Equity Method Investment

12 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

In connection with the transfer of its TeamConnect business and support for its pdvConnect business, the Company entered into a memorandum of understanding (“MOU”) with the principals of Goosetown on December 31, 2018. Under the MOU, the Company agreed to assign the intellectual property rights to its pdvConnect application to the LLC, a new entity formed by the principals of Goosetown, in exchange for a 19.5% ownership interest in the LLC, effective April 30, 2019. The Goosetown principals have agreed to fund the future operations of the LLC, subject to certain limitations. The LLC has assumed the Company’s software support and maintenance obligations under the Goosetown and A BEEP Agreements. The LLC has also assumed customer care services related to the Company’s pdvConnect application. The Company provided transition services to the LLC through April 1, 2019 to facilitate an orderly transition of the customer care services. On April 1, 2020, the Company transferred its pdvConnect customers to the LLC, and the LLC agreed to pay the Company a certain portion of the recurring revenues from these customers.

For the year ended March 31, 2020, the Company transferred network, computer, other equipment and intellectual property rights with a net book value of $246,000, recorded an investment in the LLC amounting to $48,000 and loss on disposal of long-lived assets and capitalized patent costs amounting to $198,000 relating to the transfer of the assets.

As of March 31, 2021, the change in the carrying value of the investment in LLC is summarized below as follows (in thousands):


	Equity Method Investment
Equity method investment carrying value at March 31, 2020	$	39
Non-cash contribution	—
Share of net loss from LLC	(39)
Equity method investment carrying value at March 31, 2021	$	—

As of and for the year ended March 31, 2022, there was no activity for equity method investments.