v3.26.1
Fair Value Measurements
 3 Months Ended
Jun. 30, 2026
Fair Value Measurements [Abstract]  
Fair Value Measurements
15. Fair Value Measurements
 
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
                                 
 
 
 June 30, 2026  
 
 March 31, 2026  
 
 

    Fair Value Measurements
Using Inputs Considered as 		 

Fair Value Measurements
Using Inputs Considered as 		 
   
Fair Value
   
Level 1
   
Level 2
   
Level 3
   
Fair Value
   
Level 1
   
Level 2
   
Level 3
 
Assets
                                        
Short-term investments
                                        
Mutual funds
  $2,279,000   $2,279,000   $   -    $   -    $2,028,000   $2,028,000   $   -    $   -  
Prepaid expenses and other current assets
                                        
Forward foreign currency exchange contracts
   768,000      -     768,000      -     852,000      -     852,000      -  
                                         
Liabilities
                                        
Other current liabilities
                                        
Deferred compensation
   2,279,000    2,279,000      -       -     2,028,000    2,028,000      -       -  
Convertible notes, related party
                                        
Compound Net Derivative Liability
   7,880,000      -       -     7,880,000    6,340,000      -       -     6,340,000 
Short-term Investments and Deferred Compensation
 
The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis.
 
Forward Foreign Currency Exchange Contracts
 
The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers (see Note 14).
 
Compound Net Derivative Liability
 
The Company estimates the fair value of the Compound Net Derivative Liability (see Note 7) using Level 3 inputs and the Monte Carlo simulation model at the balance sheet date. The Monte Carlo simulation model requires the input of subjective assumptions including the expected volatility of the underlying stock. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value. This amount is recorded within convertible notes, related party in the condensed consolidated balance sheets at June 30, 2026 and March 31, 2026. Any changes in the fair value of the Compound Net Derivative Liability are recorded in change in fair value of compound net derivative liability in the condensed consolidated statements of operations and condensed consolidated statements of cash flows.
 
The following assumptions were used to determine the fair value of the Compound Net Derivative Liability:
 
         
   
June 30, 2026
   
March 31, 2026
 
Risk free interest rate
  4.15%   3.81%
Cost of equity
  18.80%   19.40%
Weighted average cost of capital
  14.70%   12.80%
Expected volatility of the Company's common stock
  47.04%   70.00%
EBITDA volatility
  40.00%   40.00%
 
During the three months ended June 30, 2026, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.
 
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics. At June 30, 2026 and March 31, 2026, the net carrying amount of the Convertible Notes was $44,795,000 and $38,993,000, respectively (see Note 7). The estimated fair value of the Company’s Convertible Notes was $54,192,000 and $50,363,000 using Level 3 inputs at June 30, 2026 and March 31, 2026, respectively.