Quantum Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Mar. 31, 2026

Schedule of carrying value and total estimated fair value

The following table represents the carrying value and total estimated fair value of the Company's Term Loan which was determined utilizing Level 2 inputs to determine fair value.


	March 31,
	2026				2025
	Carrying Value		Fair Value		Carrying Value		Fair Value

Term Loan	$	55,906	$	51,339	$	102,507	$	91,576

Schedule of ranges of assumptions and estimates

The following table summarizes the key assumptions used in estimating the fair value of the Forbearance Warrant at issuance and at March 31, 2026:


	March 31, 2026	September 23, 2025
Discount period (years)	6.48 years	7.0 years
Risk-free interest rate	3.65% - 4.02%	3.52% - 3.83%
Stock price volatility	100.00%	98.00%
Stock price at valuation date	$4.75	$10.69
Probability1	15% - 15% - 70%	35% - 15% - 50%
Fair value (in thousands)	$14,105	$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% and were revised at March 31, 2026 to a 15% of a liquidation event occurring; a 15% of a fundamental transaction occurring; and none of the previous events were estimated at 70%.

The significant assumptions used by the Company to estimate the fair value of the Convertible Note as of December 18, 2025 and March 31, 2026 are summarized below:


	March 31, 2026	December 18, 2025
Term (years)	2.7 years	3.0 years
Volatility	85.0%	120.0%
Dividend yield	0.00%	0.00%
Risk-free interest rate	3.77%	3.47%
Probability for maturity	85%	65%
Probability for liquidation event 1	15%	35%

1 See probability discussed under Warrants. Scenario probability was consistently applied.

Schedule of changes in level 2 liabilities

The table below sets forth a summary of changes in the fair value of the Company’s Level 2 Lender Warrant liabilities for the years ended March 31, 2024 and March 31, 2025. The Company did not issue any Lender Warrants during the year ended March 31, 2026 and had no outstanding Lender Warrants as of March 31, 2026.







Balance at March 31, 2024	$	4,046
Issuance of warrants	3,157
Exercise of warrants	(52,985)
Repricing adjustment	512
Change in fair value of warrant liabilities	45,270
Balance at March 31, 2025	$	—

The table below sets forth a summary of changes in the fair value of the Company’s Level 2 Forbearance Warrant liabilities for the years ended March 31, 2026 and March 31, 2025:


Balance at March 31, 2025	$	—
Issuance of warrants	25,420
Change in fair value of warrant liabilities	(11,315)
Balance at March 31, 2026	$	14,105

The table below sets forth a summary of changes in the fair value of the Company’s Forbearance warrant liabilities for the period ended March 31, 2026:


Balance at March 31, 2025	$	—
Issuance of warrants	25,420
Change in fair value of warrant liabilities	(11,315)
Balance at March 31, 2026	$	14,105

Schedule of fair value liabilities measured on recurring basis

The table below sets forth a summary of changes in the fair value of the Convertible Note for the period ended March 31, 2026:


Balance at March 31, 2025	$	—
Issuance of Convertible Note	77,471
Change in fair value of Convertible Note recognized in Net Loss	4,119
Change in fair value of Convertible Note recognized in Other Comprehensive Loss	8,444
Balance at March 31, 2026	$	90,034