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Note 16 - Fair Value Measurements
 12 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Fair Value, Measurement Inputs, Disclosure [Text Block]
Note
16
. Fair Value Measurements
 
We follow authoritative guidance (GAAP) which requires that assets and liabilities carried at fair value be classified and disclosed in
one
of the established categories. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The
three
categories are defined as follows:
 
• Level
1:
Quoted prices in active markets for identical assets.
• Level
2:
Observable market-based inputs or unobservable inputs that are corroborated by market data.
• Level
3:
Significant inputs to the valuation model are unobservable inputs.
 
Assets and liabilities measured on a recurring basis:
 
The following table presents items required to be measured at fair value on a recurring basis by the level in which they are classified within the valuation hierarchy as follows:
 
 
 
Year Ended March 31, 2017
 
 
 
 
Level 1
 
 
 
Level 2
 
 
Level 3
 
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    $ --     $ --     $ --     $ --  
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 
Contingent Consideration
   $
--
     $
--
    $
--
    $
--
  
 
 
   
Year Ended March 31, 2016
  
 
 
 
Level 1
 
 
 
Level 2
 
 
Level 3
 
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    $ --     $ --     $ --     $ --  
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 
Contingent Consideration
   $
--
     $
--
    $
9,037
    $
9,037
  
 
 
Under the Infitrak Agreement (See Note
2
), we were required to make
two
annual payments to the former owners based on future growth in gross profit (as defined in the Infitrak Earn-Out Agreement). During the year ended
March 31, 2017
we made both payments which totaled
$12,000,000
CDN (
$9,152,000
). The contingent consideration payable was a standalone liability that was measured at fair value on a recurring basis for which there is
no
available quoted market price, principal market or market participants. As such, the inputs for this instrument were unobservable and therefore classified as Level
3
inputs. This contingent consideration liability was valued using a discounted cash flow model based on internal forecasts and our current cost of borrowing. There were
no
changes to the valuation methodology during the period.
 
The contingent consideration arising from this agreement was our only Level
3
asset or liability. The following table presents a roll forward of the contingent consideration payable for the years ended
March 31, 2017
and
2016
(in thousands):
 
 
 
March 31,
 
 
 
2017
 
 
2016
 
Opening balance
   $
9,037
     $
--
  
Amount related to Infitrak Acquisition
    
--
     
9,271
 
Measurement period adjustment(s)
    
--
      
--
  
Payments/accruals
    
(9,152
 )    
--
  
Transfers in/out of Level 3
    
--
      
--
  
Fair value adjustment – expense
    
158
      
85
  
Foreign exchange rate impact – included in other comprehensive loss
    
(43
 )    
(319
 )
Ending Balance
   $
--
     $
9,037