INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The total provision (benefit) for income taxes consists of the following for the fiscal years ended (dollars in thousands):

	Fiscal Year Ended March 31,
	2024			2023		2022
Current	$	46		$	97	$	179
Deferred		(5	)		17,881		1,980
Total	$	41		$	17,978	$	2,159
	2024			2023		2022
Federal, Current	$	—		$	—	$	—
Federal, Deferred		(1	)		14,557		1,658
Total Federal	$	(1	)		14,557		1,658
State, Current		46			97		179
State, Deferred		(4	)		3,324		322
Total State	$	42			3,421		501
Total	$	41		$	17,978	$	2,159

Reconciliation of the Statutory Federal Income Tax Rate and the Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate and effective income tax rate is as follows:

	Fiscal Year Ended March 31,
	2024			2023			2022
Statutory federal tax rate		21.0	%		21.0	%		21.0	%
State taxes, net		3.2	%		4.0	%		5.2	%
State tax credits, net		(0.2	)%		(1.9	)%		—	%
Federal tax credit		(0.4	)%		—	%		—	%
Change in valuation reserve		(22.7	)%		(131.3	)%		(0.4	)%
Permanent items		(0.8	)%		(1.0	)%		(1.9	)%
Change in tax contingency reserve		(0.1	)%		(0.1	)%		0.1	%
Equity compensation cancellations		(0.2	)%		(0.1	)%		0.1	%
State return to provision		0.1	%		(0.9	)%		2.3	%
Other, net		(0.3	)%		0.4	%		(0.2	)%
Effective income tax rate		(0.4	)%		(109.9	)%		26.2	%

Schedule of Deferred Tax Assets

The net deferred tax assets reported in the accompanying consolidated financial statements include the following components (dollars in thousands):

	March 31,
	2024			2023
Deferred tax assets:
Inventory, accruals and reserves		737			680
Interest deduction carry-forward		248			71
Federal and state operating loss carry-forwards		20,515			18,849
Tax credit carry-forwards		1,459			1,537
Equity compensation		200			188
Deferred revenue		21			25
Lease liability		527			669
Intangible assets		1,296			984
Other		1,164			798
Total deferred tax assets		26,167			23,801
Valuation allowance		(25,367	)		(22,731	)
Deferred tax assets, net of valuation allowance		800			1,070
Deferred tax liabilities:
Lease ROU asset		(442	)		(549	)
Fixed assets		(430	)		(598	)
Total deferred tax liabilities		(872	)		(1,147	)
Total net deferred tax (liabilities) assets	$	(72	)	$	(77	)

Unrecognized Tax Benefit Activity

Orion had the following unrecognized tax benefit activity (dollars in thousands):

	Fiscal Year Ended March 31,
	2024		2023		2022
Unrecognized tax benefits as of beginning of fiscal year	$	225	$	215	$	285
Additions based on tax positions related to the current period positions		1		1		39
Additions/(reductions) for tax positions of prior years		11		9		(109	)
Unrecognized tax benefits as of end of fiscal year	$	237	$	225	$	215