Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

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,
	2017			2016		2015
Current	$	(261	)	$	36	$	49
Deferred	—			—		—
	$	(261	)	$	36	$	49

	2017			2016		2015
Federal	$	(283	)	$	15	$	—
State	22			21		49
	$	(261	)	$	36	$	49

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,
	2017		2016		2015
Statutory federal tax rate	34.0	%	34.0	%	34.0	%
State taxes, net	3.5	%	2.8	%	3.6	%
Federal tax credit	—	%	—	%	0.2	%
State tax credit	—	%	—	%	0.1	%
Change in valuation reserve	(37.6	)%	(29.1	)%	(37.0	)%
Permanent items	(0.5	)%	(7.5	)%	(0.1	)%
Change in tax contingency reserve	1.0	%	(0.1	)%	—	%
Federal Refunds	1.4	%	—	%	—	%
Other, net	0.3	%	(0.3	)%	(1.0	)%
Effective income tax rate	2.1	%	(0.2	)%	(0.2	)%

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,
	2017			2016
Inventory, accruals and reserves	$	4,016		$	3,686
Other	54			187
Deferred revenue	(141		)	73
Valuation allowance	(3,929		)	(3,946		)
Total net current deferred tax assets and liabilities	$	—		$	—
Federal and state operating loss carry-forwards	23,927			19,727
Tax credit carry-forwards	1,403			1,475
Non-qualified stock options	3,265			3,125
Deferred revenue	(51		)	(31		)
Fixed assets	(1,360		)	(1,493		)
Intangible assets	(1,034		)	(1,297		)
Valuation allowance	(26,150		)	(21,506		)
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,
	2017			2016		2015
Unrecognized tax benefits as of beginning of fiscal year	$	227		$	212	$	210
Additions based on tax positions related to the current period positions	2			15		2
Reduction for tax positions of prior years	$	(116	)	$	—	$	—
Unrecognized tax benefits as of end of fiscal year	$	113		$	227	$	212