Fair Value Measurements

9 Months Ended

Dec. 31, 2021

Fair Value Measurements [Abstract]

Fair Value Measurements

14. Fair Value Measurements

The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:

	December 31, 2021								March 31, 2021
			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	$	2,212,000	$	2,212,000	$	-	$	-	$	1,652,000	$	1,652,000	$	-	$	-
Prepaid expenses and other current assets
Forward foreign currency exchange contracts		-		-		-		-		1,429,000		-		1,429,000		-
Liabilities
Accrued liabilities
Short-term contingent consideration		970,000		-		-		970,000		910,000		-		-		910,000
Other current liabilities
Deferred compensation		2,212,000		2,212,000		-		-		1,652,000		1,652,000		-		-
Forward foreign currency exchange contracts		404,000		-		404,000		-		-		-		-		-

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 13).

Contingent Consideration

In December 2018, the Company completed the acquisition of certain assets and assumption of certain liabilities from Mechanical Power Conversion, LLC (“E&M”). In connection with this acquisition, the Company was contingently obligated to make additional payments to the former owners of E&M up to an aggregate of $5,200,000 over a three-year period. The third and final payment of the contingent consideration obligation of $970,000 will be made in the fourth fiscal quarter ending March 31, 2022, as settlement of this obligation. This obligation is recorded in accounts payable and accrued liabilities in the Company’s condensed consolidated balance sheets at December 31, 2021.

The following table summarizes the activity for financial assets and liabilities utilizing Level 3 fair value measurements:

	Three Months Ended December 31,					Nine Months Ended December 31,
Contingent Consideration	2021			2020		2021		2020
Beginning balance	$	980,000		$	2,588,000	$	910,000	$	2,653,000
Changes in revaluations of contingent consideration included in earnings		(10,000	)		20,000		60,000		(45,000	)
Ending balance	$	970,000		$	2,608,000	$	970,000	$	2,608,000

During the three and nine months ended December 31, 2021, the Company had no other 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, term 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.