XML 23 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Jun. 30, 2013
Accounting Policies [Abstract]  
Cash restricted for repaying interest on the term loans
In connection with the 2013 Term Loans issued in February 2013 and 2013 Prospect Loan Agreement issued in February 2013 (collectively, see Note 5), the Company maintains cash restricted for repaying interest on the respective loans as follows:
 
 
As of June 30, 2013
 
As of March 31, 2013
Reserve account related to the 2013 Term Loans (See Note 5)
 
$
5,753

 
$
5,751

Reserve account related to the 2013 Prospect Loan Agreement (See Note 5)
 
1,000

 
1,000

 
 
$
6,753

 
$
6,751
Estimated useful lives of Property and equipment
Depreciation expense is recorded using the straight-line method over the estimated useful lives of the respective assets as follows:
Computer equipment and software
3 - 5 years
Digital cinema projection systems
10 years
Machinery and equipment
3 - 10 years
Furniture and fixtures
3 - 6 years
Fair Value Measurements of financial assets
The following tables summarize the levels of fair value measurements of the Company’s financial assets:

 
 
As of June 30, 2013
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Restricted cash
 
$
6,753

 
$
—

 
$
—

 
$
6,753

Interest rate derivatives
 
—

 
(131
)
 
—

 
(131
)
Contingent consideration
 
—

 
—

 
(3,287
)
 
(3,287
)
 
 
$
6,753

 
$
(131
)
 
$
(3,287
)
 
$
3,335

 
 
As of March 31, 2013
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash equivalents
 
$
1,004

 
$
—

 
$
—

 
$
1,004

Restricted cash
 
6,751

 
—

 
—

 
6,751

Interest rate derivatives
 
—

 
(544
)
 
—

 
(544
)
Contingent consideration
 
—

 
—

 
(3,250
)
 
(3,250
)
 
 
$
7,755

 
$
(544
)
 
$
(3,250
)
 
$
3,961
Schedule of Changes in Contingent Consideration Liabilities
The following change in contingent consideration liabilities during the three months ended June 30, 2013 were as follows:
Balance at March 31, 2013
 
$
3,250

Change in fair value
 
37

Balance at June 30, 2013
 
$
3,287
Information related to goodwill allocated to continuing operations
Information related to the goodwill allocated to the Company's reportable segments is detailed below:
 
 
Phase I
 
Phase II
 
Services
 
Content & Entertainment
 
Corporate
 
Consolidated
As of March 31, 2013
 
$
—

 
$
—

 
$
4,197

 
$
8,542

 
$
—

 
$
12,739

As of June 30, 2013
 
$
—

 
$
—

 
$
4,197

 
$
8,542

 
$
—

 
$
12,739
Assumptions used in Black-Scholes option valuation model for estimating fair value of options
The Company estimated the fair value of stock options at the date of each grant using a Black-Scholes option valuation model with the following assumptions:
 
 
For the Three Months Ended June 30,
Assumptions for Option Grants
 
2013
 
2012
Range of risk-free interest rates
 
0.7 - 1.2%

 
0.7 - 0.9%

Dividend yield
 
—

 
—

Expected life (years)
 
5

 
5

Range of expected volatilities
 
 73.4 - 73.8%

 
75.7 - 76.2%
Employee stock-based compensation expense related to stock-based awards
Employee and director stock-based compensation expense related to the Company’s stock-based awards was as follows:
 
For the Three Months Ended June 30,
 
2013
 
2012
Direct operating
$
18

 
$
22

Selling, general and administrative
697

 
732

Research and development
22

 
37

 
$
737

 
$
791