Fair Value Measurements (Tables)

9 Months Ended

Dec. 31, 2014

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 December 31, 2014 and March 31, 2014:

	December 31, 2014								March 31, 2014
			Fair Value Measurements Using Inputs Considered as								Fair Value Measurements 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	$	639,000	$	639,000		-		-	$	521,000	$	521,000		-		-

Liabilities
Other current liabilities
Deferred compensation		639,000		639,000		-		-		521,000		521,000		-		-
Forward foreign currency exchange contracts		1,225,000		-	$	1,225,000		-		159,000		-	$	159,000		-
Other liabilities
Warrant liability		12,246,000		-		-	$	12,246,000		10,047,000		-		-	$	10,047,000

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:

	December 31, 2014
Risk free interest rate		0.99	%
Expected life in years		2.75
Expected volatility		48.20	%
Dividend yield		-
Probability of future financing		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 December 31,					Nine Months Ended December 31,
	2014		2013			2014		2013
Beginning balance	$	10,322,000	$	5,975,000		$	10,047,000	$	2,014,000
Newly issued		-		-			-		-
Total (gain) loss included in net loss		1,924,000		2,920,000			2,199,000		6,881,000
Exercises/settlements		-		(2,410,000	)		-		(2,410,000	)
Net transfers in (out) of Level 3		-		-			-		-
Ending balance	$	12,246,000	$	6,485,000		$	12,246,000	$	6,485,000

- 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.

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