Summary of Significant Accounting Policies (Tables)

9 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Due from the third party finance company in future periods

As of December 31, 2015, the following amounts were due from the third party finance company in future periods (in thousands):

Fiscal 2016	$	247
Fiscal 2017	9
Total gross financed receivable	$	256
Less: amount representing interest	(5		)
Total net financed receivable	$	251

Credit quality of the Company's financing receivables using Aging Analysis

Aging Analysis as of December 31, 2015 (in thousands):

	Not Past Due		1-90 days past due		Greater than 90 days past due			Total past due			Total sales-type leases
Lease balances included in consolidated accounts receivable—current	$	542	$	18	$	2		$	20		$	562
Lease balances included in consolidated accounts receivable—long-term	141		—		—			—			141
Total gross sales-type leases	683		18		2			20			703
Allowance	—		—		(1		)	(1		)	(1		)
Total net sales-type leases	$	683	$	18	$	1		$	19		$	702

Inventories

Inventories were comprised of the following as of the dates set forth below (in thousands):

	March 31, 2015		December 31, 2015
Raw materials and components	$	8,474	$	10,265
Work in process	1,588		1,546
Finished goods	4,221		6,624
	$	14,283	$	18,435

Property and equipment

Property and equipment were comprised of the following as of the dates set forth below (in thousands):

	March 31, 2015			December 31, 2015
Land and land improvements	$	1,511		$	1,515
Buildings	14,441			14,443
Furniture, fixtures and office equipment	8,600			8,676
Leasehold improvements	148			148
Equipment leased to customers under Power Purchase Agreements	4,997			4,997
Plant equipment	11,084			11,077
Construction in progress	379			118
	41,160			40,974
Less: accumulated depreciation and amortization	(19,937		)	(21,788		)
Net property and equipment	$	21,223		$	19,186

Depreciation is provided over the estimated useful lives of the respective assets, using the straight-line method. Depreciable lives by asset category are as follows:

Land improvements	10-15 years
Buildings and building improvements	3-39 years
Furniture, fixtures and office equipment	2-10 years
Leasehold improvements	Shorter of asset life or life of lease
Equipment leased to customers under Power Purchase Agreements	20 years
Plant equipment	3-10 years

Schedule of equipment under capital leases

Equipment included above under capital leases was as follows (in thousands):

	March 31, 2015		December 31, 2015
Equipment	$	—	$	389
Less: accumulated depreciation and amortization	—		(46		)
Net Equipment	$	—	$	343

Schedule of Intangible Assets and Goodwill

The components of, and changes in, the carrying amount of other intangible assets were as follows as of the dates set forth below (in thousands):

	March 31, 2015					December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Patents	$	2,447	$	(906	)	$	2,456	$	(1,010	)
Licenses	58		(58		)	58		(58		)
Trade name and trademarks	1,958		—			1,956		—
Customer relationships	3,600		(1,620		)	3,600		(2,357		)
Developed technology	900		(109		)	900		(224		)
Non-competition agreements	100		(35		)	100		(50		)
Total	$	9,063	$	(2,728	)	$	9,070	$	(3,699	)

Goodwill is allocated to each operating segment during the nine months ended December 31, 2015 as follows (in thousands):

	U.S. Markets		Orion Engineered Systems		Orion Distribution Services		Corporate and Other		Total
Goodwill at December 31, 2015	$	2,371	$	2,038	$	—	$	—	$	4,409

Amortizable intangible assets are amortized over their estimated economic useful life to reflect the pattern of economic benefits consumed based upon the following lives and methods:

Patents	10-17 years	Straight-line
Licenses	7-13 years	Straight-line
Customer relationships	5-8 years	Accelerated based upon the pattern of economic benefits consumed
Developed technology	8 years	Accelerated based upon the pattern of economic benefits consumed
Non-competition agreements	5 years	Straight-line

The estimated amortization expense for each of the next five years is shown below (in thousands):

Fiscal 2016	$	257
Fiscal 2017	883
Fiscal 2018	608
Fiscal 2019	432
Fiscal 2020	346
Fiscal 2021	271
Thereafter	618
Total	$	3,415

Changes in warranty accrual

Changes in the Company’s warranty accrual were as follows (in thousands):

	Three Months Ended December 31,						Nine Months Ended December 31,
	2014			2015			2014		2015
Beginning of period	$	466		$	1,043		$	263	$	1,015
Provision to product cost of revenue	685			(1		)	718		88
Charges	(35		)	(104		)	135		(165		)
End of period	$	1,116		$	938		$	1,116	$	938

Summary of the effect of net income per common share

The effect of net loss per common share is calculated based upon the following shares (in thousands except share amounts):

	Three Months Ended December 31,						Nine Months Ended December 31,
	2014			2015			2014			2015
Numerator:
Net loss (in thousands)	$	(4,663	)	$	(2,004	)	$	(27,368	)	$	(9,256	)
Denominator:
Weighted-average common shares outstanding	21,882,741			27,671,633			21,791,184			27,584,288
Weighted-average effect of assumed conversion of stock options and restricted shares	—			—			—			—
Weighted-average common shares and common share equivalents outstanding	21,882,741			27,671,633			21,791,184			27,584,288
Net loss per common share:
Basic	$	(0.21	)	$	(0.07	)	$	(1.26	)	$	(0.34	)
Diluted	$	(0.21	)	$	(0.07	)	$	(1.26	)	$	(0.34	)

Number of potentially dilutive securities

The following table indicates the number of potentially dilutive securities outstanding as of the end of each period:

	December 31, 2014	December 31, 2015
Common stock options	2,529,484	2,178,826
Restricted shares	718,684	1,005,539
Total	3,248,168	3,184,365