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Income Taxes (Tables)

12 Months Ended

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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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.

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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.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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