Quantum Corporation Annual report pursuant to Section 13 and 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Mar. 31, 2019

The following table summarizes the ending balances of warrant liabilities measured and recorded at fair value on a recurring basis (in thousands):


	As of March 31,
	2019		2018
Warrant liability	$	—	$	272

Schedule of Black-Scholes option valuation models assumptions

Assumptions used in the Black-Scholes model for stock option grants in fiscal 2018 are as follows:


Weighted-Average:
Expected term (years)		7
Contractual term (years)		7
Risk-free interest rate		2.48	%
Stock price volatility		75.52	%
Grant date fair value	$	4.29

Schedule of changes in the fair value of Level 3 valuations

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuations for the warrant liability for the years ended March 31, 2019 and 2018 (in thousands):


	Warrant liabilities
Balance, March 31, 2017 as restated	$	—
Issuances		2,370
Settlements		(1,888	)
Changes in fair value		(210	)

Balance, March 31, 2018		272
Issuances		5,683
Settlements		(615	)
Changes in fair value		297
Reclassifications to stockholders’ deficit		(5,637	)

Balance March 31, 2019	$	—

Schedule of carrying value and fair value of liabilities

The carrying value and fair value of the Company’s financial liabilities were primarily comprised of the following as of March 31, 2019 and 2018 (in thousands):


	As of March 31,
	2019				2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt: (1)
TCW Term Loan					$	90,424	$	90,424
Senior Secured Term Loan	$	164,588	$	143,398
PNC Revolving Credit Agreements		—				33,107	$	27,323

Total long-term debt	$	164,588	$	143,398	$	123,531	$	117,747

(1)	Fair value based on outstanding borrowings and market interest rates (level 2)

Warrant [Member]

Schedule of Black-Scholes option valuation models assumptions

The following table the ranges of assumptions and estimates utilized within the Black-Scholes option valuation models for each annual period (see Note 7:

Stock Incentive Plans and Stock-based Compensation

for specific details related to each issuance):


	Years ended March 31,
	2019		2018
Inputs
Company’s stock price		$1.62 - $2.40		$3.64 - $5.63
Exercise prices		$0.01 - $2.40		$0.01
Expected term (years)		4.5 to 5.0		4.8 to 5.0
Volatility		64.1% - 71.8%		59.8% - 69.1%
Risk free rate		2.5% - 3.0%		2.1% - 2.7%
Dividend rate		0.0%		0.0%