INCOME TAXES |
3 Months Ended |
|---|---|
Jun. 30, 2026 | |
| INCOME TAXES | |
| INCOME TAXES | 11.INCOME TAXES The Company calculates its interim tax provision in accordance with the guidance for accounting for income taxes in interim periods. The Company estimates its annual effective tax rate and applies that rate to its ordinary quarterly pre-tax income or loss. The tax expense or benefit related to isolated events during the interim period is recognized in the interim period in which those events occur. The Company recognizes a liability or asset for the deferred tax effects of temporary differences between the tax basis of assets and liabilities and their reported amounts in the condensed consolidated financial statements. These temporary differences may result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. Management reviews net operating loss carryforwards and income tax credit carryforwards to evaluate whether those amounts are recoverable. After a review of projected taxable income, the components of the deferred tax assets, and current economic conditions, management determined that it is more likely than not that the tax benefits associated with the remaining components of the deferred tax assets will not be realized. This determination was based on the Company’s prior history of losses from operations and the uncertainty as to whether the Company will generate sufficient taxable income to use the deferred tax assets prior to their expiration. Accordingly, a valuation allowance was established to fully offset the value of the remaining deferred tax assets. The Company’s ability to realize the tax benefits associated with the deferred tax assets depends primarily upon the timing of future taxable income and the expiration dates of the components of the deferred tax assets. The Company follows ASC 740-10, Income Taxes – Overall, which provides guidance for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and requires that the Company recognize in its condensed consolidated financial statements the impact of a tax position if that position is more likely than not to be sustained upon examination, based on the technical merits of the position. Interest and penalties, if any, related to income tax matters are recorded as income tax expense. |