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Income Taxes (Tables)

9 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of deferred tax assets and liabilities

The net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes are reflected in deferred income taxes. Significant components of the Company’s deferred tax assets consist of the following:

		(In thousands)
		December 31, 2022				March 31, 2022
Deferred Tax Assets:
Federal and State net operating loss carryforwards		$	2,365			$	507
Share-based compensation			14				79
Allowance for credit losses not currently deductible for tax purposes			2,998				900
Right of use liability			675				1,094
Other items			119				175
Gross deferred tax assets			6,171				2,755
Valuation allowance for deferred tax assets			(5,723	)			-
Net deferred tax assets			448				2,755
Deferred tax liabilities:
Right of use asset			290				1,061
Other items			158				309
Total deferred tax liabilities			448				1,370
Net deferred income taxes		$	-			$	1,385

Schedule of income tax expense reflects an effective U.S tax rate

Income tax expense reflects an effective U.S tax rate, which differs from the corporate tax rate for the following reasons:

		(In thousands)
		Three months ended				Nine months ended
		December 31, 2022				December 31, 2022
Income tax expense at Federal statutory rate		$	(2,178	)		$	(3,530	)
State income taxes, net of Federal benefit			(398	)			(645	)
Increase (decrease) resulting from:
Change in Valuation Allowance			5,723				5,723
Other			(147	)			(133	)
Income tax expense		$	3,000			$	1,415

As of December 31, 2022 the Company has not generated sufficient positive evidence of future earnings to support a position that it will be able to realize its net deferred tax asset. The Company has significant negative evidence to overcome in the form of cumulative pre-tax losses from continuing operations as well as projected losses for the current year. Therefore, it will continue to maintain a full valuation allowance on its U.S. federal and state net deferred tax asset. The change in the valuation allowance offset

the income tax benefit related to the pre-tax loss for the quarter ended December 31, 2022. The Company does not have any material unrecognized tax benefits as of December 31, 2022.

The Company experienced a net change in valuation allowance of $5.7 million for the three and nine months ended December 31, 2022.

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- References

No definition available.

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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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319

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- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319

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