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Income Taxes | 9 Months Ended | 12 Months Ended
--- | --- | ---
Dec. 31, 2023 | Mar. 31, 2023
Income Tax Disclosure [Abstract] |  |
Income Taxes | 25. Income taxes The Company’s net loss before provision for income taxes for the three months and nine months periods ended December 31, 2023 and December 31, 2022 was as follows:
Particulars |  | For the three months ended December 31, 2023 |  |  | For the three months ended December 31, 2022 |  |  | For the nine months ended December 31, 2023 |  |  | For the nine months ended December 31, 2022 |
Domestic |  |  | (28,679,087 | ) |  |  | 2,796,117 |  |  |  | (61,637,236 | ) |  |  | (5,806,071 | )
Foreign |  |  | (2,058,059 | ) |  |  | (2,450,329 | ) |  |  | (4,254,813 | ) |  |  | (3,932,603 | )
Total |  |  | (30,737,146 | ) |  |  | 345,788 |  |  |  | (65,892,049 | ) |  |  | (9,738,674 | )
The components of the provision for income taxes for the three months and nine months periods ended December 31, 2023 and December 31, 2022 were as follows:
Particulars |  | For the three months ended December 31, 2023 |  |  | For the three months ended December 31, 2022 |  |  | For the nine months ended December 31, 2023 |  |  | For the nine months ended December 31, 2022 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Foreign |  |  | (27,700 | ) |  |  | 17,214 |  |  |  | 44,377 |  |  |  | 22,115 |
|  |  | (27,700 | ) |  |  | 17,214 |  |  |  | 44,377 |  |  |  | 22,115 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Foreign |  |  | (99,032 | ) |  |  | (65,933 | ) |  |  | (137,759 | ) |  |  | (68,826 | )
|  |  | (99,032 | ) |  |  | (65,933 | ) |  |  | (137,759 | ) |  |  | (68,826 | )
Total provision for income taxes |  |  | (126,732 | ) |  |  | (48,719 | ) |  |  | (93,382 | ) |  |  | (46,711 | )
The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the three months and nine months periods ended December 31, 2023 and December 31, 2022:
Particulars |  | For the three months ended December 31, 2023 |  |  | For the three months ended December 31, 2022 |  |  | For the nine months ended December 31, 2023 |  |  | For the nine months ended December 31, 2022 |
Federal statutory income tax rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
Non deductible expenses |  |  | 0.03 | % |  |  | 26.80 | % |  |  | 4.98 | % |  |  | (2.93 | )%
Valuation allowance |  |  | (20.51 | )% |  |  | 0.82 | % |  |  | (25.73 | )% |  |  | (19.41 | )%
Foreign rate differential |  |  | (0.16 | )% |  |  | (27.81 | )% |  |  | (0.17 | )% |  |  | 1.64 | %
Share warrants |  |  | 0.00 | % |  |  | 2.01 | % |  |  | 0.00 | % |  |  | (0.07 | )%
Other |  |  | 0.05 | % |  |  | (36.91 | )% |  |  | 0.06 | % |  |  | 0.25 | %
Total provision for income taxes |  |  | 0.41 | % |  |  | (14.09 | )% |  |  | 0.14 | % |  |  | 0.48 | %
The components of the Company’s net deferred tax assets as of the nine months period ended December 31, 2023 and year ended March 31, 2023 were as follows:
Particulars |  | As of December 31, 2023 |  |  | As of March 31, 2023 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carry forwards |  |  | 25,134,198 |  |  |  | 8,480,316 |
Unabsorbed depreciation carry forwards |  |  | 107,160 |  |  |  | 54,438 |
Retirement benefits |  |  | 74,587 |  |  |  | 56,603 |
Depreciation and amortization |  |  | 124,269 |  |  |  | 50,918 |
Others |  |  | 241,303 |  |  |  | 5,965 |
Total deferred tax assets |  |  | 25,681,517 |  |  |  | 8,648,240 |
Less: valuation allowance |  |  | (25,521,208 | ) |  |  | (8,565,895 | )
Deferred tax assets, net of valuation allowance |  |  | 160,309 |  |  |  | 82,345 |
Deferred tax liabilities: |  |  |  |  |  |
Intangibles on account of business combination |  |  | (523,462 | ) |  |  | — |
Net deferred tax assets/ (liabilities) |  |  | (363,153 | ) |  |  | 82,345 |
Movement in net deferred tax assets:
|  | As of March 31, 2023 |  |  | Recognized/ reversed through statements of operations |  |  | Impact of currency translation and acquisitions |  |  | As of December 31, 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards |  |  | 8,480,316 |  |  |  | 16,653,882 |  |  |  | — |  |  |  | 25,134,198 |
Unabsorbed depreciation carry forwards |  |  | 54,438 |  |  |  | 52,722 |  |  |  | — |  |  |  | 107,160 |
Retirement benefits |  |  | 56,603 |  |  |  | 17,984 |  |  |  | — |  |  |  | 74,587 |
Depreciation and amortization |  |  | 50,918 |  |  |  | 73,351 |  |  |  | — |  |  |  | 124,269 |
Fair value changes on convertible notes |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Others |  |  | 5,965 |  |  |  | 235,338 |  |  |  | — |  |  |  | 241,303 |
Less: valuation allowance |  |  | (8,565,895 | ) |  |  | (16,955,313 | ) |  |  | — |  |  |  | (25,521,208 | )
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Intangibles on account of business combination |  |  | — |  |  |  | (523,462 | ) |  |  | — |  |  |  | (523,462 | )
Acquisitions |  |  | — |  |  |  | 606,512 |  |  |  | (606,512 | ) |  |  | — |
Currency translation |  |  | — |  |  |  | (23,255 | ) |  |  | 23,255 |  |  |  | — |
Net deferred tax assets/ (liabilities) |  |  | 82,345 |  |  |  | 137,759 |  |  |  | (583,257 | ) |  |  | (363,153 | )
Particulars |  | As of March 31, 2022 |  |  | Recognized/ reversed through statements of operations |  |  | Impact of currency translation and acquisitions |  |  | As of March 31, 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards |  |  | 5,742,033 |  |  |  | 2,738,283 |  |  |  | — |  |  |  | 8,480,316 |
Unabsorbed depreciation carry forwards |  |  | 9,174 |  |  |  | 45,264 |  |  |  | — |  |  |  | 54,438 |
Retirement benefits |  |  | 53,656 |  |  |  | 2,947 |  |  |  | — |  |  |  | 56,603 |
Depreciation and amortization |  |  | 25,232 |  |  |  | 25,686 |  |  |  | — |  |  |  | 50,918 |
Fair value changes on convertible notes |  |  | 3,967 |  |  |  | (3,967 | ) |  |  | — |  |  |  | — |
Others |  |  | 288,348 |  |  |  | (282,383 | ) |  |  | — |  |  |  | 5,965 |
Less: valuation allowance |  |  | (6,052,307 | ) |  |  | (2,513,588 | ) |  |  | — |  |  |  | (8,565,895 | )
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Intangibles on account of business combination |  |  | (117,729 | ) |  |  | 117,729 |  |  |  | — |  |  |  | — |
Currency translation |  |  | — |  |  |  | (1,286 | ) |  |  | 1,286 |  |  |  | — |
|  |  | (47,626 | ) |  |  | 128,685 |  |  |  | 1,286 |  |  |  | 82,345 |
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 judgement 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 $16,955,313 during the nine months ended December 31, 2023 and $2,515,200 during the year ended March 31, 2023. 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 December 31, 2023, the Company has U.S. federal net operating loss carry forwards of approximately $85,158,720, 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 December 31, 2017, the tax act limits the Company’s ability to utilize carryforwards 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 carryforwards 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 December 31, 2023 and 2022. 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. | 21. Income taxes The Company’s net loss before provision for income taxes for the years ended March 31, 2023 and 2022 were as follows:
Particulars |  | As of March 31, 2023 |  |  | As of March 31, 2022 |
Domestic |  |  | (8,917,510 | ) |  |  | (8,311,979 | )
Foreign |  |  | (5,325,906 | ) |  |  | (1,469,642 | )
Total |  |  | (14,243,416 | ) |  |  | (9,781,621 | )
The components of the provision for income taxes for the years ended March 31, 2023 and 2022, were as follows:
Particulars |  | As of March 31, 2023 |  |  | As of March 31, 2022 |
Current: |  |  |  |  |  |
Domestic |  |  | — |  |  |  | — |
Foreign |  |  | 86,420 |  |  |  | 114,422 |
|  |  | 86,420 |  |  |  | 114,422 |
Deferred: |  |  |  |  |  |
Domestic |  |  | — |  |  |  | (32,778 | )
Foreign |  |  | (128,685 | ) |  |  | (56,687 | )
|  |  | (128,685 | ) |  |  | (89,465 | )
Total provision for income taxes |  |  | (42,265 | ) |  |  | 24,957 |
The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended March 31, 2023 and 2022:
Particulars |  | As of March 31, 2023 |  |  | As of March 31, 2022 |
Federal statutory income tax rate |  |  | 21.00 | % |  |  | 21.00 | %
Non-deductible expenses |  |  | (4.08 | )% |  |  | 1.57 | %
Valuation allowance |  |  | (17.65 | )% |  |  | (21.04 | )%
Foreign rate differential |  |  | 1.24 | % |  |  | 1.20 | %
Share warrants |  |  | (0.05 | )% |  |  | (3.66 | )%
Other |  |  | (0.17 | )% |  |  | 0.68 | %
Total provision for income taxes |  |  | 0.30 | % |  |  | (0.26 | )%
The components of the Company’s net deferred tax assets as of the years ended March 31, 2023 and 2022 were as follows:
Particulars |  | As of March 31, 2023 |  |  | As of March 31, 2022 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  |  | 8,480,316 |  |  |  | 5,742,033 |
Unabsorbed depreciation carryforwards |  |  | 54,438 |  |  |  | 9,174 |
Retirement benefits |  |  | 56,603 |  |  |  | 53,656 |
Depreciation and amortization |  |  | 50,918 |  |  |  | 25,232 |
Fair value changes on convertible notes |  |  | — |  |  |  | 3,967 |
Others |  |  | 5,965 |  |  |  | 288,348 |
Total deferred tax assets |  |  | 8,648,240 |  |  |  | 6,122,410 |
Less: valuation allowance |  |  | (8,565,895 | ) |  |  | (6,052,307 | )
Deferred tax assets, net of valuation allowance |  |  | 82,345 |  |  |  | 70,103 |
Deferred tax liabilities: |  |  |  |  |  |
Intangibles on account of business combination |  |  | — |  |  |  | (117,729 | )
Net deferred tax assets/ (liabilities) |  |  | 82,345 |  |  |  | (47,626 | )
Movement in net deferred tax assets:
|  | As of March 31, 2022 |  |  | Recognised/ reversed through statements of operations |  |  | Impact of currency translation and acquisitions |  |  | As of March 31, 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards |  |  | 5,742,033 |  |  |  | 2,738,283 |  |  |  | — |  |  |  | 8,480,316 |
Unabsorbed depreciation carry forwards |  |  | 9,174 |  |  |  | 45,264 |  |  |  | — |  |  |  | 54,438 |
Retirement benefits |  |  | 53,656 |  |  |  | 2,947 |  |  |  | — |  |  |  | 56,603 |
Depreciation and amortization |  |  | 25,232 |  |  |  | 25,686 |  |  |  | — |  |  |  | 50,918 |
Fair value changes on convertible notes |  |  | 3,967 |  |  |  | (3,967 | ) |  |  | — |  |  |  | — |
Others |  |  | 288,348 |  |  |  | (282,383 | ) |  |  | — |  |  |  | 5,965 |
Less: valuation allowance |  |  | (6,052,307 | ) |  |  | (2,513,588 | ) |  |  | — |  |  |  | (8,565,895 | )
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Intangibles on account of business combination |  |  | (117,729 | ) |  |  | 117,729 |  |  |  | — |  |  |  | — |
Currency translation |  |  | — |  |  |  | (1,286 | ) |  |  | 1,286 |  |  |  | — |
Net deferred tax assets/ (liabilities) |  |  | (47,626 | ) |  |  | 128,685 |  |  |  | 1,286 |  |  |  | 82,345 |
Particulars |  | As of March 31, 2021 |  |  | Recognised/ reversed through statements of operations |  |  | Impact of currency translation and acquisitions |  |  | As of March 31, 2022 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards |  |  | 3,921,905 |  |  |  | 1,820,128 |  |  |  | — |  |  |  | 5,742,033 |
Unabsorbed depreciation carry forwards |  |  | 8,399 |  |  |  | 775 |  |  |  | — |  |  |  | 9,174 |
Retirement benefits |  |  | 27,311 |  |  |  | 26,344 |  |  |  | — |  |  |  | 53,656 |
Depreciation and amortization |  |  | 15,919 |  |  |  | 9,314 |  |  |  | — |  |  |  | 25,232 |
Fair value changes on convertible notes |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Fair value changes on convertible notes |  |  | — |  |  |  | 3,967 |  |  |  | — |  |  |  | 3,967 |
Others |  |  | 55,267 |  |  |  | 233,081 |  |  |  | — |  |  |  | 288,348 |
Less: valuation allowance |  |  | (3,994,222 | ) |  |  | (2,058,085 | ) |  |  | — |  |  |  | (6,052,307 | )
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Intangibles on account of business combination |  |  | (11,039 | ) |  |  | (106,690 | ) |  |  | — |  |  |  | (117,729 | )
Gain on convertible notes |  |  | (32,778 | ) |  |  | 32,778 |  |  |  | — |  |  |  | — |
Currency translation |  |  | — |  |  |  | (1,131 | ) |  |  | 1,131 |  |  |  | — |
Acquisitions |  |  | — |  |  |  | 128,985 |  |  |  | (128,985 | ) |  |  | — |
|  |  | (9,238 | ) |  |  | 89,466 |  |  |  | (127,854 | ) |  |  | (47,626 | )
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 $2,515,200 and $2,058,085 during the years ended March 31, 2023 and 2022, respectively. 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 March 31, 2023, the Company has U.S. federal net operating loss carry forwards of approximately $32,549,767, 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 December 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 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 originate. 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 March 31, 2023 and 2022. The Company’s major tax jurisdictions are India 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.

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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 -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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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
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