XML 20 R14.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Fair Value Disclosures | 9 Months Ended
--- | ---
Dec. 31, 2023
Fair Value Disclosures [Abstract] |
Fair Value Disclosures | Note 8. Fair Value Disclosures The Company’s financial instruments consist of cash and cash equivalents, finance receivables held for sale, finance receivables held for investment, and the WL Credit Facility. Finance receivables held for sale are measured at the lower of amortized cost or fair value. When the fair value of the finance receivables is less than the amortized cost basis, the Company records a valuation allowance which is a non-recurring fair value measurement. Repossessed assets are measured at the lower of carrying value or fair value less cost to sell. When the fair value less cost to sell of the repossessed assets is less than the carrying value, the Company records a valuation allowance which is a non-recurring fair value measurement. The Company estimates the fair value of repossessed assets held for sale utilizing auction recoveries statistics, resulting in a classification within Level 3 of the valuation hierarchy, as further described below. The Company estimates the fair value of finance receivables held for sale utilizing a discounted cash flow approach, which includes an evaluation of the underlying loan characteristics, as well as assumptions to determine the discount rate, credit mark, and prepayment forecasts. In determining the appropriate discount rate, prepayment and credit assumptions, the Company utilized its historical defaults and auction recoveries statistics, as well as publicly reported data for selected peers. Given the unobservable nature of these key inputs, these loans are therefore classified within Level 3 of the valuation hierarchy, as further described below. Significant increases (decreases) in the discount rate, in isolation, could result in a significantly lower (higher) fair value measurement. Fair value is defined in FASB ASC Topic 820-10-20 as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value also assumes that the reporting entity would sell the asset or transfer the liability in the principal or most advantageous market. Market participants are defined as buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: 1) an unrelated party; 2) knowledgeable (having a reasonable understanding about the asset or liability and the transaction based on all available information, including information that might be obtained through due diligence efforts that are usual or customary); 3) able to transact; and 4) willing to transact (motivated but not forced or otherwise compelled to do so). The FASB states that “valuation techniques that are appropriate in the circumstances and for which sufficient data are available shall be used to measure fair value.” The valuation techniques for measuring fair value are consistent with the three traditional approaches to value: the market approach, the income approach, and the cost or asset approach. The application of valuation techniques requires the use of common sense, informed judgment, and reasonableness based on the relevant facts and circumstances surrounding the analysis. There are relevant inputs (both observable and unobservable) that can be used in valuation based on the facts and circumstances. The FASB has defined a fair value hierarchy for these inputs which prioritizes the inputs into three broad levels: •Level 1 inputs are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities. •Level 2 inputs are defined as inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. •Level 3 inputs are defined as unobservable inputs for the asset or liability. Unobservable inputs should be used only to the extent that relevant observable inputs are not available; this allows for situations where there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs should reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The fair value of the Credit Facility as of December 31, 2023 was zero. The fair value of the Credit Facility, which was entered late in the prior year, was estimated to be equal to the book value at March 31, 2023 as the interest rate was a variable rate based on SOFR pricing options.
|  | (In thousands) |
|  | Fair Value Measurement Using |  |  |  |  |  |  |
Description |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Fair Value |  |  | Carrying Value |
Cash |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  | $ | 1,219 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,219 |  |  | $ | 1,219 |
March 31, 2023 |  | $ | 454 |  |  | $ | - |  |  | $ | - |  |  | $ | 454 |  |  | $ | 454 |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  | $ | 6,598 |  |  | $ | - |  |  | $ | - |  |  | $ | 6,598 |  |  | $ | 6,598 |
March 31, 2023 |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Finance receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  | $ | - |  |  | $ | - |  |  | $ | 50,306 |  |  | $ | 50,306 |  |  | $ | 50,306 |
March 31, 2023 |  | $ | - |  |  | $ | - |  |  | $ | 105,971 |  |  | $ | 105,971 |  |  | $ | 106,919 |
Repossessed assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  | $ | - |  |  | $ | - |  |  | $ | 395 |  |  | $ | 395 |  |  | $ | 395 |
March 31, 2023 |  | $ | - |  |  | $ | - |  |  | $ | 1,491 |  |  | $ | 1,491 |  |  | $ | 1,491 |
Credit Facility: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
March 31, 2023 |  | $ | - |  |  | $ | - |  |  | $ | 29,100 |  |  | $ | 29,100 |  |  | $ | 29,100 |
Level 3 Assets with Significant Unobservable Inputs |  | Fair Value |  |  | Valuation Technique |  | Significant Unobservable Inputs |  | Range |  | Weighted Average (1)
Non-recurring fair value |  |  |  |  |  |  |  |  |  |  |
Finance receivables held for sale |  | $ | 50,306 |  |  | Discounted Cash Flows |  | Discount Rate |  | 16.4% - 17.6% |  | 17.3%
Repossessed assets held for sale |  |  | 395 |  |  | Discounted Cash Flows |  | Discount Rate |  | 16.4% - 17.6% |  | 17.3%
(1) | Weighted averages are determined by the relative fair value of the instruments or the relative contribution to the instruments fair value.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration