Fair Value Disclosures

12 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Disclosures

6. Fair Value Disclosures

Financial Instruments Measured at Fair Value

In fiscal year 2021 the Company initiated certain equity investments. The Company defined these equity investments as trading securities for which the changes in fair value were immediately recognized through net income in each quarter, respectively. The Company sold all equity investments as of March 31, 2021, all gains were recognized in the Consolidated Statements of Income, for the year ended March 31, 2021.

Financial Instruments Not Measured at Fair Value

The Company’s financial instruments consist of cash and restricted cash, finance receivables, repossessed assets, and the Credit Facility. For the cash, finance receivables, the credit facility, and note payable, the carrying value approximates fair value.

Based on current market conditions, any new or renewed credit facility would contain pricing that approximates the Company’s current Credit Facility. Based on these market conditions, the fair value of the Credit Facility as of March 31, 2022 was estimated to be equal to the book value. The interest rate for the Credit Facility is a variable rate based on SOFR pricing options. Similarly, the fair value for the note payable as of March 31, 2022 was equal to the book value. The interest rate for the note payable was 1%.

	Fair Value Measurement Using (In thousands)						Fair		Carrying
Description	Level 1		Level 2		Level 3		Value		Value
Cash and restricted cash:
March 31, 2022	$	4,775	$	—	$	—	$	4,775	$	4,775
March 31, 2021	$	32,977	$	—	$	—	$	32,977	$	32,977
Finance receivables:
March 31, 2022	$	—	$	—	$	168,600	$	168,600	$	168,600
March 31, 2021	$	—	$	—	$	170,318	$	170,318	$	170,318
Repossessed assets:
March 31, 2022	$	—	$	—	$	658	$	658	$	658
March 31, 2021	$	—	$	—	$	685	$	685	$	685
Credit facility:
March 31, 2022	$	—	$	—	$	55,000	$	55,000	$	55,000
March 31, 2021	$	—	$	—	$	88,300	$	88,300	$	88,300
Note payable:
March 31, 2022	$	3,244	$	—	$	—	$	3,244	$	3,244
March 31, 2021	$	3,244	$	—	$	—	$	3,244	$	3,244

The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. Management has determined that this level to be most appropriate for finance receivables, repossessed assets, and the Credit Facility shown in the table above.

Level 2 assets are financial assets and liabilities that do not have regular market pricing, but whose fair value can be determined based on other data values or market pricing. Management has determined that this level to be most appropriate for the credit facility shown in the table above.

Level 1 assets are financial assets that have a regular mark to market mechanism for setting a fair market value. These assets are considered to have readily observable, transparent prices and therefore a reliable, fair market value. Management has determined that this level to be most appropriate for cash, restricted cash, note payable, and equity investments.