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Fair Value Measurements

6 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 17 — Fair Value Measurements

The following table presents the fair value of the Company's financial liabilities that are measured at fair value on a recurring basis (in thousands):

		September 30, 2019
		Fair				Hierarchy Level
		Value				Level 1				Level 2				Level 3
Liabilities:
Bifurcated embedded derivative on senior secured convertible debentures		$	392			$	-			$	-			$	392

		March 31, 2019
		Fair				Hierarchy Level
		Value				Level 1				Level 2				Level 3
Liabilities:
Bifurcated embedded derivative on senior secured convertible debentures		$	586			$	-			$	-			$	586

The following table presents a reconciliation of the Company's derivative instruments (in thousands):

		Amount
Balance as of March 31, 2019		$	586
Total fair value adjustments reported in earnings			(194	)
Balance as of September 30, 2019		$	392

The Company did not elect the fair value measurement option for the following financial assets or liabilities. The fair values of certain financial instruments measured at amortized cost and the hierarchy level the Company used to estimate the fair values are shown below (in thousands):

		September 30, 2019
		Carrying				Hierarchy Level
		Value				Level 1				Level 2				Level 3
Assets:
Cash and cash equivalents		$	16,053			$	16,053			$	-			$	-
Restricted cash			235				235				-				-
Liabilities:
Note payable			322				-				-				322
Senior secured convertible debentures, net			10,516				-				-				11,196
Unsecured convertible notes payable, net			4,928				-				-				5,022

		March 31, 2019
		Carrying				Hierarchy Level
		Value				Level 1				Level 2				Level 3
Assets:
Cash and cash equivalents		$	13,704			$	13,704			$	-			$	-
Restricted cash			235				235				-				-
Liabilities:
Note payable			312				-				-				312
Senior secured convertible debentures, net			11,809				-				-				13,737
Unsecured convertible notes payable, net			4,741				-				-				8,844

The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of September 30, 2019 and March 31, 2019. The Company's estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values.

Cash equivalents and restricted cash equivalents primarily consisted of short-term interest-bearing money market funds with maturities of less than 90 days and time deposits. The estimated fair values were based on available market pricing information of similar financial instruments.

Due to their short maturity, the carrying amounts of the Company's accounts receivable, accounts payable, accrued expenses and other long-term liabilities approximated their fair values as of September 30, 2019 and March 31, 2019.

The Company's outstanding debt is carried at cost, adjusted for discounts. The Company's Debentures, embedded derivatives and unsecured convertible notes payable with fixed rates are not publicly traded and the Company has estimated fair values using binomial lattice calculations and a risk neutral model and a yield model with a Black-Scholes-Merton option pricing model, respectively. The Company has recognized $0.2 million and $0.4 million, respectively, of income in the three and six months ended September 30, 2019 related to the fair value of bifurcated derivatives through other income (expense). The Company's note payable is not publicly traded and fair value is estimated to equal carrying value.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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