INCOME TAXES (Tables)

9 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

SCHEDULE OF LOSS BEFORE INCOME TAXES

The Company’s loss before income taxes for the nine months ended December 31, 2023, and fiscal years ended March 31, 2023, and 2022 is as follows:

	Nine months ended			Fiscal years ended
	December 31, 2023			March 31, 2023			March 31, 2023
United States	$	(6,173,000	)	$	(3,526,000	)	$	(261,000	)
Foreign		(225,000	)		(82,000	)		548,000
	$	(6,398,000	)	$	(3,608,000	)		287,000

SCHEDULE OF PROVISION FOR INCOME TAXES

The provision for income taxes for the nine months ended December 31, 2023, and fiscal years ended March 31, 2023, and 2022 is as follows:

	Nine months ended		Fiscal years ended
	December 31, 2023		March 31, 2023			March 31, 2022
Income tax provision:
Current:
Federal	$	-	$	109,000		$	63,000
State		-		-			-
Other		-		(5,000	)		-
Hong Kong		-		34,000			-
Total current Federal and State	$	-	$	138,000		$	63,000
Deferred:
Federal	$	-	$	686,000		$	(60,000	)
State		-		206,000			54,000
Total Deferred Federal and State		-		892,000			(6,000	)
Total income tax provision	$	-	$	1,030,000		$	57,000

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The Company’s net deferred tax assets as of December 31, 2023, and ended March 31, 2023 are as follows:

	December 31,			March 31,
	2023			2023
NOL Federal Carryforward	$	1,291,000		$	868,000
State NOL Carryforward		470,000			341,000
Inventory differences to inventory valuation		1,173,000			623,000
Stock option compensation expense		159,000			184,000
Right of use liability		1,022,000			118,000
Business interest limitation		151,000			138,000
Allowance for doubtful accounts		45,000			43,000
Reserve for estimated returns		384,000			89,000
Accrued vacation		7,000			14,000
		4,702,000			2,418,000
Less: valuation allowance		(3,600,000	)		(2,104,000	)
Net deferred tax asset		1,102,000			314,000
Depreciable and amortizable assets		(67,000	)		(134,000	)
ROU Asset		(1,000,000	)		(111,000	)
Prepaid expenses		(35,000	)		(69,000	)
Net deferred tax liability		(1,102,000	)		(314,000	)
	$	-		$	-

SCHEDULE OF TAX PROVISION

The actual tax provision differs from the “expected” tax for the nine-month transition period ended December 31, 2023, and the years ended March 31, 2023, and 2022 (computed by applying the U.S. Federal Corporate tax rate of 21 percent to income before taxes) as follows:

	December 31, 2023			March 31, 2023			March 31, 2022
Statutory federal tax rate	$	(1,344,000	)	$	(758,000	)	$	60,000
Stater tax rate		(326,000	)		(174,000	)		14,000
Permanent differences		15,000			13,000			10,000
Permanent difference in ERC income		-			(99,000	)		-
Tax rate differential on foreign earnings		59,000			21,000			(84,000	)
Expiration of net opretaing loss carryforward		89,000			-			-
Change in valuation allowance		1,495,000			2,026,000			55,000
Other		12,000			1,000			2,000
	$	-		$	1,030,000		$	57,000