v3.25.1
Fair Value Measurements
 12 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Recurring Fair Value Measurements
The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis as of March 31, 2025 and 2024:
March 31, 2025March 31, 2024
Fair ValueLevel 1Level 2Level 3Fair ValueLevel 1Level 2Level 3
(in thousands)
Financial Assets:
Money market funds$— $— $— $— $211,000 $211,000 $— $— 
Total financial assets$— $— $— $— $211,000 $211,000 $— $— 
The fair value of cash, restricted cash, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date as of March 31, 2025 and 2024.
As of March 31, 2024, cash equivalents consisted of money market funds and were classified within Level 1 of the fair value hierarchy because they were valued using quoted market prices in active markets.
The Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value during the fiscal years ended March 31, 2025 and 2024. As of March 31, 2025, the Company liquidated its money market funds to comply with restrictions under the Chapter 11 Cases. As a result, no recurring fair value measurements for continuing operations were required during the year ended March 31, 2025
Nonrecurring Fair Value Measurements
Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date. Certain of the Company’s assets, including intangible assets, are measured at fair value on a nonrecurring basis and are classified in Level 3 of the fair value hierarchy.
As a result of a sustained decline in market capitalization based on the Company’s publicly quoted share price, lower than expected financial performance and macroeconomic conditions that existed during the three months ended December 31, 2023, the Company performed an impairment assessment of goodwill acquired as part of the Lemonaid Health acquisition. The Company utilized the income approach (discounted cash flow method) corroborated by the market approach (guideline public company method), which are Level 3 non-recurring fair value measurements. The Company recorded a $198.8 million impairment charge to partially write down the value of its goodwill to its estimated fair value during the three and nine months ended December 31, 2023.
Subsequent to the annual impairment testing, in connection with the preparation of the financial statements for the fiscal year ended March 31, 2024, the Company identified a further sustained decline in market capitalization, based on our publicly quoted share price, requiring an interim impairment test of goodwill as of March 31, 2024. The Company performed an interim step one quantitative test for its former Consumer and Research Services segment and determined that the estimated fair value of the reporting unit was less than its carrying value. The Company utilized the market approach to perform its goodwill impairment test as of March 31, 2024. Based on the result of interim goodwill impairment test as of March 31, 2024, the Company recorded an additional non-cash, pre-tax goodwill impairment charge of
$152.9 million to write off the remaining balance of the former Consumer and Research Services reporting segment’s goodwill, resulting in a total goodwill impairment charge of $351.7 million for the fiscal year ended March 31, 2024. As of March 31, 2024, the Company’s goodwill was fully impaired and no balance remained.
For the fiscal year ended March 31, 2024, the goodwill impairment charges were included in the consolidated statements of operations and comprehensive loss. There were no impairment charges to goodwill for the fiscal years ended March 31, 2025 and 2023.
During the year ended March 31, 2023, the Company recorded a $10.0 million impairment charge to write down the value of an acquired intangible asset to its estimated fair value within sales and marketing expenses in its consolidated statements of operations and comprehensive loss. See Note 10, “Balance Sheet Components — Intangible Assets, Net,” for additional information. No nonrecurring fair value measurements for continuing operations were required during the year ended March 31, 2025.