2.	Summary of Significant Accounting Policies

There have been no significant changes to the Company’s accounting policies since it filed its audited consolidated financial statements in its Annual Report on Form

-K for the year ended

March

31,

2016.

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. It also includes non-controlling interest, which is the portion of equity in a subsidiary not attributable to a parent. The non-controlling interest of the Company and its subsidiaries are not considered to be permanent equity. Non-controlling interest’s share of subsidiary earnings is reflected as net loss (income) attributable to non-controlling interest in the condensed consolidated statements of operations and comprehensive loss. Additionally, certain prior period amounts have been reclassified to conform to the current year presentation on the condensed consolidated financial statements. The reclassification of the prior period amounts were not material to the previously reported condensed consolidated financial statements.

Liquidity

The Company has incurred significant historical losses and negative cash flows from operations and has an accumulated deficit of

$310

million at

December

31,

2016.

Until the Company can generate significant cash from operations, its ability to continue as a going concern is dependent upon obtaining additional financing. Management intends to raise additional funds through equity and/or debt offerings until the Company has positive operating cash flows. There is no assurance that the Company will be successful in generating or raising funds, if necessary, to sustain its operations for

twelve

months or beyond. Should the Company be unable to generate funds or obtain future financing, the Company

may

have to curtail operations by delaying development programs or relinquishing employees, which

may

have a material adverse effect on the Company's financial position and results of operations. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates these estimates, including, but not limited to, those related to the accounts receivable and allowance for doubtful accounts, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of stock-based awards, best estimate of selling price and income taxes. Actual results could differ from those estimates.

Revenue Recognition

The Company generates revenues by providing its software-as-a-service solutions through subscription license arrangements and related professional services, and related software maintenance. The Company presents revenue net of sales taxes and any similar assessments.

Revenue recognition criteria

. The Company recognizes revenue when

(1)

persuasive evidence of an arrangement exists,

(2)

delivery has occurred or services have been rendered,

(3)

fees are fixed or determinable and

(4)

collectability is reasonably assured. If the Company determines that any

one

of the

four

criteria is not met, the Company will defer recognition of revenue until all the criteria are met.

Multiple-Deliverable Arrangements.

The Company enters into arrangements with multiple-deliverables that generally include subscription, support and professional services. If a deliverable has standalone value, and delivery is probable and within the Company’s control, the Company accounts for the deliverable as a separate unit of accounting. Subscriptions to use its software solutions have standalone value as such services are often sold separately, primarily through renewals. Professional services have standalone value as the services have value to the customer on a standalone basis and are available from other vendors.

Upon separating the multiple-deliverables into separate units of accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on the vendor-specific objective evidence of the selling price (“VSOE”), if available, or its best estimate of the selling price (“BESP”), if VSOE is not available. The Company has determined that

third

-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant

third

-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any.

For professional services and subscription services, the Company has not established VSOE due to lack of pricing consistency and other factors. Accordingly, the Company uses its BESP to determine the relative selling price.

The Company determined BESP by considering its price list, as well as overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, contract prices per user, the size and volume of the Company’s transactions, the customer demographic and its market strategy.

Recurring revenues.

Recurring revenues consist of subscription license sales and services, maintenance revenues from previously sold perpetual licenses and hosting revenues. Recurring revenues are recognized ratably over the stated contractual period.

Non-recurring revenues.

Non-recurring revenues are comprised of revenues from professional services for system implementations, enhancements and training. For professional services arrangements billed on a time-and-materials basis, services are recognized as revenue as they are rendered. For fixed-fee professional service arrangements, the Company recognizes revenue under the proportional performance method of accounting and estimates the proportional performance utilizing hours incurred to date as a percentage of total estimated hours to complete the project. If the Company does not have a sufficient basis to measure progress toward completion, revenue is recognized upon completion. The Company recognizes a loss for a fixed-fee professional service if the total estimated project costs exceed project revenues.

Reimbursements, including those related to travel and out-of-pocket expenses are included in non-recurring revenues, and an equivalent amount of reimbursable expenses are included in non-recurring cost of revenues.

Customer Concentrations

Historically, a limited number of customers have accounted for a substantial portion of the Company’s revenues. However, during the

three

and

nine

months ended

December

31,

2016

and

2015,

no customer accounted for

10%

or more of the Company’s revenues or net accounts receivable, respectively.

Geographic Information

International revenues are attributable to countries based on the location of the customer. For the

three

and

nine

months ended

December

31,

2016

and

2015,

sales to international locations were derived primarily from France, the United Kingdom, Ireland, Norway, Australia, Canada, Switzerland, Italy, Germany, Singapore, Bermuda, the Netherlands, United Arab Emirates, Denmark, China, Hong Kong, India, Bulgaria and New Zealand.

	Three Months Ended						Nine Months Ended
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
International revenues		27	%		15	%		27	%		18	%
Domestic revenues		73	%		85	%		73	%		82	%
Total revenues		100	%		100	%		100	%		100	%

Recent Accounting Pronouncements

November

2016,

the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

18,

Statement of Cash Flows (Topic

230):

Restricted Cash

, which requires restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The update is effective for the Company beginning

April

2018

and early adoption is permitted. The Company does not expect the adoption of ASU

2016

to have a material impact on its consolidated financial statements.

October

2016,

the FASB issued ASU

2016

16,

Accounting for Income Taxes (Topic

740):

Intra-Entity Asset Transfers of Assets Other than Inventory

, which removes the prohibition in ASC

740

against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The update is effective for the Company beginning

April

2018

and early adoption is permitted. The Company is evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

August

2016,

the FASB issued ASU No.

2016

15,

Statement of Cash Flows (Topic

230):

Classification of Certain Cash Receipts and Cash Payments (Topic

230),

which addresses

eight

specific cash flow matters with the objective of reducing diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. The update is effective for fiscal years beginning after

December

15,

2017,

including interim reporting periods within that fiscal year. Early adoption is permitted. The Company does not expect the adoption of ASU

2016

to have a material impact on its consolidated financial statements.

March

2016,

the FASB issued ASU

2016

09,

Compensation

-Stock Compensation (Topic

718):

Improvements to Employee Share-Based Payment Accounting.

The amendments in this ASU affect all entities that issue share-based payment awards to their employees. The amendments simplify the accounting in various aspects for these types of transactions: i.e. Accounting for Income Taxes, Excess tax benefits on the Statements of Cash Flows, Forfeitures, Employee taxes and Intrinsic Value. The new guidance will be effective for the Company beginning on

April

2017

and earlier adoption is permitted. The Company is evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

April

2015,

the FASB issued ASU

2015

05,

Intangibles−Goodwill and Other−Internal-use Software (Subtopic

350

40):

Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,

providing guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. The standard update is effective for fiscal years beginning after

December

15,

2015

and interim periods within those fiscal years. The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

April

2015,

the FASB issued ASU

2015

03,

Interest—Imputation of Interest (Subtopic

835

30):

Simplifying the Presentation of Debt Issuance Costs

(“ASU

2015

03”).

This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is applicable to the Company for fiscal years beginning after

December

15,

2015.

Early adoption of ASU

2015

is permitted. The Company adopted this guidance effective

April

2016.

August

2015,

the FASB issued ASU

2015

15,

Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.

ASU

2015

supplements the requirements of ASU

2015

by allowing an entity to defer and present debt issuance costs related to a line of credit arrangement as an asset and subsequently amortize the deferred costs ratably over the term of the line of credit arrangement and was effective immediately. Retrospective adoption is required. The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

February

2015,

the FASB issued ASU

2015

02,

Consolidation (Subtopic

810)

Amendments to the Consolidation Analysis

to improve consolidation guidance for legal entities and affect the consolidation evaluation for reporting organizations. The standard update is effective for fiscal years beginning after

December

15,

2015

and interim periods within those years and early adoption is permitted. The standard allows for adoption retrospectively or with a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

May

2014,

the FASB issued ASU

2014

09,

Revenue from Contracts with Customers: Topic

606

and issued subsequent amendments to the initial guidance in

August

2015,

March

2016,

April

2016

and

May

2016

within ASU

2015

14,

ASU

2016

08,

ASU

2016

and ASU

2016

12,

respectively (ASU

2014

09,

ASU

2015

14,

ASU

2016

08,

ASU

2016

and ASU

2016

collectively, “Topic

606”).

Topic

606

supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of Topic

606

is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Topic

606

defines a

five

-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates

may

be required within the revenue recognition process than are required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. Topic

606

also provides guidance on the recognition of costs related to obtaining customer contracts. ASU No.

2015

deferred the effective date of the new revenue standard for periods beginning after

December

15,

2016

December

15,

2017,

with early adoption permitted but not earlier than the original effective date.

The Company is evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

The Company has reviewed other new accounting pronouncements that were issued as of

December

31,

2016

and does not believe that these pronouncements are applicable to the Company, or that they will have a material impact on its financial position or results of operations.