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Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Deferred Tax Assets and Liabilities | 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,
| 2024 |  | 2023
Deferred tax assets: |  |  |
Accrued sales tax liability | $ | 5,126 |  |  | $ | 5,910 |
Other accrued expenses | 225 |  |  | — |
Deferred stock compensation | 680 |  |  | 1,605 |
Deferred revenue | 31 |  |  | — |
Bad debt and inventory reserves | 440 |  |  | 21 |
Capitalized research and development costs | 317 |  |  | — |
Lease liabilities | 376 |  |  | — |
Net operating loss carryforward | 3,001 |  |  | — |
Total deferred tax assets | 10,195 |  |  | 7,536 |
Deferred tax liabilities: |  |  |
Tax accounting method change | (541) |  |  | — |
Intangible assets | (2,627) |  |  | — |
Property and equipment | (1,041) |  |  | (2,527) |
Right of use assets | (376) |  |  | — |
Total deferred tax liabilities | (4,585) |  |  | (2,527) |
Valuation allowance | (624) |  |  | — |
Total net deferred tax assets | $ | 4,986 |  |  | $ | 5,009 |
Schedule of Income before Income Tax, Domestic and Foreign | Outlined below are the tax attributes acquired and the balances remaining as of March 31, 2024 (in thousands).
PetCareRx Tax Attributes Acquired |  | Total |  | Sec. 382 limited utilization |  | Attributes for which a deferred tax asset is recorded | Expiration
Federal net operating losses - limited carryover |  | 85,454 |  | 83,300 |  | 2,154 | Beginning in FY 2024
Federal net operating losses - unlimited carryover |  | 10,501 |  | — |  | 10,501 | None
Disallowed business interest expense carryover |  | 1,855 |  | — |  | 1,855 | None
State net operating losses |  | 11,040 |  | 2,066 |  | 8,974 | Beginning in FY 2026
Tax Attribute as of March 31, 2024 |  | Total |  | Sec. 382 limited utilization |  | Attributes for which a deferred tax asset is recorded | Expiration
Federal net operating losses - limited carryover |  | 84,114 |  | 83,300 |  | 814 | Beginning in FY 2025
Federal net operating losses - unlimited carryover |  | 10,501 |  | — |  | 10,501 | None
Disallowed business interest expense carryover |  | — |  | — |  | 0 | None
State net operating losses |  | 11,040 |  | 2,066 |  | 8,974 | Beginning in FY 2026
Schedule of Components of Income Tax Provision | The components of the income tax provision consist of the following (in thousands):
| Year Ended March 31,
| 2024 |  | 2023 |  | 2022
Current taxes |  |  |  |  |
Federal | $ | 490 |  |  | $ | 2,623 |  |  | $ | 5,802 |
State | 408 |  |  | 1,312 |  |  | 514 |
Total current income tax provision | 898 |  |  | 3,934 |  |  | 6,316 |
Deferred income tax provision (benefit) |  |  |  |  |
Federal | 412 |  |  | (453) |  |  | (778) |
State | (119) |  |  | (1,176) |  |  | (69) |
Total deferred taxes | 293 |  |  | (1,629) |  |  | (847) |
Total income tax provision | $ | 1,191 |  |  | $ | 2,305 |  |  | $ | 5,469 |
Schedule of Effective Income Tax Rate Reconciliation | 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,
| 2024 |  | 2023 |  | 2022
Income taxes at federal statutory rates | $ | (1,317) |  |  | $ | 1,564 |  |  | $ | 5,078 |
State income taxes, net of federal tax benefit | 304 |  |  | 107 |  |  | 428 |
Non-deductible executive compensation | 1,771 |  |  | — |  |  | — |
Other permanent differences | 105 |  |  | 340 |  |  | 116 |
Restricted stock shortfall adjustment | 281 |  |  | 171 |  |  | 31 |
Deferred tax adjustments | 47 |  |  | — |  |  | — |
Other | — |  |  | 124 |  |  | (184) |
Total income tax provision | $ | 1,191 |  |  | $ | 2,305 |  |  | $ | 5,469 |
The differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:
| Year Ended March 31,
| 2024 |  | 2023 |  | 2022
Federal rate on income before taxes | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | (4.9) | % |  | 1.4 | % |  | 1.8 | %
Non-deductible executive compensation | (28.2) | % |  | — | % |  | — | %
Other permanent differences | (1.7) | % |  | 4.6 | % |  | 0.5 | %
Restricted stock shortfall adjustment | (4.5) | % |  | 2.3 | % |  | 0.1 | %
Deferred tax adjustments | (0.8) | % |  | — | % |  | — | %
Other | — | % |  | 1.7 | % |  | (0.8) | %
Total Effective Tax Rate | (19.0) | % |  | 31.0 | % |  | 22.6 | %

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
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