Quarterly report [Sections 13 or 15(d)]

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

v3.25.4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
9 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Carrying Value and Total Estimated Fair Value
The carrying value and estimated fair value of the Company’s debt were as follows (in thousands):

December 31, 2025 March 31, 2025
Carrying Value Fair Value Carrying Value Fair Value
Term Loans
$ 54,636  $ 52,096  $ 102,507  $ 91,576 
PNC Credit Facility $ —  $ —  $ 26,600  $ 24,755 
Convertible Note
$ 75,873  $ 75,873  $ —  $ — 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following table summarizes the key assumptions used in estimating the fair value of the Forbearance Warrant at issuance and at December 31, 2025:
December 31, 2025 September 23, 2025
Discount period (years) 6.73 years 7.0 years
Risk-free interest rate
3.46% - 3.87%
3.52% - 3.83%
Stock price volatility 100.00% 98.00%
Stock price at valuation date $6.45 $10.69
Probability1
35% - 15% - 50%
35% - 15% - 50%
Fair value (in thousands) $16,335 $25,420

(1) Scenario probability as of issuance was based on timing expectations of management that a liquidation event occurring was estimated at 35%; a fundamental transaction occurring was estimated at 15%; and none of the previous events were estimated at 50%.
The significant assumptions used by the Company to estimate the fair value of the Convertible Note as of December 18, 2025 and December 31, 2025 are summarized below:
December 31, 2025 December 18, 2025
Term (years) 2.97 years 3.0 years
Volatility 80.0% 120.0%
Dividend yield 0.00% 0.00%
Risk-free interest rate 3.52% 3.47%
Probability for maturity 65% 65%
Probability for liquidation event 35% 35%
Schedule of Changes in Level 2 Liabilities
The table below sets forth a summary of changes in the fair value of the Company’s warrant liabilities for the period ended December 31, 2025:

Issuance of warrants $ 25,420 
Change in fair value of warrant liabilities (1,525)
Balance at September 30, 2025 23,895 
Change in fair value of warrant liabilities (7,560)
Balance at December 31, 2025 $ 16,335 
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The table below sets forth a summary of changes in the fair value of the Convertible Note for the period ended December 31, 2025:

Issuance of Convertible Note
$ 77,472 
Change in fair value of Convertible Note
(1,599)
Balance at December 31, 2025 $ 75,873