 54,438 |  |  |  | 21,688 |  |  |  | — |  |  |  | 76,126 |
Retirement benefits |  |  |  |  | 56,603 |  |  |  | 15,746 |  |  |  | — |  |  |  | 72,349 |
Depreciation and amortization |  |  |  |  | 50,918 |  |  |  | 58,381 |  |  |  | — |  |  |  | 109,299 |
Fair value changes on convertible notes |  |  |  |  | - |  |  |  | - |  |  |  | — |  |  |  | — |
Others |  |  |  |  | 5,965 |  |  |  | 238,171 |  |  |  | — |  |  |  | 244,136 |
Less: valuation allowance |  |  |  |  | (8,565,895 | ) |  |  | (17,429,473 | ) |  |  | — |  |  |  | (25,995,368 | )
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intangibles on account of business combination |  |  | - |  |  |  | (263,665 | ) |  |  | — |  |  |  | (263,665 | )
Gain on convertible notes |  |  |  |  | - |  |  |  | 608,233 |  |  |  | (608,233 | ) |  |  | - |
Currency translation |  |  |  |  | — |  |  |  | (193,121 | ) |  |  | 193,121 |  |  |  | — |
Acquisitions |  |  |  |  | - |  |  |  | (48,330 | ) |  |  | 48,330 |  |  |  | - |
|  |  |  |  | 82,345 |  |  |  | 42,825 |  |  |  | (366,782 | ) |  |  | (241,612 | )
The Company regularly reviews its deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences and tax planning strategies. The Company's judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the Company's income tax provision would increase or decrease in the period in which the assessment is changed. The Company's valuation allowance increased by $14,528,970 during the period ended September 30, 2024 and $17,429,473 during the year ended March 31, 2024 . The Company has not provided U.S. income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries because the Company intends to permanently reinvest such earnings outside the U.S. Net operating loss and credit carry forwards As of September 30, 2024, the Company has U.S. federal net operating loss carry forwards of approximately $130,238,537, of which none are subject to limitation under Internal Revenue Code Section 382 (IRC Section 382). The federal net operating loss carry forwards that were generated prior to the 2018 tax year will begin to expire in 2030 if not utilized. For net operating loss carry forwards arising in tax years beginning after March 31, 2017, the tax act limits the Company's ability to utilize carry forwards to 80% of taxable income, however, these operating losses may be carried forward indefinitely. The state (Delaware) net operating loss carry forwards will begin to expire in 2032 if not utilized. The Company has foreign tax credits which will expire at the end of 8 years from the end of the assessment year in which these tax credits were originated. Utilization of the net operating loss carry forwards may be subject to a substantial annual limitation due to the ownership change provisions of IRC Section 382 and similar state provisions. The annual limitation may result in the inability to fully offset future annual taxable income and could result in the expiration of net operating loss carry forwards before utilization. The Company continually reviews the impact to net operating losses of any ownership changes. Unrecognized tax benefits The Company has adopted authoritative guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company did no t have any unrecognized tax benefits with a significant impact on its financial statements as of September 30, 2024 and March 31, 2024. The Company's major tax jurisdictions are India, the United Kingdom and the U.S. The U.S. federal, state and foreign jurisdictions have statutes of limitations that generally range from three to six years. Due to the Company's net losses, substantially all of its federal and state income tax returns are subject to examination for federal and state purposes.

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