Note 12 - Income Taxes

9 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 12 - INCOME TAXES

At  December 31, 2021, the Company had federal net operating loss carry-forwards ("NOLs") of approximately $3,488,000. These NOLs    may be used to offset future taxable income and thereby reduce or eliminate our federal income taxes otherwise payable. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Ultimate utilization of such NOLs and research and development credits is dependent upon the Company's ability to generate taxable income in future periods and    may be significantly curtailed if a significant change in ownership occurs.

During the nine months ended  December 31, 2021, the Company generated approximately $750,000 of net operating losses. A valuation allowance was recorded against the current NOLs at the blended tax rate of 28.1%.

The effective tax rates were approximately 43% and 4 % for the nine months ended  December 31, 2021 and 2020, respectively.