Quantum Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Sep. 30, 2026

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):


	September 30, 2026				March 31, 2026
	Carrying Value		Fair Value		Carrying Value		Fair Value

Term Loan	$	—	$	—	$	55,906	$	51,339

On June 4, 2026, the Company paid the entire outstanding principal amount and terminated the Term Loan Credit Agreement, see Note 4 : Debt for further details,

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 September 30, 2026 and March 31, 2026:


	September 30, 2026	March 31, 2026
Discount period (years)	5.98 years	6.48 years
Risk-free interest rate	4.49% - 5.07%	3.65% - 4.02%
Stock price volatility	110.00%	100.00%
Stock price at valuation date	$31.72	$4.75
Probability1	10% - 15% - 75%	15% - 15% - 70%
Fair value (in thousands)	$80,000	$14,105

(1) Scenario probability at March 31, 2026 was based on timing expectations of management that a liquidation event occurring was estimated at 15%; a fundamental transaction occurring was estimated at 15%; and none of the previous events were estimated at 70%. Scenario probability at September 30, 2026 incorporated a 10% of a liquidation event occurring; a 15% of a fundamental transaction occurring; and none of the previous events were estimated at 75%.

The following table summarizes the key assumptions used in estimating the fair value of the Conversion Warrant at issuance and at September 30, 2026:


	September 30, 2026	June 1, 2026
Discount period (years)	4.67 years	5 years
Risk-free interest rate	4.49% - 5.01%	3.81% - 4.14%
Stock price volatility	110.00%	100.00%
Stock price at valuation date	$31.72	$10.49
Probability1	10% - 15% - 75%	10% - 15% - 75%
Fair value (in thousands)	$3,255	$1,280

(1) Scenario probability as of issuance and at September 30, 2026 was based on timing expectations of management that a liquidation event occurring was estimated at 10%; a fundamental transaction occurring was estimated at 15%; and none of the previous events were estimated at 75%.

Schedule of changes in level 2 liabilities

The table below sets forth a summary of changes in the fair value of the Company’s Forbearance Warrant liability for the three and six months ended September 30, 2026:


Balance at March 31, 2026	$	14,105
Change in fair value of forbearance warrant for the 3 months ended June 30, 2026	16,290
Balance at June 30, 2026	30,395
Change in fair value of forbearance warrant for the 3 months ended September 30, 2026	49,605
Balance at September 30, 2026	$	80,000

The table below sets forth a summary of changes in the fair value of the Company’s Conversion Warrant liability for the three and six months ended September 30, 2026:


Balance at March 31, 2026	$	—
Issuance of Conversion Warrant	1,280
Change in fair value of Conversion Warrant for the 3 months ended June 30, 2026	15
Balance at June 30, 2026	1,295
Change in fair value of Conversion Warrant for the 3 months ended September 30, 2026	1,960
Balance at September 30, 2026	$	3,255

Schedule of fair value liabilities measured on recurring basis

The table below sets forth a summary of changes in the fair value of the Company’s Convertible Note for the six months ended September 30, 2026:


Balance at March 31, 2026	$	90,034
Change in fair value of Convertible Note	129,715
Conversion of Convertible Note	(219,749)
Balance at September 30, 2026	$	—