Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of income tax expense

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

	(In thousands)
	2024		2023
Current:
Federal	$	-	$	22
State		-		10
Total current		-		32
Deferred:
Federal		-		708
State		-		677
Total deferred		-		1,385
Income tax expense	$	-	$	1,417

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	2024			2023
Allowance for credit losses not currently deductible    for tax purposes	$	-		$	4,538
Unrealized fair value adjustment		4,162			-
Share-based compensation		30			20
Federal and state net operating loss carryforwards		9,816			4,812
Right of use liability		15			43
Other items		50			87
Valuation allowance		(14,047	)		(9,457	)
Total deferred tax assets		26			43
Deferred tax liabilities
Right of use asset		15			43
Other items		11			-
Total deferred tax liabilities		26			43
Deferred income taxes	$	-		$	-

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)
	2024			2023
Income tax benefit at Federal statutory rate	$	(4,355	)	$	(6,838	)
Increase (decrease) resulting from:
Change in valuation allowance		4,590			9,457
State income taxes, net of Federal benefit		(770	)		(1,207	)
Other		535			5
Income tax expense	$	-		$	1,417