ACCRUED EXPENSES AND OTHER

3 Months Ended

Jun. 30, 2024

Other Liabilities Disclosure [Abstract]

ACCRUED EXPENSES AND OTHER

NOTE 10 — ACCRUED EXPENSES AND OTHER

As of June 30, 2024 and March 31, 2024, accrued expenses and other included the following (dollars in thousands):

	June 30, 2024		March 31, 2024
Accrued acquisition earn-out	$	875	$	875
Other accruals		1,963		1,854
Compensation and benefits		2,629		2,255
Credits due to customers		1,401		1,167
Accrued project costs		2,236		2,366
Warranty		545		552
Sales returns reserve		88		106
Sales tax		68		219
Legal and professional fees		30		46
Total	$	9,835	$	9,440

Orion generally offers a limited warranty of one to ten years on its lighting products, including the pass through of standard warranties offered by major original equipment component manufacturers. The manufacturers’ warranties cover lamps, power supplies, LED modules, chips and drivers, control devices, and other fixture related items, which are significant components in Orion's lighting products.

Changes in Orion’s warranty accrual (both current and long-term) were as follows (dollars in thousands):

	For the Three Months Ended June 30,
	2024			2023
Beginning of period	$	725		$	646
Accruals		108			64
Warranty claims (net of vendor reimbursements)		(105	)		(56	)
End of period	$	728		$	654

Effective on October 5, 2022, Orion acquired all the membership interests of Voltrek, an electric vehicle charging station solutions provider (the “Voltrek Acquisition”). The Voltrek Acquisition agreement includes, depending upon the relative EBITDA growth of Voltrek’s business in fiscal 2023, 2024 and 2025, Orion could pay up to an additional $3.0 million, $3.5 million and $7.15 million, respectively, in earn-out payments. These compensatory payments do not fall within the scope of ASC 805, Business Combinations, and will be expensed over the course of the earn-out periods to the extent they are earned. As of June 30, 2024, Orion recorded $0.9 million to accrued expenses for the fiscal 2025 earn-out opportunity, which is recorded in accrued expenses and other.