Summary of Significant Accounting Policies (Tables)

6 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Schedule of accounts receivable

Orion's accounts receivable and allowance for doubtful accounts balances were as follows (dollars in thousands):

	September 30, 2016			March 31, 2016
Accounts receivable, gross	$	12,400		$	11,394
Allowance for doubtful accounts	(164		)	(505		)
Accounts receivable, net	$	12,236		$	10,889

Schedule of financing receivables

Additional disclosures on the credit quality of Orion’s financing receivables are as follows:

Aging Analysis as of September 30, 2016 (dollars 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	$	119	$	1	$	3	$	4	$	123
Lease balances included in consolidated accounts receivable—long-term	13		—		—		—		13
Total gross sales-type leases	132		1		3		4		136
Allowance	—		—		—		—		—
Total net sales-type leases	$	132	$	1	$	3	$	4	$	136

Aging Analysis as of March 31, 2016 (dollars 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	$	294	$	4	$	10		$	14		$	308
Lease balances included in consolidated accounts receivable—long-term	101		—		—			—			101
Total gross sales-type leases	395		4		10			14			409
Allowance	—		—		(9		)	(9		)	(9		)
Total net sales-type leases	$	395	$	4	$	1		$	5		$	400

Inventories

Orion's inventory balances were as follows (dollars in thousands):

	Cost		Obsolescence Reserve			Net
As of September 30, 2016
Raw materials and components	$	9,356	$	(1,279	)	$	8,077
Work in process	1,280		(136		)	1,144
Finished goods	8,941		(1,155		)	7,786
Total	$	19,577	$	(2,570	)	$	17,007
As of March 31, 2016
Raw materials and components	$	10,556	$	(1,052	)	$	9,504
Work in process	2,045		(119		)	1,926
Finished goods	6,550		(956		)	5,594
Total	$	19,151	$	(2,127	)	$	17,024

Prepaid expenses and other current assets

Prepaid expenses and other current assets include the following (dollars in thousands):

	September 30, 2016		March 31, 2016
Unbilled accounts receivable	$	524	$	4,307
Other prepaid expenses	663		731
Total	$	1,187	$	5,038

Property and equipment

Property and equipment were comprised of the following (dollars in thousands):

	September 30, 2016			March 31, 2016
Land and land improvements	$	425		$	421
Buildings and building improvements	9,245			11,849
Furniture, fixtures and office equipment	6,997			7,233
Leasehold improvements	162			148
Equipment leased to customers	4,997			4,997
Plant equipment	11,322			10,805
Construction in progress	152			128
	33,300			35,581
Less: accumulated depreciation and amortization	(19,251		)	(18,577		)
Property and equipment, net	$	14,049		$	17,004

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):

	September 30, 2016			March 31, 2016
Equipment	$	581		$	408
Less: accumulated depreciation and amortization	(131		)	(65		)
Net Equipment	$	450		$	343

Schedule of intangible assets

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

	September 30, 2016							March 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Patents	$	2,581	$	(1,135	)	$	1,446	$	2,377	$	(1,053	)	$	1,324
Licenses	58		(58		)	—		58		(58		)	—
Trade name and trademarks	1,965		—			1,965		1,956		—			1,956
Customer relationships	3,600		(2,821		)	779		3,600		(2,512		)	1,088
Developed technology	900		(346		)	554		900		(265		)	635
Non-competition agreements	100		(65		)	35		100		(55		)	45
Total	$	9,204	$	(4,425	)	$	4,779	$	8,991	$	(3,943	)	$	5,048

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

Fiscal 2017	$	415
Fiscal 2018	616
Fiscal 2019	440
Fiscal 2020	354
Fiscal 2021	280
Fiscal 2022	162
Thereafter	547
Total	$	2,814

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

Schedule of other long-term assets

Other long-term assets include the following (dollars in thousands):

	September 30, 2016		March 31, 2016
Deferred financing costs	$	37	$	92
Security deposits	116		87
Other	15		6
Total	$	168	$	185

Schedule of accrued expenses and other

Accrued expenses and other include the following (dollars in thousands):

	September 30, 2016		March 31, 2016
Compensation and benefits	$	1,741	$	1,794
Sales tax	240		913
Contract costs	485		586
Legal and professional fees (1)	2,086		2,348
Warranty	804		554
Other accruals	385		391
Total	$	5,741	$	6,586

(1) Includes a $1,400 loss contingency recorded in fiscal 2016.

Changes in warranty accrual

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

	Three Months Ended September 30,						Six Months Ended September 30,
	2016			2015			2016			2015
Beginning of period (1)	$	1,038		$	1,062		$	864		$	1,015
Provision to product cost of revenue	77			60			251			89
Charges	(1		)	(79		)	(1		)	(61		)
End of period (1)	$	1,114		$	1,043		$	1,114		$	1,043

(1) Includes a $310 reserve related to solar operating system warranties.

Summary of the effect of net income per common share

The effect of net loss per common share is calculated based upon the following:

	Three Months Ended September 30,						Six Months Ended September 30,
	2016			2015			2016			2015
Numerator:
Net loss (in thousands)	$	(970	)	$	(3,600	)	$	(3,910	)	$	(7,252	)
Denominator:
Weighted-average common shares outstanding	28,171,899			27,598,492			28,029,526			27,540,378
Weighted-average common shares and common share equivalents outstanding	28,171,899			27,598,492			28,029,526			27,540,378
Net loss per common share:
Basic	$	(0.03	)	$	(0.13	)	$	(0.14	)	$	(0.26	)
Diluted	$	(0.03	)	$	(0.13	)	$	(0.14	)	$	(0.26	)

Number of potentially dilutive securities

The following table indicates the number of potentially dilutive securities excluded from the calculation of dilution because their inclusion would have been anit-dilutive. Amounts are as of the end of each period:

	September 30, 2016	September 30, 2015
Common stock options	1,942,446	2,283,836
Restricted shares	1,723,920	1,053,865
Total	3,666,366	3,337,701