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Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2025
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,
| 2025 |  | 2024
Deferred tax assets: |  |  |
Accrued sales tax liability | $ | 5,101 |  |  | $ | 5,126 |
Other accrued expenses | 200 |  |  | 225 |
Deferred stock compensation | 425 |  |  | 680 |
Deferred revenue | — |  |  | 31 |
Bad debt and inventory reserves | 227 |  |  | 440 |
Capitalized research and development costs | 3,201 |  |  | 317 |
Lease liabilities | 250 |  |  | 375 |
Net operating loss carryforward | 3,431 |  |  | 3,001 |
Total deferred tax assets | 12,835 |  |  | 10,195 |
Deferred tax liabilities: |  |  |
Tax accounting method change | (349) |  |  | (541) |
Intangible assets | (1,921) |  |  | (2,627) |
Property and equipment | (3,181) |  |  | (1,041) |
Right of use assets | (242) |  |  | (376) |
Total deferred tax liabilities | (5,693) |  |  | (4,585) |
Valuation allowance | (7,405) |  |  | (624) |
Total net deferred tax (liability) asset | $ | (263) |  |  | $ | 4,986 |
Schedule of Income before Income Tax, Domestic and Foreign | Outlined below are the tax attributes acquired and the balances remaining as of March 31, 2025 and 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 Attributes 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 |  | $ | — |  |  | $ | — |  |  | $ | — |  | None
State net operating losses |  | $ | 11,040 |  |  | $ | 2,066 |  |  | $ | 8,974 |  | Beginning in FY 2026
Tax Attributes as of March 31, 2025 |  | Total |  | Sec. 382 limited utilization |  | Attributes for which a deferred tax asset is recorded | Expiration
Federal net operating losses - limited carryover |  | $ | 77,052 |  |  | $ | 76,238 |  |  | $ | 814 |  | Beginning in FY 2026
Federal net operating losses - unlimited carryover |  | $ | 12,739 |  |  | $ | — |  |  | $ | 12,739 |  | None
Disallowed business interest expense carryover |  | $ | — |  |  | $ | — |  |  | $ | — |  | None
State net operating losses |  | $ | 11,884 |  |  | $ | 832 |  |  | $ | 11,052 |  | Beginning in FY 2026
Summary of Valuation Allowance | Changes in the valuation allowance were as follows:
| Year Ended March 31,
| 2025 |  | 2024 |  | 2023
Valuation allowance at beginning of year | (624) |  |  | — |  | —
Increases recorded | (6,781) |  |  | (624) |  |  | —
Valuation allowance at end of year | $ | (7,405) |  |  | $ | (624) |  |  | —
Schedule of Components of Income Tax Provision | The components of the income tax provision consist of the following (in thousands):
| Year Ended March 31,
| 2025 |  | 2024 |  | 2023
Current taxes |  |  |  |  |
Federal | $ | 343 |  |  | $ | 490 |  |  | $ | 2,622 |
State | 93 |  |  | 408 |  |  | 1,312 |
Total current income tax provision | 436 |  |  | 898 |  |  | 3,934 |
Deferred income tax provision (benefit) |  |  |  |  |
Federal | 4,448 |  |  | 412 |  |  | (453) |
State | 800 |  |  | (119) |  |  | (1,176) |
Total deferred taxes | 5,248 |  |  | 293 |  |  | (1,629) |
Total income tax provision | $ | 5,684 |  |  | $ | 1,191 |  |  | $ | 2,305 |
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,
| 2025 |  | 2024 |  | 2023
Income taxes at federal statutory rates | $ | (123) |  |  | $ | (1,317) |  |  | $ | 1,563 |
State income taxes, net of federal tax benefit | (264) |  |  | 304 |  |  | 107 |
Non-deductible executive compensation | (1,771) |  |  | 1,771 |  |  | — |
Other permanent differences | (56) |  |  | 105 |  |  | 340 |
Restricted stock shortfall adjustment | 373 |  |  | 281 |  |  | 171 |
Deferred tax adjustments | 369 |  |  | 47 |  |  | — |
Taxes payable adjustments | 363 |  |  | — |  |  | — |
Valuation allowance | 6,781 |  |  | — |  |  | — |
Other | 12 |  |  | — |  |  | 124 |
Total income tax provision | $ | 5,684 |  |  | $ | 1,191 |  |  | $ | 2,305 |
The differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:
| Year Ended March 31,
| 2025 |  | 2024 |  | 2023
Federal rate on income before taxes | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | 45.0 | % |  | (4.9) | % |  | 1.4 | %
Non-deductible executive compensation | 301.7 | % |  | (28.2) | % |  | — | %
Other permanent differences | 9.5 | % |  | (1.7) | % |  | 4.6 | %
Restricted stock shortfall adjustment | (63.5) | % |  | (4.4) | % |  | 2.3 | %
Deferred tax adjustments | (62.9) | % |  | (0.8) | % |  | — | %
Taxes payable adjustments | (61.9) | % |  | — | % |  | — | %
Valuation allowance | (1155.2) | % |  | — | % |  | — | %
Other | (2.0) | % |  | — | % |  | 1.7 | %
Total effective tax rate | (968.3) | % |  | (19.0) | % |  | 31.0 | %

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