XML 56 R15.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Mar. 31, 2015
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Note 8. Income Taxes The Company is included in the U.S. federal and state (California) tax returns with its Former Parent through the March 26, 2014 closing date of the IPO. Post-IPO, the Company filed separate, stand-alone tax returns. During the year ended March 31, 2015, following the deconsolidation, the Company adjusted its net operating loss (“NOL”) carry forward to reflect the value of the NOL available to the Company in future periods. The following summarizes the income tax provision (benefit):
|  | For The Years Ended |
|  | March 31, |
|  | 2015 |  |  | 2014 |
Federal |  |  |  |  |  |  |  |
Current |  | $ | - |  |  | $ | - |
Deferred |  |  | (1,754,000 | ) |  |  | (1,031,000 | )
State and local |  |  |  |  |  |  |  |
Current |  |  | - |  |  |  | - |
Deferred |  |  | (309,000 | ) |  |  | (182,000 | )
|  |  | (2,063,000 | ) |  |  | (1,213,000 | )
Change in valuation allowance |  |  | 2,063,000 |  |  |  | 1,213,000 |
Income tax provision (benefit) |  | $ | - |  |  | $ | - |
The Company has the following net deferred tax assets:
|  | March 31, |
|  | 2015 |  |  | 2014 |
Net operating loss carryforwards |  | $ | 3,224,000 |  |  | $ | 1,427,000 |
Stock-based compensation |  |  | 262,000 |  |  |  | - |
Charitable donation carryforwards |  |  | 4,000 |  |  |  | - |
Gross deferred tax assets |  |  | 3,490,000 |  |  |  | 1,427,000 |
Valuation allowance |  |  | (3,490,000 | ) |  |  | (1,427,000 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
|  | For The Years Ended |
|  | March 31, |
|  | 2015 |  |  | 2014 |
Expected federal statutory rate |  |  | (34.0 | )% |  |  | (34.0 | )%
State tax rate, net of federal benefit |  |  | (6.0 | )% |  |  | (6.0 | )%
Change in effective state tax rate |  |  | 0.0 | % |  |  | (0.3 | )%
Permanent items - stock-based compensation |  |  | 2.5 | % |  |  | 0.0 | %
Permanent items - non-deductible merger expenses |  |  | 0.4 | % |  |  | 0.0 | %
Permanent items - other |  |  | 0.1 | % |  |  | 1.3 | %
Adjustment of NOL due to deconsolidation |  |  | 6.2 | % |  |  | 0.0 | %
Change in valuation allowance |  |  | 30.8 | % |  |  | 39.0 | %
Income tax provision (benefit) |  |  | 0.0 | % |  |  | 0.0 | %
For the years ended March 31, 2015 and 2014, the Company had approximately $8,059,000 and $2,539,000 of federal and state net operating loss carryovers (“NOLs”), respectively, which begin to expire in 2033. These net operating loss carryovers are subject to annual limitations under Internal Revenue Code Section 382 because there has been a greater than 50% ownership change following the March 26, 2014 closing of the IPO. The Company, after considering all available evidence, fully reserved its deferred tax assets since it is more likely than not that such benefits will not be realized in future periods. The Company has incurred losses for both financial reporting and income tax purposes for the years ended March 31, 2015 and 2014. The Company will continue to evaluate its deferred tax assets to determine whether any changes in circumstances could affect the realization of their future benefit. If it is determined in future periods that portions of the Company’s deferred tax assets satisfy the realization standards, the valuation allowance will be reduced accordingly. The Company does not have any tax positions for which it is reasonably possible that the total amount of gross unrecognized tax benefits will increase or decrease within 12 months of March 31, 2015. The unrecognized tax benefits may increase or change during the next year for items that arise in the ordinary course of business. The Company has elected to reflect interest and penalties attributable to income taxes, to the extent they arise, as a component of its income tax provision or benefit.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration