XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.26.1

Note 6 - Income Taxes | 12 Months Ended
--- | ---
Mar. 31, 2026
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 6– Income Taxes The Company files U.S. federal and various U.S. state income tax returns. Due to the Company’s losses, there was no income tax expense for the years ended March 31, 2026 and 2025. The Company adopted ASU 2023-09 "Income Taxes (Topic 740): Improvements To Income Tax Disclosures" on a prospective basis beginning with the year ended March 31, 2026. The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to our actual global effective amount and rate for the year ended March 31, 2026 (in thousands):
|  |  |  |  |  |  |  | %
|  | Year Ended March 31, 2026 |
|  | Amount |  |  | Percent |
Federal benefit at statutory rate |  | $ | (3,510 | ) |  |  | 21.00 | %
Nontaxable or nondeductible items: |  |  |  |  |  |  |  |
Cancellation of prior stock compensation deferred tax asset |  |  | 1,360 |  |  |  | (8.13 | )%
Equity-based compensation |  |  | 8 |  |  |  | (0.06 | )%
State tax expense |  |  | (53 | ) |  |  | 0.32 | %
Valuation allowance |  |  | 2,195 |  |  |  | (13.13 | )%
Effective income tax rate |  | $ | — |  |  |  | — | %
The effective income tax rate varied from the statutory rate in 2026 primarily due to and the increase in the valuation allowance. The effective income tax rate varied from the statutory rate in 2025 primarily as a result of the increase in the valuation allowance. The following table presents the Company’s effective income tax rate reconciliation for the year ended March 31, 2025, in accordance with the guidance prior to the adoption of ASU 2023-09 (in thousands):
|  | Year Ended March 31, 2025 |
|  | Amount |  |  | Percent |
Tax benefit at the U.S. federal statutory rate |  | $ | (2,396 | ) |  |  | 21.00 | %
Permanent differences |  |  | 5 |  |  |  | (0.05 | )%
Return to provision |  |  | (44 | ) |  |  | 0.39 | %
Change in state rate |  |  | 234 |  |  |  | (2.05 | )%
State tax (net of federal benefit) |  |  | (63 | ) |  |  | 0.55 | %
Valuation allowance |  |  | 2,264 |  |  |  | (19.84 | )%
Effective income tax rate |  | $ | — |  |  |  | — | %
Deferred tax assets and liabilities consist of the following (in thousands):
|  | March 31, |  |  | March 31, |
|  | 2026 |  |  | 2025 |
Deferred tax assets: |  |  |  |  |  |  |  |
Capitalized research and development expense |  | $ | 1,275 |  |  | $ | 1,380 |
Net operating loss carryforwards |  |  | 1,965 |  |  |  | 761 |
Accrual expenses and other current liabilities |  |  | 4,677 |  |  |  | 3,438 |
Stock-based compensation |  |  | — |  |  |  | 450 |
Total deferred tax assets |  |  | 7,917 |  |  |  | 6,029 |
Less: valuation allowance |  |  | (7,917 | ) |  |  | (5,723 | )
Net deferred tax assets |  |  | — |  |  |  | 306 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Section 481A method change |  |  | — |  |  |  | (306 | )
Total deferred tax liabilities |  |  | — |  |  |  | (306 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
At March 31, 2026, the Company had U.S. federal net operating loss ("NOL") carry forwards of $9.4 million. Approximately $0.6 million of the U.S. federal NOLs will start expiring in 2037. Additionally, the Company generated a U.S. federal NOL carry-forward of approximately $8.8 million post-2017 to 2025. Under the new Tax Act, post-2017 federal NOL carry forwards do not expire, but can only offset 80% of taxable income in the year the loss carry forward is used. Sections 382 and 383 of the Internal Revenue Code limit the annual use of NOL carry-forwards and tax credit carry forwards, respectively, following an ownership change. NOL carry-forwards may be subject to annual limitations under Internal Revenue Code Section 382 (Section 382) (or comparable provisions of state law) if certain changes in ownership were to occur. Determination of ownership change, or limitation hasn’t been calculated; however, the Company will perform the NOL limitation analysis under Section 382 before any NOLs are expected to be utilized. Sections 382 and 383 of the Internal Revenue Code limit the annual use of NOL carry-forwards and tax credit carry forwards, respectively, following an ownership change. NOL carry- forwards may be subject to annual limitations under Internal Revenue Code Section 382 (Section 382) (or comparable provisions of state law) if certain changes in ownership were to occur. Determination of ownership change, or limitation hasn’t been calculated; however, the Company will perform the NOL limitation analysis under Section 382 before any NOLs are expected to be utilized. The Company has recorded a full valuation allowance against its net total deferred tax assets as of March 31, 2026 and 2025 because management determined that it is not more-likely-than not that those assets will be realized. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of deferred assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During the year ended March 31, 2026, the valuation allowance increased by $2.2 million mainly due to additional capitalized R&D and Start-up Costs. The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. As of March 31, 2026, all of the tax years remained open to examination by the federal and state taxing authorities, for three or four years from the tax year in which net operating losses or tax credits are utilized completely. As of March 31, 2026, the Company has no uncertain tax positions.

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

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: 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/1943274/2147477891/740-270-50-1 Reference 9: 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 10: 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 11: 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 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: 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 14: 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 15: 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 16: 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 17: 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