XML 76 R10.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Fair Value Measurements | 9 Months Ended
--- | ---
Dec. 31, 2014
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 4. Fair Value Measurements A valuation hierarchy for disclosure of the inputs to valuation used to measure fair value has been established. This hierarchy prioritizes the inputs into three broad levels as follows:
| Level 1 | - | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
| Level 2 | - | Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
| Level 3 | - | Unobservable inputs that reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.
The Company provides a gross presentation of activity within Level 3 measurement roll-forward and details of transfers in and out of Level 1 and 2 measurements. A change in the hierarchy of an investment from its current level is reflected in the period during which the pricing methodology of such investment changes. Disclosure of the transfer of securities from Level 1 to Level 2 or Level 3 is made in the event that the related security is significant to total cash and investments. The Company did not have any transfers of assets and liabilities between Level 1 and Level 3 of the fair value measurement hierarchy during the three or nine months ended December 31, 2014. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides the assets and liabilities carried at fair value, measured as of December 31, 2014 and March 31, 2014 (in thousands):
| Total |  |  | Quoted Prices in |  |  | Significant Other |  |  | Significant |
| Carrying |  |  | Active Markets |  |  | Observable Inputs |  |  | Unobservable Inputs |
| Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 22,516 |  |  | $ | 22,516 |  |  | $ | - |  |  | $ | - |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrants | $ | 3,914 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,914 |
| Total |  |  | Quoted Prices in |  |  | Significant Other |  |  | Significant |
| Carrying |  |  | Active Markets |  |  | Observable Inputs |  |  | Unobservable Inputs |
| Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
March 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 17,675 |  |  | $ | 17,675 |  |  | $ | - |  |  | $ | - |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrants | $ | 2,601 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,601 |
The table below reflects the activity for the Company’s major classes of liabilities measured at fair value (in thousands):
|  |  |  |  | Warrants |
April 1, 2014 |  |  |  |  | $ | 2,601 |
Warrant issuance with Equity Raise |  |  |  |  |  | 4,255 |
Warrant issuance with Senior Secured Term Loan |  |  |  |  |  | 106 |
Mark to market adjustment |  |  |  |  |  | (3,048 | )
Balance at December 31, 2014 |  |  |  |  | $ | 3,914 |
| Derivative |  |  |  |  |
| Liability |  |  | Warrants |
April 1, 2013 | $ | 529 |  |  | $ | 3,633 |
Warrant issuance with Senior Secured Term Loan |  | - |  |  |  | 315 |
Mark to market adjustment |  | (525 | ) |  |  | (1,347 | )
Extinguishment of derivative liability |  | (4 | ) |  |  | - |
Balance at March 31, 2014 | $ | - |  |  | $ | 2,601 |
The following table provides the assets and liabilities measured at fair value on a non-recurring basis, as of December 31, 2014 and March 31, 2014 (in thousands). During the three months ended September 30, 2014 the following asset was determined to be no longer recoverable and was fully impaired. See note 14, “Minority Investments” for further details:
| Total |  |  | Quoted Prices in |  |  | Significant Other |  |  | Significant |
| Carrying |  |  | Active Markets |  |  | Observable Inputs |  |  | Unobservable Inputs |
| Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in unconsolidated entity – Blade Dynamics | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
March 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in unconsolidated entity – Blade Dynamics | $ | 3,690 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,690 |
Valuation Techniques Cash Equivalents Cash equivalents consist of highly liquid instruments with maturities of three months or less that are regarded as high quality, low risk investments and are measured using such inputs as quoted prices, and are classified within Level 1 of the valuation hierarchy. Cash equivalents consist principally of certificates of deposits and money market accounts. Derivative Liability In April 2012, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Capital Ventures International (“CVI”), an affiliate of Heights Capital Management, under which the Company issued a $25.0 million, 7% convertible note (the “Initial Note”). In December 2012, the Company entered into an agreement with CVI pursuant to which it exchanged the Initial Note for the Exchanged Note. The Exchanged Note was extinguished as of March 31, 2014. The Company had identified all of the derivatives (“Derivative Liability”) associated with the extinguished Exchanged Note which include holder change of control redemption rights, issuer optional redemption rights, sale redemption rights and a feature to convert the Exchanged Note into equity at the holder’s option. The Derivative Liability was subject to revaluation at each balance sheet date, and any change in fair value was recorded as a change in fair value in derivatives and warrants until its expiration. The Company relied on assumptions in a lattice model to determine the fair value of Derivative Liability. The Company had valued the Derivative Liability within Level 3 of the valuation hierarchy. (See Note 10, “Debt,” for further discussion of the Exchanged Note, Derivative Liability and valuation assumptions used.) Warrants Warrants were issued in conjunction with the Purchase Agreement with CVI, the equity offering to a single investor in November 2014, and the Term Loans. (See Note 10, “Debt,” and Note 11 “Warrants and Derivative Liabilities,” for additional information.) These warrants are subject to revaluation at each balance sheet date, and any change in fair value will be recorded as a change in fair value in derivatives and warrants until the earlier of their exercise or expiration. The Company relies on various assumptions in a lattice model to determine the fair value of warrants. The Company has valued the warrants within Level 3 of the valuation hierarchy. (See Note 11, “Warrants and Derivative Liabilities,” for a discussion of the warrants and the valuation assumptions used.) Minority Investment The Company accounts for the minority investment in Blade Dynamics on a cost basis (See Note 14, “Minority Investments”). During the year ended March 31, 2014, the Company determined that as a result of its efforts to sell its investment in Blade Dynamics, certain indicators of impairment existed which required the Company to perform further analysis. Based on analysis which included potential sale scenarios of the investment, the Company recorded an impairment charge of approximately $1.3 million and reported the investment at its estimated fair value in the fourth quarter ended March 31, 2014. During the three months ended September 30, 2014, the Company determined that as a result of a dilutive financing which resulted in the Company losing certain of its shareholder rights, as well as certain operational issues and adverse changes to the potential sale scenarios previously considered, its investment in Blade Dynamics was no longer recoverable and therefore recorded a charge of $3.5 million to fully impair the investment.

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

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13537-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13504-108611 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration