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Note 18 - Fair Value Measurements
 12 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 18 — 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, 2024

 
  

Fair

  

Hierarchy Level

 
  

Value

  

Level 1

  

Level 2

  

Level 3

 

Assets:

                

Prepaid expenses - common stock issued subject to market adjustment at settlement

 $-  $-  $-  $- 

Total

 $-  $-  $-  $- 
                 

Liabilities:

                

Bifurcated embedded derivative on Series A Preferred Stock

 $607  $-  $-  $607 
  $607  $-  $-  $607 

 

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, 2023

 $3,698 

Change in fair value of bifurcated embedded derivatives, reported in earnings

  4,460 

Conversion of embedded derivatives to equity

  (1,481)

Conversion of warrant liability to non-controlling interest

  (5,896)

Change in fair value of contingent consideration liabilities, reported in earnings

  (174)

Balance as of March 31, 2024

 $607 

Change in fair value of bifurcated embedded derivatives, reported in earnings

  (607)

Balance as of March 31, 2025

 $- 

 

The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of March 31, 2025 and March 31, 2024. 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 and accrued expenses approximated their fair values as of March 31, 2025 and March 31, 2024.

 

The Company’s notes payable and senior secured line of credit are not publicly traded and fair value is estimated to equal carrying value.