Note 5 - Income Taxes

12 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(5)         Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows (in thousands):

	March 31,
	2022			2021
Deferred tax assets:
Accrued expenses	$	364		$	406
Deferred stock compensation		662			321
Bad debt and inventory reserves		27			29
Total deferred tax assets		1,053			756
Deferred tax liabilities:
Property and equipment		(1,989	)		(2,037	)
Total net deferred tax liabilities	$	(936	)	$	(1,281	)

At March 31, 2022, the Company had no federal net operating loss carryforwards.

The components of the income tax provision consist of the following (in thousands):

	Year Ended March 31,
	2022			2021		2020
Current taxes
Federal	$	5,801		$	7,446	$	7,352
State		515			856		841
Total current taxes		6,316			8,302		8,193
Deferred taxes
Federal		(317	)		279		(135	)
State		(28	)		32		(16	)
Total deferred taxes		(345	)		311		(151	)
Total provision for income taxes	$	5,971		$	8,613	$	8,042

The reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands):

	Year Ended March 31,
	2022			2021			2020
Income taxes at U.S. statutory rates	$	5,685		$	8,235		$	7,118
State income taxes, net of federal tax benefit		379			708			649
Restricted stock (windfall) shortfall adjustment		33			(135	)		322
Other		(126	)		(195	)		(47	)
Total provision for income taxes	$	5,971		$	8,613		$	8,042

In fiscal 2022 the Company recognized a stock compensation shortfall charge of approximately $33,000 and recognized a one-time charge of approximately $29,000 related to a return to provision true up of the fiscal 2021 income tax provision. In fiscal 2021 the Company recognized a stock compensation windfall benefit of approximately $135,000, and recognized a one-time benefit of approximately $194,000, related to a return to provision true up of the fiscal 2020 income tax provision. In fiscal 2020 the Company recognized a stock compensation shortfall charge of approximately $322,000, and recognized a one-time benefit of approximately $93,000, related to a return to provision true up of the fiscal 2019 income tax provision.