Fair Value Measurements

9 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

6. Fair Value Measurements

The fair value of cash, restricted cash, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date as of December 31, 2021 and March 31, 2021. There were no financial assets or liabilities measured at fair value on a recurring basis as of March 31, 2021 and no other financial instruments in the Level 1, Level 2, or Level 3 categories as of December 31, 2021. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date. Refer to Note 4, “Acquisitions” for additional detail.

For the nine months ended December 31, 2021, changes in warrant liabilities were primarily related to Private Placement Warrants and Public Warrants defined and discussed in Note 12, “Common Stock and Warrants.” The Warrants were measured at fair value on a recurring basis.

On November 22, 2021, the Company called the Public Warrants and the Private Placement Warrants for redemption. The Company valued the Private Placement Warrants on the settlement date of exercise, using the fair market value of the Company's Class A common stock multiplied by the number of shares of Class A common stock to be issued per Warrant, which was determined in accordance with the terms of the warrant agreement and based on the redemption date and the volume weighted average price (the “Redemption Fair Market Value”) of the Class A common stock during the ten trading days immediately following the date on which the notice of redemption was sent to holders of Warrants. On a cashless basis exercise, the holder was entitled to receive 0.2516 shares of Class A common stock per Warrant. The Public Warrants were valued using the listed trading price on the relevant settlement date of exercise. Any Warrants not exercised by the redemption date, December 22, 2021, were automatically redeemed by the Company at

a price of $0.10 per Warrant. The change in fair value of warrant liabilities was recorded through the date of exercise or redemption within the condensed consolidated statements of operations and comprehensive loss. Since all liability-classified warrants were exercised or redeemed as of December 31, 2021, the associated warrant liabilities were reclassified to additional paid-in capital. As of December 31, 2021, no Warrants were outstanding. Refer to Note 12, “Common Stock and Warrants” for additional detail.

The change in the fair value of warrant liabilities is as follows:

	Warrant Liabilities
	(in thousands)
Balance at March 31, 2021	$	—
Assumption of Private Placement Warrants and Public Warrants		75,415
Redeemed/exercised warrants		(42,426	)
Change in fair value of warrant liabilities		(32,989	)
Balance at December 31, 2021	$	—

As of December 31, 2021, the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value. Due to the exercise and redemption of all Public Warrants and Private Placement Warrants during the period, there were no longer any Level 3 Private Placement Warrant liabilities.