FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Sep. 30, 2013

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

We account for the fair values of our assets and liabilities in accordance with Codification Topic Fair Value Measurement and Disclosure. Accordingly, we established a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. The fair value of our contingent consideration liability is calculated using the discounted cash flow approach based on significant unobservable inputs, which is considered a level 3 measurement.

The following table summarizes the fair value hierarchy of our contingent consideration liability as of March 31, 2013 (in thousands):

			Fair Value Measurement Using
	March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Liabilities:
Contingent consideration	$	918	$	-	$	-	$	918	$	-

For the six months ended September 30, 2013, the adjustment to the fair value of the contingent consideration was an increase of $355 thousand, which was presented within general and administrative expenses in our unaudited consolidated statement of operations. During the six months ended September 30, 2013, we paid $1,272 thousand in consideration to satisfy our contingent liability. As of September 30, 2013, there were no outstanding amounts due under the contingent consideration arrangement.

For the six months ended September 30, 2012, the adjustment to the fair value of the contingent consideration was a decrease of $170 thousand, which was presented as a reduction to general and administrative expenses in our unaudited consolidated statement of operations.