Note 12 - Income Taxes (Tables)

12 Months Ended

Mar. 31, 2025

	*Year Ended March 31,*
	*2025*			*2024*			*2023*
Domestic	$	12,615		$	(233,853	)	$	1,887
Foreign		(6,654	)		(41,795	)		(2,276	)
Total earnings (loss) before income taxes	$	5,961		$	(275,648	)	$	(389	)

	*Year Ended March 31,*
	*2025*			*2024*			*2023*
Current tax provision:
U.S. Federal	$	3,994		$	3,002		$	593
U.S. State		1,212			1,678			538
Foreign		2,790			2,330			1,070
Total current tax expense		7,996			7,010			2,201
Deferred tax provision:
U.S. Federal		63			(20,387	)		(1,432	)
U.S. State		13			(1,853	)		(210	)
Foreign		(137	)		(6,172	)		(1,878	)
Total deferred tax (benefit)		(61	)		(28,412	)		(3,520	)
Total income tax expense (benefit)	$	7,935		$	(21,402	)	$	(1,319	)

		*Year Ended March 31,*
		*2025*					*2024*					*2023*
		*Amount*				%	*Amount*				%	*Amount*				%
Earnings (loss) before income taxes		$	5,961				$	(275,648	)			$	(389	)
Federal income taxes at statutory rates			1,251		21.0	%		(57,886	)	21.0	%		(82	)	21.0	%
State income taxes, net of federal benefit			317		5.3	%		(2,508	)	0.9	%		(1,075	)	276.3	%
Compensation adjustments			2,283		38.3	%		2,738		(1.0	%)		1,506		(387.1	%)
Research and development credit			(1,054	)	(17.7	%)		(1,093	)	0.4	%		(1,010	)	259.6	%
Return to provision adjustment			516		8.7	%		(182	)	0.1	%		(125	)	32.1	%
Subpart F, GILTI, & FDII			(484	)	(8.1	%)		(412	)	0.1	%		(127	)	32.6	%
Foreign rate differential			2,047		34.3	%		(566	)	0.2	%		(313	)	80.5	%
Permanent difference			47		0.8	%		479		(0.2	%)		33		(8.5	%)
Goodwill impairment			-		-	%		32,594		(11.8	%)		-		-	%
Valuation allowance			3,019		50.6	%		5,398		(2.0	%)		(126	)	32.4	%
Other			(7	)	(0.1	%)		36		-	%		-		-	%
Total income tax expense (benefit)	(	$	7,935		133.1	%	$	(21,402	)	7.8	%	$	(1,319	)	339.1	%
Effective income tax rate			133.12	%				7.76	%				339.07	%

	*2025*			*2024*
Deferred tax assets:
Capitalized research expenditures	$	8,148		$	5,116
Credits		2,774			2,528
Allowances and reserves		2,687			3,033
Stock compensation deductible differences		1,632			1,346
Operating lease liabilities		1,860			2,182
Inventories		1,153			668
Net operating loss		3,219			6,633
Other		265			187
Deferred tax assets, gross		21,738			21,693
Valuation allowance		(8,999	)		(5,975	)
Deferred tax assets, net		12,739			15,718
Deferred tax liabilities:
Operating lease right-of-use assets		(1,843	)		(2,120	)
Goodwill and intangible assets		(26,854	)		(28,694	)
Property, plant and equipment		(2,273	)		(2,813	)
Other		(579	)		(579	)
Total deferred tax liabilities		(31,549	)		(34,206	)
Deferred tax asset/(liabilities)		(18,810	)		(18,488	)

	Year Ended March 31,
	2025			2024
Beginning balance	$	5,975		$	582
Additions charged to income tax expense and other accounts		3,657			5,398
Deductions from reserves		(637	)		(5	)
Cumulative translation adjustment		4			-
Ending balance	$	8,999		$	5,975

	*March 31, 2025*		*Expiration Date*
Pre-2018 federal NOL carryforwards	$	-		N/A
Post-2018 federal NOL carryforwards		-	Indefinite
State NOL carryforwards		9,094	March 31, 2030
Foreign NOL carryforwards		11,671	Indefinite

	March 31, 2024		Expiration Date
Pre-2018 federal NOL carryforwards	$	-		N/A
Post-2018 federal NOL carryforwards		-	Indefinite
State NOL carryforwards		8,709	March 31, 2035
Foreign NOL carryforwards		22,595	Indefinite

	*March 31, 2025*		*Expiration Date*
Federal research tax credit carryforwards	$	-		N/A
State research tax credits carryforwards		3,492	March 31, 2036
Federal foreign tax credit carryforwards		15	March 31, 2037

	March 31, 2024		Expiration Date
Federal research tax credit carryforwards	$	-		N/A
State research tax credits carryforwards		3,181	March 31, 2036
Federal foreign tax credit carryforwards		15	March 31, 2037

	Year Ended March 31,
	2025		2024
Beginning balance	$	-	$	92
(Decrease) increase related to prior period tax positions		-		(92	)
Increases related to current period tax positions		-		-
Ending balance	$	-	$	-

MESA LABORATORIES INC /CO/ 10-K