INCOME TAXES (Tables)

9 Months Ended

Dec. 31, 2021

INCOME TAXES

Schedule of components of the net loss (income) before tax on income

The components of net loss before income tax for continuing operations (comprised of the total of loss before income tax and equity in net loss of investee and equity in net loss of investee, net of tax) for the nine months ended December 31, 2021 and the period February 8, 2021 (date of inception) to March 31, 2021 are as follows (in thousands):

			Period February 8,
			2021 (date of
	Nine Months Ended		inception) to
	December 31,		March 31,
	2021		2021
Domestic	$	(45,516)	$	(1,676)
Foreign		—		—
Total	$	(45,516)	$	(1,676)

Schedule of income tax provision

The Company’s income tax benefit for continuing operations for the nine months ended December 31, 2021 and the period February 8, 2021 (date of inception) to March 31, 2021 are as follows (in thousands):

			Period February 8,
			2021 (date of
	Nine Months Ended		inception) to
	December 31,		March 31,
	2021		2021
Current:
Federal	$	—	$	—
State		—		—
Total current income tax (benefit) expense		—		—
Deferred:
Federal		(615)		—
State		—		—
Total deferred income tax benefit		(615)		—
Income tax benefit	$	(615)	$	—

Schedule of reconciliation between income tax benefit and the expected tax benefit at the statutory rate

A reconciliation between income tax benefit and the expected tax benefit at the statutory rate for the nine months ended December 31, 2021 and the period February 8, 2021 (date of inception) to March 31, 2021 are as follows:

			Period February 8,
			2021 (date of
	Nine Months Ended		inception) to
	December 31,		March 31,
	2021		2021
Federal statutory rate	21.0	%	21.0	%
State rate, net of federal benefit	0.0	%	0.0	%
Non-deductible equity financing costs	(2.8)	%	0.0	%
Change in valuation allowance	(16.8)	%	(21.0)	%
Effective tax rate	1.4	%	0.0	%

Schedule of significant components of the deferred tax assets

The significant components of the Company’s deferred tax liabilities, net consist of the following at December 31, 2021 and March 31, 2021 (in thousands):

	December 31, 2021		March 31, 2021
Deferred tax assets:
Net operating loss	$	6,678	$	352
Share based liabilities		2,630		—
Accruals and reserves		470		—
Tax credit carryforwards		278		—
Operating lease liability		227		—
Gross deferred tax assets		10,283		352
Valuation allowance		(8,295)		(352)
Deferred tax assets, net		1,988		—
Deferred tax liabilities:
Property, plant and equipment		(899)		—
Intangible assets		(723)		—
Inventory		(407)		—
Right-of-use asset		(215)		—
Deferred tax liabilites, net	$	(256)	$	—