Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS

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FAIR VALUE OF FINANCIAL INSTRUMENTS
9 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
NOTE 7: FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company’s assets, measured and recorded at fair value on a recurring basis, may consist of money market funds which are included in cash and cash equivalents in the Condensed Consolidated Balance Sheets and are valued using quoted market prices (level 1 fair value measurements) at the respective balance sheet dates.
No impairments charges were recognized for
non-financial
assets in the nine months ended December 31, 2018 and 2017. We have no
non-financial
liabilities measured and recorded at fair value on a
non-recurring
basis.
Warrants and Warrant Liability
The Company uses the Black-Scholes-Merton option valuation model for estimating fair value of common stock warrants. The expected life of warrants granted represent the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, exercise patterns, and post-vesting forfeitures. The Company estimates volatility based on the historical volatility of the common stock over the most recent period corresponding with the estimated expected life of the award. The Company bases the risk-free interest rate used in the Black-Scholes-Merton stock option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent term equal to the expected life of the award. The Company has not paid any cash dividends on the common stock and does not anticipate paying any cash dividends in the foreseeable future.
During fiscal year 2018, the Company began issuing common stock warrants in connection with the TCW Term Loan agreement. The warrants were initially accounted for as a liability and recorded at estimated fair value on a recurring basis due to exercise price reset provisions contained with the warrant agreements. As such, the Company estimated the fair value of the warrants at the end of each reporting period using a Black-Scholes valuation model. At the end of each reporting period, the Company recorded the changes in the estimated fair value during the period in other expense (income) in the condensed consolidated statements of operations and comprehensive loss.
 
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 nine months ended December 31, 2018 and 2017 (in thousands):
 
         
   
Warrant liability
 
Balance, March 31, 2018
  $ 272  
Issuances
    5,682  
Settlements
    (176
Changes in fair value
    (942 )
Balance, December 31, 2018
  $ 4,836  
 
 
 
 
 
Balance, March 31, 2017
  $ —    
Issuances
    1,772  
Settlements
    (1,063
Changes in fair value
    33  
Balance, December 31, 2017
  $ 742  
Long-term Debt
The Company’s financial liabilities were comprised primarily of long-term debt as of December 31, 2018 and March 31, 2018. The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt.
The carrying value and fair value of the financial liabilities were primarily comprised of the following as of December 31, 2018 and March 31, 2018 (in thousands):
 
                                 
   
As of
 
   
December 31, 2018
   
March 31, 2018
 
   
Carrying
Value
   
Fair Value
   
Carrying
Value
   
Fair Value
 
Long term debt:
(1)
                               
TCW Term Loan
  $ —       $ —       $ 90,424     $ 90,424  
PNC Credit Facility
                33,107       27,323  
Senior Secured Term Loan
    150,000       150,000              
Total long-term debt
  $ 150,000     $ 150,000     $ 123,531     $ 117,747  
 
(1)
 
Fair value based on outstanding borrowings and market interest rates (level 2)