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Fair Value Measurements
 9 Months Ended
Dec. 31, 2024
Fair Value Measurements [Abstract]  
Fair Value Measurements
15. Fair Value Measurements
 
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
 

 
December 31, 2024
 
March 31, 2024

    
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
 
$
1,909,000
  
$
1,909,000
  
$
-
  
$
-
  
$
1,837,000
  
$
1,837,000
  
$
-
  
$
-
 
Prepaid expenses and other current assets
                                
Forward foreign currency exchange contracts
  
-
   
-
   
-
   
-
   
2,516,000
   
-
   
2,516,000
   
-
 
 
                                
Liabilities
                                
Other current liabilities
                                
Deferred compensation
  
1,909,000
   
1,909,000
   
-
   
-
   
1,837,000
   
1,837,000
   
-
   
-
 
Forward foreign currency exchange contracts
  
4,888,000
   
-
   
4,888,000
   
-
   
-
   
-
   
-
   
-
 
Convertible notes, related party
                                
Compound Net Derivative Liability
  
4,950,000
   
-
   
-
   
4,950,000
   
7,410,000
   
-
   
-
   
7,410,000
 
 
Short-term Investments and Deferred Compensation
 
The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis.
 
Forward Foreign Currency Exchange Contracts
 
The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers (See Note 14).
 
Compound Net Derivative Liability
 
The Company estimates the fair value of the Compound Net Derivative Liability (see Note 7) using Level 3 inputs and the Monte Carlo simulation model at the balance sheet date. The Monte Carlo simulation model requires the input of subjective assumptions including the expected volatility of the underlying stock. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value. This amount is recorded within convertible notes, related party in the condensed consolidated balance sheets at December 31, 2024 and March 31, 2024. Any changes in the fair value of the Compound Net Derivative Liability are recorded in change in fair value of compound net derivative liability in the condensed consolidated statements of operations and condensed consolidated statements of cash flows.
 
The following assumptions were used to determine the fair value of the Compound Net Derivative Liability:
 
  
December 31, 2024
 
March 31, 2024
Risk free interest rate
  
4.35
%
  
4.36
%
Cost of equity
  
23.40
%
  
23.20
%
Weighted average cost of capital
  
14.40
%
  
14.90
%
Expected volatility of the Company's common stock
  
40.00
%
  
50.00
%
EBITDA volatility
  
40.00
%
  
40.00
%
 
 
The following summarizes the activity for Level 3 fair value measurements:
 

 
Three Months Ended
 
Nine Months Ended

 
December 31,
 
December 31,

 
2024
   
2023
  
2024
  
2023
 
Beginning balance
 
$
5,210,000
   
$
8,960,000
  
$
7,410,000
  
$
8,430,000
 
Changes in fair value of Compound Net Derivative Liability included in earnings
  
(260,000
)
   
1,160,000
   
(2,460,000
)
  
1,690,000
 
Ending balance
 
$
4,950,000
   
$
10,120,000
  
$
4,950,000
  
$
10,120,000
 
 
During the three and nine months ended December 31, 2024, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.
 
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics. At December 31, 2024 and March 31, 2024, the net carrying amount of the Convertible Notes was $32,377,000 and $30,776,000, respectively (see Note 7). The estimated fair value of the Company’s Convertible Notes was $36,168,000 and $38,276,000 using Level 3 inputs at December 31, 2024 and March 31, 2024, respectively.