Income Taxes	3 Months Ended
Dec. 31, 2015
Income Taxes
Income Taxes	3. Income Taxes The income tax benefit for the three months ended December 31, 2015 was $54,000 as compared to an income tax benefit of $411,000 for the three month ended December 31, 2014. The effective tax rate for the three months ended December 31, 2015 was 20%. The effective tax rate for the three months ended December 31, 2015 differs from the statutory rate due to the limitation in the amount of tax benefit that may be realized. On December 18, 2015, the Protecting Americans from Tax Hikes (PATH) Act of 2015 was enacted. This legislation retroactively extended various temporary tax provisions which expired on December 31, 2014, including the permanent extension of the R&D Tax Credit. No income tax benefit was recorded in the period on the retroactive benefit for the period from January 1, 2015 to September 30, 2015 due to the uncertainty on the Company’s ability to generate future taxable income. The effective tax rate for the three months ended December 31, 2014 was (224%). The effective tax rate for the three months ended December 31, 2014 differs from the statutory rate primarily because of the retroactive extension of the Federal Research and Development Tax Credit (“R&D Tax Credit”) and the Domestic Production Activities Deduction (“DPAD”). The retroactive extension of the R&D Tax Credit was effective January 1, 2014. The current year estimated annual effective income tax rate reflects the benefit from the R&D Tax Credit only for the three months ended December 31, 2014 as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2014. In addition, the retroactive benefit for the period from January 1, 2014 to September 30, 2014 was reflected as a discrete item which further reduced the Company’s income tax expense for the three months ended December 31, 2014. In the period ended June 30, 2015, a valuation allowance was recorded on a majority of the Company’s federal and state deferred tax assets, net of liabilities, due to the uncertainty on the Company’s ability to generate sufficient future taxable income to realize such deferred tax assets. The remaining amount of the deferred tax assets recognized are attributable to tax planning strategies and the ability to carry-back federal tax losses to claim a tax refund. The Company will continue to maintain the balance of the valuation allowance until the Company generates a sufficient level of profitability to warrant a conclusion that it no longer is more likely than not that these net state deferred tax assets will not be realized in future periods. On September 13, 2014, the U.S. Treasury Department and the IRS issued final regulations that addressed cost incurred in acquiring, producing, or improving tangible property (the “tangible property regulations”). The tangible property regulations were generally effective for tax years beginning on or after January 1, 2014 and required the Company to make additional tax accounting method changes as of October 1, 2014. However, the impact of these changes to the Company’s consolidated financial statements was immaterial as of and for the three months ended December 31, 2015 and 2014.

3. Income Taxes

The income tax benefit for the three months ended December 31, 2015 was $54,000 as compared to an income tax benefit of $411,000 for the three month ended December 31, 2014.

The effective tax rate for the three months ended December 31, 2015 was 20%. The effective tax rate for the three months ended December 31, 2015 differs from the statutory rate due to the limitation in the amount of tax benefit that may be realized.

On December 18, 2015, the Protecting Americans from Tax Hikes (PATH) Act of 2015 was enacted. This legislation retroactively extended various temporary tax provisions which expired on December 31, 2014, including the permanent extension of the R&D Tax Credit. No income tax benefit was recorded in the period on the retroactive benefit for the period from January 1, 2015 to September 30, 2015 due to the uncertainty on the Company’s ability to generate future taxable income.

The effective tax rate for the three months ended December 31, 2014 was (224%). The effective tax rate for the three months ended December 31, 2014 differs from the statutory rate primarily because of the retroactive extension of the Federal Research and Development Tax Credit (“R&D Tax Credit”) and the Domestic Production Activities Deduction (“DPAD”). The retroactive extension of the R&D Tax Credit was effective January 1, 2014. The current year estimated annual effective income tax rate reflects the benefit from the R&D Tax Credit only for the three months ended December 31, 2014 as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2014. In addition, the retroactive benefit for the period from January 1, 2014 to September 30, 2014 was reflected as a discrete item which further reduced the Company’s income tax expense for the three months ended December 31, 2014.

In the period ended June 30, 2015, a valuation allowance was recorded on a majority of the Company’s federal and state deferred tax assets, net of liabilities, due to the uncertainty on the Company’s ability to generate sufficient future taxable income to realize such deferred tax assets. The remaining amount of the deferred tax assets recognized are attributable to tax planning strategies and the ability to carry-back federal tax losses to claim a tax refund. The Company will continue to maintain the balance of the valuation allowance until the Company generates a sufficient level of profitability to warrant a conclusion that it no longer is more likely than not that these net state deferred tax assets will not be realized in future periods.

On September 13, 2014, the U.S. Treasury Department and the IRS issued final regulations that addressed cost incurred in acquiring, producing, or improving tangible property (the “tangible property regulations”). The tangible property regulations were generally effective for tax years beginning on or after January 1, 2014 and required the Company to make additional tax accounting method changes as of October 1, 2014. However, the impact of these changes to the Company’s consolidated financial statements was immaterial as of and for the three months ended December 31, 2015 and 2014.