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Fair Value Measurements
 12 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 20 — 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):


   March 31, 2021 
   Fair   Hierarchy Level 
   Value   Level 1   Level 2   Level 3 
Liabilities:                
Contingent consideration liability from PodcastOne acquisition  $2,423   $-   $-   $2,423 
Contingent consideration liability from CPS acquisition   2,513    -    -    2,513 
Bifurcated embedded derivative on senior secured convertible notes payable   118    -    -    118 
Bifurcated embedded derivative on unsecured convertible note payable   13    -    -    13 
   $5,067   $-   $-   $5,067 

   March 31, 2020 
   Fair   Hierarchy Level 
   Value   Level 1   Level 2   Level 3 
Liabilities:                
Bifurcated embedded derivative on senior secured convertible debentures  $524   $-   $-   $524 
Bifurcated embedded derivative on unsecured convertible note payable   141    -    -    141 
   $665   $-   $-   $665 

The following table presents a reconciliation of the Company’s financial liabilities that are measured at Level 3 within the fair value hierarchy (in thousands):


   Amount 
Balance as of April 1, 2019  $586 
Additions - unsecured convertible note payable   65 
Total fair value adjustments reported in earnings   14 
Balance as of March 31, 2020   665 
Initial measurement of contingent consideration from PodcastOne acquisition on July 1, 2020   1,100 
Initial measurement of contingent consideration from CPS acquisition on December 22, 2020   1,654 
Initial measurement of embedded derivatives on senior secured convertible notes issued on September 15, 2020   671 
Total fair value adjustments reported in earnings   977 
Balance as of March 31, 2021  $5,067 

Bifurcated embedded derivative on senior secured convertible debentures, senior secured convertible notes payable and unsecured convertible notes payable 


The fair value of the bifurcated embedded derivatives on senior secured convertible debentures, senior secured convertible notes payable and unsecured convertible notes was determined using the following significant unobservable inputs:


   March 31,   March 31, 
   2021   2020 
         
Bifurcated embedded derivative on senior secured convertible debentures Market yield   -    27.4%
Bifurcated embedded derivative on senior secured convertible notes payable Market yield   17.0%   - 
Bifurcated embedded derivative on unsecured convertible note payable Market yield   26.5%   43.9%

Significant increases or decreases in the inputs noted above in isolation would result in a significantly lower or higher fair value measurement.


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


   March 31, 2021 
   Carrying   Hierarchy Level 
   Value   Level 1   Level 2   Level 3 
Liabilities:                
Senior secured convertible notes payable, net   13,047         -    -    20,228 
Unsecured convertible notes payable related party, net   5,501    -    -    9,216 
Unsecured convertible note payable   1,976    -    -    2,167 

   March 31, 2020 
   Carrying   Hierarchy Level 
   Value   Level 1   Level 2   Level 3 
Liabilities:                
Senior secured convertible debentures, net   8,701          -    -    9,254 
Unsecured convertible notes payable, net   5,114    -    -    4,451 
Unsecured convertible note payable   1,539    -    -    1,338 

The fair values of financial assets and liabilities not included in these tables are estimated to be equal to their carrying values as of March 31, 2021 and 2020. 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.


The fair value of the financial assets and liabilities, where the Company did not elect the fair value measurement option and carried at amortized cost, were determined using the following significant unobservable inputs:


   Year Ended March 31, 
   2021   2020 
Senior secured convertible debentures, net (binomial lattice model):        
Market yield       -    27.4%
           
Senior secured convertible notes payable, net (binomial lattice model):          
Market yield   17.0%   - 
           
Unsecured convertible notes payable related party, net (yield model with a Black-Scholes-Merton option pricing model):          
Market yield   23.0%   41.6%
           
Unsecured convertible note payable (yield model with a Black-Scholes-Merton option pricing model):          
Market yield   26.5%   43.9%

Significant increases or decreases in the inputs noted above in isolation would result in a significantly lower or higher fair value measurement.


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 and accrued expenses approximated their fair values at March 31, 2021 and 2020.


The Company’s note payable is not publicly traded and fair value is estimated to equal carrying value. The Company’s debentures and unsecured convertible notes payable with fixed rates are not publicly traded and the Company has estimated fair values using a variety of valuation models and market rate assumptions detailed above. The senior convertible notes payable and unsecured convertible notes are valued using a binomial lattice model and a yield model with a Black-Scholes-Merton option pricing model, respectively. The Company has estimated the fair value of contingent consideration related to the acquisitions of PodcastOne and CPS based on the number of shares issuable based on the achievement of certain provisions within the purchase agreement, as detailed in Note 4 – Business Combinations, using the quoted price of the Company’s common stock. The inputs used to fair value the contingent consideration on the date of acquisition were also used as of the balance sheet date.