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Income Taxes | 12 Months Ended
--- | ---
Mar. 31, 2023
Income Taxes [Abstract] |
INCOME TAXES | NOTE 9 – INCOME TAXES The income tax provision consisted of the following:
|  | Year Ended March 31, |
|  | 2023 |  |  | 2022 |
Current portion: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  |  | 1,600 |  |  |  | 1,600 |
|  |  | 1,600 |  |  |  | 1,600 |
Deferred portion: |  |  |  |  |  |  |  |
Federal |  |  | (2,933,000 | ) |  |  | (4,109,000 | )
State |  |  | (1,467,000 | ) |  |  | (1,300,000 | )
|  |  | (4,400,000 | ) |  |  | (5,409,000 | )
Change in valuation allowance |  |  | 4,400,000 |  |  |  | 5,409,000 |
Provision for income taxes |  | $ | 1,600 |  |  | $ | 1,600 |
At March 31, 2023, the Company had net operating loss carryforwards (NOLs) of approximately $29,500,000 for federal income tax purposes and $36,600,000 for state income tax purposes. These NOLs are available to reduce future taxable income and will expire at various times from 2037 through 2043, except federal NOLs from fiscal 2018 and later, which will never expire. The Company also had federal research and development tax credit carryforwards of approximately $1,300,000, which will begin expiring at various times from 2038 through 2042, and state research and development credits of approximately $400,000, which do not have an expiration date. A reconciliation of income taxes provided at the federal statutory rate to the actual income tax provision is as follows:
|  | Year Ended March 31, |
|  | 2023 |  |  | 2022 |
Federal statutory rate |  |  | (21 | )% |  |  | (21 | )%
State tax rate, net of federal benefit |  |  | (6 | )% |  |  | (7 | )%
Research and development tax credits |  |  | (6 | )% |  |  | (2 | )%
Change in valuation allowance |  |  | 29 | % |  |  | 30 | %
Other |  |  | 4 | % |  |  | — | %
Effective income tax rate |  |  | — | % |  |  | — | %
The losses before income tax provision for the years ended March 31, 2023 and 2022 were solely attributable to US operations. Significant components of the Company’s deferred tax assets and liabilities were:
|  | March 31, |
|  | 2023 |  |  | 2022 |
Net operating loss carryforwards |  | $ | 8,742,000 |  |  | $ | 7,731,000 |
Stock-based compensation expense |  |  | 2,587,000 |  |  |  | 1,824,000 |
Property and equipment |  |  | 105,000 |  |  |  | 80,000 |
Reserves, accruals & other |  |  | 1,841,000 |  |  |  | (104,000 | )
Research and development tax credits |  |  | 1,658,000 |  |  |  | 988,000 |
Total deferred tax assets |  |  | 14,933,000 |  |  |  | 10,519,000 |
Section 179 assets |  |  | (111,000 | ) |  |  | (97,000 | )
Total deferred tax liabilities |  |  | (111,000 | ) |  |  | (97,000 | )
Less: valuation allowance |  |  | (14,822,000 | ) |  |  | (10,422,000 | )
Deferred tax assets, net |  | $ | — |  |  | $ | — |
Based on the available information and other factors, management believes it is more likely than not that the net deferred tax assets at March 31, 2023 and 2022, will not be fully realizable. Accordingly, management has recorded a full valuation allowance against its net deferred tax assets at March 31, 2023 and 2022. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements at March 31, 2023 and 2022. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date.

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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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