As of March 31, 2026 and March 31, 2025, Accrued expenses and other included the following (dollars in thousands):


	March 31, 2026		March 31, 2025
Accrued acquisition earnout	$	—	$	3,263
Other accruals		1,857		2,180
Compensation and benefits		3,620		2,424
Credits due to customers		1,193		1,581
Accrued project costs		2,979		2,283
Warranty		361		449
Sales tax		322		273
Legal and professional fees		294		177
Sales returns reserve		102		98
Total	$	10,728	$	12,728

Orion generally offers a limited warranty of one to 10 years on its lighting products including the pass through of standard warranties offered by major original equipment component manufacturers. The manufacturers’ warranties cover lamps, ballasts, LED modules, LED chips, LED drivers, control devices, and other fixture related items, which are significant components in Orion's lighting products.

Changes in Orion’s warranty accrual (both current and long-term) were as follows (dollars in thousands):


	March 31,
	2026			2025			2024
Beginning of year	$	639		$	725		$	646
Accruals		266			350			473
Warranty claims (net of vendor reimbursements)		(376	)		(436	)		(394	)
Ending balance	$	529		$	639		$	725

As of March 31, 2025, the balance of the accrued earnout liability with respect to Orion’s October 5, 2022 acquisition of Voltrek was $3.3 million. During the second quarter of fiscal 2026, Orion issued common stock to the prior owner of Voltrek with a value of $1 million and paid $875 thousand in cash as partial payment of the accrued acquisition earnout. These compensatory payments have been expensed over the course of the earnout periods.

On March 17, 2026, Orion entered into a settlement agreement (the “Settlement Agreement”) with Final Frontier, LLC (“Final Frontier”) and Kathleen M. Connors (“Ms. Connors”), personally and as Trustee of the Kathleen M. Connors 2019 Revocable Trust (“Connors Trust” together with Final Frontier and Ms. Connors, the “Connors Parties”), in order to reach a final and complete resolution and settlement of the dispute regarding Orion’s remaining earnout obligations owed to Final Frontier, as well as to reach a final and complete resolution and settlement of related arbitrations and terminate related agreements, as described in Note 12 – Debt, below.

Under the terms of the Settlement Agreement, the Company made a one-time cash payment of $3.0 million (the “Settlement Amount”) to Final Frontier on March 18, 2026. This compensatory payment has been expensed over the course of the earnout periods. As a result of the payment of the Settlement Amount, the balance of the accrued earnout liability with respect to the Voltrek acquisition as of March 31, 2026 was $0 million. See Note 12 - Debt, below for additional details around the previously accrued earnout liability and the settlement of the earnout liability.