Digital Turbine, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Mar. 31, 2016

The provision (benefit) for income taxes by taxing jurisdiction was as follows:

A reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision follows:



	Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014
Statutory federal income taxes	$	(9,736	)	$	(8,365	)	$	(6,017	)
State income taxes, net of federal benefit	—			17			(765		)
Non-deductible expenses	821			2,171			895
Rate change	(224		)	—			—
Change in uncertain tax liability	(123		)	324			(136		)
Change in valuation allowance	10,106			6,600			5,751
Return-to-provision adjustments	(630		)	—			—
Income tax provision/(benefit)	$	214		$	747		$	(272	)

Deferred tax assets and liabilities consist of the following:



	Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014
Deferred income tax assets
Net operating loss carryforward	$	31,840		$	25,668		$	19,621
Stock-based compensation	1,965			1,270			15,360
Credit carryforwards	129			123			268
Other	1,469			1,324			425
Gross deferred income tax assets	35,403			28,385			35,674
Valuation allowance	(32,026		)	(21,920		)	(35,154		)
Net deferred income tax assets	$	3,377		$	6,465		$	520
Deferred income tax liabilities
Depreciation and amortization	$	(754	)	$	(751	)	$	—
Intangibles and goodwill	(1,947		)	(5,069		)	(269		)
Other	(175		)	(780		)	—
Net deferred income tax assets/(liabilities)	$	501		$	(135	)	$	251

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended March 31, 2016, 2015, and 2014 is as follows:



	2016			2015		2014
Balance at April 1	$	905		$	61	$	61
Additions for tax position of prior years	—			844		—
Reductions for tax positions of prior years	(122		)	—		—
Balance at March 31	$	783		$	905	$	61