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Income Taxes (As Restated)
 12 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes (As Restated) Income Taxes (As Restated)
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows (in thousands):
March 31,
20232022
(as restated)
(as restated)
Deferred tax assets:
Accrued expenses$5,910 $4,680 
Deferred stock compensation1,605 662 
Bad debt and inventory reserves21 27 
Total deferred tax assets7,536 5,369 
Deferred tax liabilities:
Depreciation and amortization(2,527)(1,990)
Total net deferred tax assets (liabilities)$5,009 $3,379 
At March 31, 2023, the Company had no federal or state net operating loss carryforwards.
The components of the income tax provision consist of the following (in thousands):
Year Ended March 31,
202320222021
(as restated)
(as restated)(as restated)
Current taxes
Federal$2,623 $5,802 $7,446 
State1,312 514 856 
Total current taxes3,934 6,316 8,302 
Deferred taxes
Federal(453)(778)(1,140)
State(1,176)(69)(131)
Total deferred taxes(1,629)(847)(1,271)
Total provision for income taxes$2,305 $5,469 $7,031 
The reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands):
Year Ended March 31,
202320222021
(as restated)(as restated)(as restated)
Income taxes at U.S. statutory rates$1,564 $5,078 $6,499 
State income taxes, net of federal tax benefit107 428 557 
Permanent differences340 116 479 
Restricted stock shortfall (windfall) adjustment171 31 (123)
Other124 (184)(381)
Total provision for income taxes$2,305 $5,469 $7,031 
In fiscal 2023, the Company recognized a stock compensation shortfall charge of approximately $171 thousand and recognized a one-time charge of approximately $382 thousand related to a return to provision true up of the fiscal 2022 income tax provision. In fiscal 2022, the Company recognized a stock compensation shortfall charge of approximately $31 thousand, and recognized a one-time benefit of approximately $29 thousand, related to a return to provision true up of the fiscal 2021 income tax provision. In fiscal 2021 the Company recognized a stock compensation windfall benefit of approximately $123 thousand, and recognized a one-time benefit of approximately $194 thousand, related to a return to provision true up of the fiscal 2020 income tax provision.
The differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:
Year Ended March 31,
202320222021
(as restated)(as restated)(as restated)
Federal rate on income before taxes21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefit1.4 %1.8 %1.8 %
Permanent differences4.6 %0.5 %1.5 %
Restricted stock shortfall (windfall) adjustments2.3 %0.1 %(0.3)%
Other1.7 %(0.7)%(1.2)%
Total Effective Tax Rate31.0 %22.7 %22.8 %
The primary drivers for the increase in effective tax rate for the fiscal 2023 include the recognition of permanent differences related to one-time acquisition costs and a non-deductible portion of restricted stock compensation. The state tax rate for fiscal 2023 includes continued expansion of operations as well as a one-time true up for new state filings for fiscal 2022.