XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.23.3

Income Taxes | 6 Months Ended
--- | ---
Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Note 6. Income Taxes The Company recorded an income tax benefit of approximately $0.1 million for the three months ended September 30, 2023 compared to an income tax benefit of approximately $1.0 million for the three months ended September 30, 2022. The Company’s effective tax rate decreased to 1.4% for the three months ended September 30, 2023 from 23.4% for the three months ended September 30, 2022. The Company recorded an income tax benefit of $0 for the six months ended September 30, 2023 compared to an income tax benefit of approximately $1.6 million for the six months ended September 30, 2022. The Company’s effective tax rate decreased to 0.0% for the six months ended September 30, 2023 from 24.4% for the six months ended September 30, 2022. The lower effective tax rate for the three and six months ended September 30, 2023 is primarily attributable to the establishment of a valuation allowance subsequent to September 30, 2022. During the quarter ended December 31, 2022, the Company determined there was not 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. Therefore, it will continue to maintain a full valuation allowance on its U.S. federal and state net deferred tax asset. The Company does no t have any material unrecognized tax benefits as of September 30, 2023. 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 income tax assets consist of the following:
|  | (In thousands) |
|  | September 30, 2023 |  |  | March 31, 2023 |
Allowance for credit losses not currently deductible for tax purposes |  | $ | 3,241 |  |  | $ | 4,538 |
Share-based compensation |  |  | 30 |  |  |  | 20 |
Federal and state net operating loss carryforwards |  |  | 8,022 |  |  |  | 4,812 |
Right of use liability |  |  | 37 |  |  |  | 43 |
Other items |  |  | 26 |  |  |  | 87 |
Valuation allowance |  |  | (11,265 | ) |  |  | (9,457 | )
Total deferred tax assets |  |  | 91 |  |  |  | 43 |
Deferred tax liabilities |  |  |  |  |  |
Right of use asset |  |  | 37 |  |  |  | 43 |
Other items |  |  | 54 |  |  |  | - |
Total deferred tax liabilities |  |  | 91 |  |  |  | 43 |
Deferred income taxes |  | $ | - |  |  | $ | - |
Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of negative evidence evaluated was the cumulative pre-tax loss over the three-year period ended September 30, 2023, as a result, a full valuation allowance remained recorded against the Company’s net deferred tax asset. The federal net operating loss ("NOL") generated beginning in 2021 and later will carry forward indefinitely, while some state NOLs begin to expire March 31, 2039. As of September 30, 2023, the Company maintained a deferred income tax valuation allowance of $11.3 million, the remaining state Gross NOL was $53.5 million, and the remaining federal Gross NOL amounted to $31.3 million.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration