Income Taxes (Tables)

12 Months Ended

Mar. 31, 2016

Schedule of components of income tax expense (benefit)

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



	Fiscal Year Ended March 31,
	2016		2015		2014
Current	$	36	$	49	$	19
Deferred	—		—		(2,077		)
	$	36	$	49	$	(2,058	)

	2016		2015		2014
Federal	$	15	$	—	$	(1,830	)
State	21		49		(228		)
	$	36	$	49	$	(2,058	)

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,
	2016		2015		2014
Statutory federal tax rate	34.0	%	34.0	%	34.0	%
State taxes, net	2.8	%	3.6	%	2.8	%
Federal tax credit	—	%	0.2	%	0.9	%
State tax credit	—	%	0.1	%	0.4	%
Change in valuation reserve	(29.1	)%	(37.0	)%	(10.2	)%
Permanent items	(7.5	)%	(0.1	)%	(2.9	)%
Change in tax contingency reserve	(0.1	)%	—	%	(0.3	)%
Other, net	(0.3	)%	(1.0	)%	0.2	%
Effective income tax rate	(0.2	)%	(0.2	)%	24.9	%

Schedule of deferred tax assets and liabilities

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



	March 31,
	2016			2015
Inventory, accruals and reserves	$	3,686		$	5,297
Other	187			159
Deferred revenue	73			91
Valuation allowance	(3,946		)	(5,547		)
Total net current deferred tax assets and liabilities	$	—		$	—
Federal and state operating loss carryforwards	19,727			13,154
Tax credit carryforwards	1,475			1,475
Non-qualified stock options	3,125			2,914
Deferred revenue	(31		)	7
Fixed assets	(1,493		)	(1,698		)
Intangible assets	(1,297		)	(1,687		)
Valuation allowance	(21,506		)	(14,165		)
Total net long-term deferred tax assets and liabilities	$	—		$	—
Total net deferred tax assets	$	—		$	—

Unrecognized tax benefit activity

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



	Fiscal Year Ended March 31,
	2016		2015		2014
Unrecognized tax benefits as of beginning of fiscal year	$	212	$	210	$	188
Additions based on tax positions related to the current period positions	15		2		22
Unrecognized tax benefits as of end of fiscal year	$	227	$	212	$	210