INCOME TAXES

The following table presents the components of income tax expense for the fiscal year ended March 31, 2016. No income tax expense was recorded during the fiscal year ended March 31, 2015.



(In thousands)	For the Fiscal Year Ended March 31, 2016
Federal:
Current	$	140
Deferred	—
Total federal	140
State:
Current	205
Deferred	—
Total state	205
Income tax expense	$	345

Net deferred taxes consisted of the following:



	As of March 31,
(In thousands)	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	99,524		$	103,312
Stock based compensation	4,432			4,144
Intangibles	8,005			1,710
Revenue deferral	46			46
Interest rate derivatives	199			234
Capital loss carryforwards	7,951			8,604
Other	2,224			1,955
Total deferred tax assets before valuation allowance	122,381			120,005
Less: Valuation allowance	(104,285		)	(88,320		)
Total deferred tax assets after valuation allowance	$	18,096		$	31,685
Deferred tax liabilities:
Depreciation and amortization	$	(17,414	)	$	(27,840	)
Intangibles	(682		)	(3,845		)
Total deferred tax liabilities	(18,096		)	(31,685		)
Net deferred tax	$	—		$	—

We have provided a valuation allowance equal to our net deferred tax assets for the fiscal years ended March 31, 2016 and 2015. We are required to recognize all or a portion of our deferred tax assets if we believe that it is more likely than not that such assets will be realized, given the weight of all available evidence. We assess the realizability of the deferred tax assets at each interim and annual balance sheet date. In assessing the need for a valuation allowance, we considered both positive and negative evidence, including recent financial performance, projections of future taxable income and scheduled reversals of deferred tax liabilities. We increased the valuation allowance by $16.0 million and $14.0 million during the fiscal years ended March 31, 2016 and 2015, respectively. We will continue to assess the realizability of the deferred tax assets at each interim and annual balance sheet date based upon actual and forecasted operating results.

At March 31, 2016, we had Federal and state net operating loss carryforwards of approximately $259.0 million available in the United States of America ("US") and approximately $0.5 thousand in Australia to reduce future taxable income. The US federal and state net operating loss carryforwards will begin to expire in 2020. The Australian net operating loss carryforward does not expire.

Under the provisions of the Internal Revenue Code, certain substantial changes in our ownership may result in a limitation on the amount of net operating losses that may be utilized in future years. As of March 31, 2016, approximately $16.0 million of net operating losses from periods prior to March 2006 are subject to an annual Section 382 limitation of approximately $9.4 million. Net operating losses of approximately $246.8 million, which were generated since March 2006 are currently not subject to an annual limitation under Section 382. Future significant ownership changes could cause a portion or all of these net operating losses to expire before utilization.

The differences between the United States statutory federal tax rate and our effective tax rate are as follows:



	For the fiscal years ended March 31,
	2016		2015
Provision at the U.S. statutory federal tax rate	34.0	%	34.0	%
State income taxes, net of federal benefit	5.6	%	(0.1	)%
Change in valuation allowance	(40.3	)%	(44.7	)%
Non-deductible equity compensation	(0.7	)%	(1.9	)%
Sale of subsidiary	—	%	10.8	%
Other	0.5	%	1.9	%
Income tax expense	(0.9	)%	—	%

Since April 1, 2007, we have applied accounting principles that clarify the accounting and disclosure for uncertainty in income taxes. As of March 31, 2016 and 2015, we did not have any uncertainties in income taxes.