Fair Value Measurements (Tables)

6 Months Ended

Sep. 30, 2013

Financial assets and liabilities measured at fair value recurring basis

The following table summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy as of September 30, 2013 and March 31, 2013:

	September 30, 2013								March 31, 2013
			Fair Value Measurements								Fair Value Measurements
			Using Inputs Considered as								Using Inputs Considered as
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Assets
Short-term investments
Mutual funds	$	452,000	$	452,000		-		-	$	411,000	$	411,000		-		-
Prepaid expenses and other current assets
Forward foreign currency exchange contracts		-		-		-		-		683,000		-	$	683,000		-

Liabilities
Other current liabilities
Deferred compensation		452,000		452,000		-		-		411,000		411,000		-		-
Forward foreign currency exchange contracts		150,000		-	$	150,000		-		-		-		-		-
Other liabilities
Warrant liability		5,975,000		-		-	$	5,975,000		2,014,000		-		-	$	2,014,000

Assumptions used to determine fair value of warrant liability

The assumptions used to determine the fair value of the Cerberus Warrant and the Supplier Warrant recorded as warrant liability were:

	September 30, 2013
	Cerberus Warrant			Supplier Warrant

Risk free interest rate		0.88	%		1.01	%
Expected life in years		3.65			4.00
Expected volatility		44.19	%		43.10	%
Dividend yield		-			-
Probability of future financing		0	%		0	%

Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (level

A summary of the change to the Company’s warrant liability, as measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is presented below:

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2013		2012			2013		2012

Beginning balance	$	3,584,000	$	617,000		$	2,014,000	$	-
Newly issued		-		1,018,000			-		1,625,000
Total loss (gain) included in net loss		2,391,000		(67,000	)		3,961,000		(57,000	)
Warrants exercised		-		-			-		-
Net transfers in (out) of Level 3		-		-			-		-
Ending balance	$	5,975,000	$	1,568,000		$	5,975,000	$	1,568,000

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details