Fair Value Measurements (Tables)

9 Months Ended

Dec. 31, 2012

Financial assets and liabilities measured at fair value recurring basis

The following table summarizes the Company's financial assets and liabilities measured at fair value, by level within the fair value hierarchy as of December 31, 2012 and March 31, 2012:

	December 31, 2012								March 31, 2012
			Fair Value Measurements								Fair Value Measurements
			Using Inputs Considered as								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	$	383,000	$	383,000		-		-	$	342,000	$	342,000		-		-
Prepaid expenses and other current assets
Forward foreign currency exchange contracts		239,000		-	$	239,000		-		-		-		-		-

Liabilities
Other current liabilities
Deferred compensation		383,000		383,000		-		-		342,000		342,000		-		-
Forward foreign currency exchange contracts		-		-		-		-		121,000		-	$	121,000		-
Other liabilities
Warrant liability		2,450,000		-		-	$	2,450,000		-		-		-		-

Assumptions used to determine fair value of warrant liability

The assumptions used to determine the fair value of the Cerberus Warrant and the Supplier Warrant recorded as warrant liability were:

	December 31, 2012
	Cerberus Warrant			Supplier Warrant

Risk free interest rate		0.63	%		0.68	%
Expected life in years		4.40			4.75
Expected volatility		54.85	%		55.20	%
Dividend yield		-			-
Probability of future financing		0	%		0	%

Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (level

A summary of the change to the Company's warrant liability, as measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is presented below:

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2012		2011		2012		2011

Beginning balance	$	1,568,000	$	-	$	-	$	-
Newly issued		-		-		1,625,000		-
Total (gain) loss included in net loss		882,000		-		825,000		-
Warrants exercised		-		-		-		-
Net transfers in (out) of Level 3		-		-		-		-
Ending balance	$	2,450,000	$	-	$	2,450,000	$	-

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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