Summary of Significant Accounting Policies

There have been

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, 2017.

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. 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.

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 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 (

) persuasive evidence of an arrangement exists, (

) delivery has occurred or services have been rendered, (

) fees are fixed or determinable and (

) 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.

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.

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

uring the

three

and

nine

months ended

December 31, 2017

and

2016,

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, 2017

and

2016,

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

	Three Months Ended						Nine Months Ended
	Dec ember 31, 2017			Dec ember 31, 2016			Dec ember 31, 2017			Dec ember 31, 2016
International revenues		35	%		27	%		32	%		27	%
Domestic revenues		65	%		73	%		68	%		73	%
Total revenues		100	%		100	%		100	%		100	%

Recent Accounting Pronouncements

May 2017,

the FASB issued ASU

2017

09,

Compensation-Stock Compensation (Topic

718

): Scope of Modification Accounting,

which clarifies what constitutes a modification of a share-based payment award. This guidance is effective for fiscal years beginning after

December 15, 2017.

The Company does

not

expect the adoption of ASU

2017

to have a material impact on its condensed consolidated financial statements.

January 2017,

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

2017

04,

Intangibles—Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment

, which simplifies the accounting for goodwill impairments by eliminating step

two

from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. ASU

2017

also clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity’s testing of reporting units for goodwill impairment, and clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for annual reporting periods beginning after

December 15, 2019

and interim periods within those fiscal years. The Company is currently assessing the potential impact of the adoption of ASC

2017

on its consolidated financial statements.

January 2017,

the FASB issued ASU

2017

01,

Clarifying the Definition of a Business

. The new guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is

not

a business. The guidance also requires a business to include at least

one

substantive process and narrows the definition of outputs. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2017.

The Company does

not

expect the adoption of this update to have a material impact 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.

The Company does

not

expect the adoption of this update 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 was effective for the Company beginning on

April 1, 2017.

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,

May 2016,

September 2017

and

November 2017

within ASU

2015

14,

ASU

2016

08,

ASU

2016

10,

ASU

2016

and ASU

2017

13,

respectively (ASU

2014

09,

ASU

2015

14,

ASU

2016

08,

ASU

2016

10,

ASU

2016

12,

ASU

2017

and ASU

2017

14,

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 did

not

early adopt the new standard and continues to assess the impact of the adoption on its financial position, results of operations, cash flows and related disclosures and whether the effect will be material. The Company preliminarily believes that the commissions accounting under the new standard is expected to be significantly different than the Company’s current capitalization policy. The new standard will result in additional types of costs that will be capitalized and amounts will be amortized over a period longer than the Company’s current policy. The new standard also requires incremental disclosures including information about the remaining transaction price and when the Company expects to recognize revenue. The Company continues to assess the new standard along with industry trends and additional interpretive guidance and

may

adjust its interpretation and implementation plan accordingly.

The Company has review

ed other new accounting pronouncements that were issued as of

December 31, 2017

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.