Fair Value Measurements (Tables)

12 Months Ended

Mar. 31, 2014

Financial assets and liabilities measured at fair value recurring basis

The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2014 and 2013, according to the valuation techniques the Company used to determine their fair values.

	March 31, 2014											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	$	521,000		$	521,000			-			-		$	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		521,000			521,000			-			-			411,000			411,000			-			-
Forward foreign currency exchange contracts		159,000			-		$	159,000			-			-			-			-			-
Other liabilities
Warrant liability		10,047,000			-			-		$	10,047,000			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 Supplier Warrant recorded as warrant liability were:

	March 31, 2014

Risk free interest rate		1.11	%
Expected life in years		3.50
Expected volatility		45.90	%
Dividend yield		-
Probability of future financing		0	%

Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (level 3)

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:

	Years Ended March 31,
	2014			2013

Beginning balance	$	2,014,000		$	-
Newly issued		-			1,625,000
Total (gain) loss included in net loss		10,443,000			389,000
Exercises/settlements (1)		(2,410,000	)		-
Net transfers in (out) of Level 3		-			-
Ending balance	$	10,047,000		$	2,014,000

(1)	Represents the fair value of the Cerberus Warrant as of the settlement date (see Note 10).

- 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.

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