Variable Interest Entity

6 Months Ended

Sep. 30, 2021

11. Variable Interest Entity

In March 2019, the Company entered into a new senior secured credit facility collateralized by consumer finance receivables by transferring the receivables into a bankruptcy-remote variable interest entity (VIE). Under the terms of the transaction, all cash collections and other cash proceeds of the customer receivables went first to the servicer and the holders of the asset-backed notes, and then to the residual equity holder. The Company retained the servicing of the portfolio and received a monthly fee of 2.5% (annualized) based on the outstanding balance of the financed receivables, and the Company held all of the residual equity as of September 30, 2021. In addition, the Company, rather than the VIE, retained certain credit insurance income together with certain recoveries related to credit insurance and on charge-offs of the financed receivables, which would continue to be reflected as a reduction of net charge-offs on a consolidated basis for as long as the Company consolidated the VIE.

The Company consolidated the VIE when the Company determined that it is the primary beneficiary, the Company has the power to direct the activities that most significantly impact the performance of the VIE and it has the obligation to absorb losses and the right to receive significant residual returns.

The assets of the VIE served as collateral for the obligations of the VIE. The lender had no recourse to assets outside of the VIE.

The following table presents the assets and liabilities held by the VIE (for legal purposes, the assets and the liabilities of the VIE remained distinct from the Company):


	September 30, 2021 (Unaudited)		March 31, 2021
Assets
Restricted cash	$	7,240	$	10,955
Finance receivables, net		131,033		150,706
Repossessed assets		745		631
Total assets	$	139,018	$	162,292
Liabilities
Credit facility	$	69,599	$	86,154
Accounts payable and accrued expenses		324		405
Total liabilities	$	69,923	$	86,559