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RECENT ACCOUNTING PRONOUNCEMENTS
 9 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
RECENT ACCOUNTING PRONOUNCEMENTS

4. RECENT ACCOUNTING PRONOUNCEMENTS

 

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. We are currently assessing the impact this guidance will have on our consolidated financial statements; however, we do not expect a material impact.

 

In December 2023, the FASB issued Accounting Standards Update 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires enhanced annual disclosures for specific categories in the rate reconciliation and income taxes paid disaggregated by federal, state and foreign taxes. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating if the adoption of this new standard will have a material effect on our disclosures.

 

In March 2024, the FASB issued ASU 2024-01 – Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. This update introduces illustrative examples to clarify how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar awards fall under the requirements of Topic 718, Compensation—Stock Compensation. ASU 2024-01 becomes effective for fiscal years starting after December 15, 2024. The Company does not anticipate any impact from ASU 2024-01, as it does not currently issue profits interest awards.

 

In November 2024, the FASB issued ASU 2024-03, titled Reporting Comprehensive Income–Expense Disaggregation Disclosures, Disaggregation of Income Statement Expense (ASU 2024-03). The objective of ASU 2024-03 is to improve transparency in the reporting of a public business entity’s expenses and address investor requests for more granular insights into the breakdown of expense line items typically reported in financial statements, such as cost of sales, SG&A, and research and development. The update requires greater detail on specific expense categories, including inventory purchases, employee compensation, depreciation, amortization, and depletion. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026, and interim periods within the annual reporting periods beginning after December 15, 2027. The Company expects to adopt ASU 2024-03, a disclosure-only standard, April 1, 2027.

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The adoption of ASU No. 2016-13 for smaller reporting companies that did not previously early adopt was January 1, 2023. The Company maintained US Treasury bills with maturities of less than three months and anticipates no credit losses from these securities. Additionally, the Company does not have any revenue or accounts receivables. As a result, the Company did not establish an allowance for expected credit losses.