Income Taxes (Tables)

12 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of income tax expense

Income tax expense consists of the following for the years ended March 31:

	(In thousands)
	2023		2022
Current:
Federal	$	22	$	116
State		10		35
Total current		32		151
Deferred:
Federal		708		800
State		677		97
Total deferred		1,385		897
Income tax expense	$	1,417	$	1,048

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 as of March 31:

	(In thousands)
Deferred Tax Assets	2023			2022
Allowance for credit losses not currently deductible    for tax purposes	$	4,538		$	900
Share-based compensation		20			79
Federal and state net operating loss carryforwards		4,812			507
Right of use liability		43			1,094
Other items		87			175
Valuation Allowance		(9,457	)		-
Total deferred tax assets		43			2,755
Deferred tax liabilities
Right of use asset		43			1,062
Other items		-			308
Total deferred tax liabilities		43			1,370
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)
	2023			2022
Income tax (benefit) expense at Federal statutory rate	$	(6,838	)	$	855
Increase (decrease) resulting from:
Change in Valuation Allowance		9,457			-
State income taxes, net of Federal benefit		(1,207	)		142
Other		5			51
Income tax expense	$	1,417		$	1,048