11. INCOME TAXES

9 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

11. INCOME TAXES

There is no provision for income taxes for the nine months ended December 31, 2015 as the Company currently estimates its effective tax rate to be zero due to uncertainty of income in future interim quarters of the current year and due to net operating loss carryforwards.

For the nine months ended December 31, 2014, the provision for income taxes consisted of $31,350 of foreign withholding taxes on payments in connection with a patent license agreement. Excluding the impact of foreign withholding taxes, the current year annual effective tax rate is estimated to be zero due to the anticipated utilization of available net operating loss (“NOL”) carryforwards to reduce U.S. taxable income.

At December 31, 2015 and 2014, the Company had deferred tax assets associated with federal net operating losses (“NOLs”), related state NOLs, foreign tax credits and certain Federal and California research and development tax credits, but recorded a corresponding full valuation allowance as it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated. At December 31, 2015, the Company has no liabilities for uncertain tax positions.