Note 8 - Income Taxes

3 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 8:  Income Taxes

For the quarters ended June 30, 2022 and 2021, the Company recorded an income tax provision of approximately $1.0 million and $1.4 million, respectively. The decrease to the income tax provision for the quarter ended June 30, 2022 is related to a decrease in operating income during the quarter. The effective tax rate for the quarter ended June 30, 2022 was approximately 27.1%, compared to approximately 23.5% for the quarter ended June 30, 2021. The increase in the effective tax rate for the quarter ended June 30, 2022 is due to an increase in the number of states that the Company has income tax nexus with, due to many of its employees working remotely in various states. The increase to the effective tax rate is also related to an increase in stock compensation during the quarter, which is expected to reverse during the fiscal year 2023 as the related compensation shares vest. The effective tax rate should average out to approximately 24.5% in fiscal year 2023.