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Discontinued Operations | 12 Months Ended
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Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On April 29, 2018, the Company entered into two distinct disposition agreements with respect to selected assets owned by our subsidiaries. DT APAC and DT Singapore (together, “Pay Seller”), each wholly owned subsidiaries of the Company, entered into an Asset Purchase Pay Agreement (the “Pay Agreement”), dated as of April 23, 2018, with Chargewave Ptd Ltd (“Pay Purchaser”) to sell certain assets (the “Pay Assets”) owned by the Pay Seller related to the Company’s Direct Carrier Billing business. The Pay Purchaser is principally owned and controlled by Jon Mooney, an officer of the Pay Seller. At the closing of the asset sale, Mr. Mooney will no longer be employed by the Company or Pay Seller. As consideration for this asset sale, Digital Turbine is entitled to receive certain license fees, profit sharing and equity participation rights as outlined in the Company’s Form 8-K filed May 1, 2018 with the Securities and Exchange Commission. The transaction is subject to closing conditions and is expected to be completed in June 2018. With the sale of these assets, the Company has determined that is will exit the segment of the business previously referred to as the Content business. DT Media (the “A&P Seller”), a wholly owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “A&P Agreement”), dated as of April 28, 2018, with Creative Clicks B.V. (the “A&P Purchaser”) to sell business relationships with various advertisers and publishers (the “A&P Assets”) related to the Company’s Advertising and Publishing business. As consideration for this asset sale, we are entitled to receive a percentage of the gross profit derived from these customer agreements for a period of three years as outlined in the Company’s Form 8-K filed May 1, 2018 with the Securities and Exchange Commission. The transaction is subject to closing conditions and is expected to be completed in June 2018. With the sale of these assets, the Company has determined that is will exit the segment of the business previously referred to as the A&P business. These dispositions will allow the Company to benefit from a streamlined business model, simplified operating structure, and enhanced management focus. Additionally, the Company expects to be able to generate additional cash via the announced transactions that can be re-invested into key O&O growth initiatives. The following table summarizes the financial results of our discontinued operations for all periods presented herein: Condensed Statements of Operations and Comprehensive Loss For Discontinued Operations (in thousands, except per share amounts)
|  | Year ended March 31,
|  | 2018 |  | 2017 |  | 2016
Net revenues |  | 48,877 |  |  | 51,346 |  |  | 64,290 |
Total cost of revenues |  | 42,950 |  |  | 49,241 |  |  | 55,931 |
Gross profit |  | 5,927 |  |  | 2,105 |  |  | 8,359 |
Product development |  | 2,194 |  |  | 2,752 |  |  | 6,100 |
Sales and marketing |  | 1,444 |  |  | 2,357 |  |  | 3,158 |
General and administrative |  | 1,835 |  |  | 2,045 |  |  | 2,502 |
Income / (loss) from operations |  | 454 |  |  | (5,049 | ) |  | (3,401 | )
Loss on impairment of goodwill |  | (34,045 | ) |  | — |  |  | — |
Interest and other income (expense), net |  | 431 |  |  | (77 | ) |  | (139 | )
Loss from discontinued operations before income taxes |  | (33,160 | ) |  | (5,126 | ) |  | (3,540 | )
Income tax provision |  | — |  |  | — |  |  | — |
Net loss from discontinued operations, net of taxes |  | (33,160 | ) |  | (5,126 | ) |  | (3,540 | )
Foreign currency translation adjustment |  | — |  |  | — |  |  | — |
Comprehensive loss |  | (33,160 | ) |  | (5,126 | ) |  | (3,540 | )
Basic and diluted net loss per common share |  | $ | (0.47 | ) |  | $ | (0.07 | ) |  | $ | (0.06 | )
Weighted-average common shares outstanding, basic and diluted |  | 70,263 |  |  | 66,511 |  |  | 61,763 |
Notes on the impairment of goodwill for discontinued operations We perform an annual impairment assessment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value. Qualitative factors considered in this assessment include industry and market considerations, overall financial performance, and other relevant events and factors affecting the reporting unit. In connection with the planned sale of the Content reporting unit and the A&P business within the Advertising reporting segment, we performed a full analysis of the carrying value of the associated goodwill. Since the impairment assessment concluded, based on the future cash flows of the businesses, that it is more likely than not that the fair value is less than its carrying value, we performed the first step of the goodwill impairment test, which compares the fair value of the reporting unit to its carrying value. The carrying value of the net assets assigned to the afore mentioned reporting units exceeded the fair value of the reporting units, therefore the associated goodwill was impaired. The impairment recorded above represents the results of this assessment. Based on the results of the annual impairment tests performed during the fourth quarter of fiscal 2018, the Company recorded an impairment of approximately $34,045 at March 31, 2018. Details on assets and liabilities classified as held for disposal in the accompanying consolidated balance sheets are presented in the following table:
|  | As of March 31,
|  | 2018 |  | 2017
Assets held for disposal |  |  |  |
Accounts receivable, net of allowances of $578 and $369, respectively |  | 8,013 |  |  | 5,891 |
Property and equipment, net |  | 377 |  |  | — |
Goodwill |  | 309 |  |  | — |
Prepaid expenses and other current assets |  | 54 |  |  | 62 |
Current assets held for disposal |  | 8,753 |  |  | 5,953 |
Property and equipment, net |  | — |  |  | 371 |
Intangible assets, net |  | — |  |  | 1,918 |
Goodwill |  | — |  |  | 34,353 |
Long-lived assets held for disposal |  | — |  |  | 36,642 |
Total assets held for disposal |  | 8,753 |  |  | 42,595 |
Liabilities held for disposal |  |  |  |
Accounts payable |  | 8,789 |  |  | 8,081 |
Accrued license fees and revenue share |  | 3,059 |  |  | 5,518 |
Accrued compensation |  | 529 |  |  | 553 |
Other current liabilities |  | 349 |  |  | 263 |
Current liabilities held for disposal |  | 12,726 |  |  | 14,415 |
Other non-current liabilities |  | — |  |  | 85 |
Long-term liabilities held for disposal |  | — |  |  | 85 |
Total liabilities held for disposal |  | 12,726 |  |  | 14,500 |
Assets and liabilities held for disposal as of March 31, 2018 are classified as current since we expect the dispositions to be completed within one year. In the prior year, the assets and liabilities held for disposal are classified separately as current or non-current because the non-current assets and liabilities do not meet the criteria for current classification as of March 31, 2017. The following table provides reconciling cash flow information for our discontinued operations:
|  | Year ended March 31,
|  | 2018 |  | 2017 |  | 2016
Cash flows from operating activities |  |  |  |  |  |
Net loss |  | (33,160 | ) |  | (5,126 | ) |  | (3,540 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |
Depreciation and Amortization |  | 1,037 |  |  | 5,564 |  |  | 3,101 |
Change in allowance for doubtful accounts |  | 194 |  |  | 85 |  |  | 261 |
Stock-based compensation |  | 189 |  |  | 386 |  |  | — |
Impairment of intangible assets |  | 1,065 |  |  | — |  |  | — |
Impairment of goodwill |  | 34,045 |  |  | — |  |  | — |
(Increase) / decrease in assets: |  |  |  |  |  |
Accounts receivable |  | (1,928 | ) |  | 4,715 |  |  | (14 | )
Deposits |  | — |  |  | 69 |  |  | (69 | )
Prepaid expenses and other current assets |  | 8 |  |  | (8 | ) |  | 78 |
Increase / (decrease) in liabilities: |  |  |  |  |  |
Accounts payable |  | 708 |  |  | 134 |  |  | 3,928 |
Accrued license fees and revenue share |  | (2,459 | ) |  | (1,089 | ) |  | 76 |
Accrued compensation |  | (24 | ) |  | (665 | ) |  | 269 |
Other current liabilities |  | 25 |  |  | 444 |  |  | 412 |
Other non-current liabilities |  | (24 | ) |  | 85 |  |  | — |
Cash provided by / (used in) operating activities |  | (324 | ) |  | 4,594 |  |  | 4,502 |
Cash flows from investing activities |  |  |  |  |  |
Capital expenditures |  | (142 | ) |  | (177 | ) |  | — |
Cash used in investing activities |  | (142 | ) |  | (177 | ) |  | — |
Cash provided by / (used in) discontinued operations |  | (466 | ) |  | 4,417 |  |  | 4,502 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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