Fair Value Measurements (Tables)

6 Months Ended

Oct. 31, 2025

Fair Value Measurement Methodology and Assumptions

The fair value of warrants issued is estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions in the table below.


	Six Months Ended October 31,
	2025		2024
Expected terms (years)	6		0
Risk-free interest rate	3.55	%	-	%
Volatility	57.73	%	-	%
Exercise stock price	22.63		-
Dividend yield	-	%	-	%

The methodology and assumptions utilized to estimate the fair value of the Company’s financial instruments and other assets are as follows:


Financial Instrument and Other Assets						Valuation Methodology

Cash, cash equivalents, and restricted cash						The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instruments (Level 1).

Repossessed inventory						The fair value approximates wholesale value (Level 1).

Finance receivables, net						The Company estimated the fair value of its receivables at what a third-party purchaser might be willing to pay. The Company has had discussions with third parties and has bought and sold portfolios and has had a third-party appraisal in October 2022 that indicates a range of 34% to 39% discount to face would be a reasonable fair value in a negotiated third-party transaction. The sale of finance receivables from Car-Mart of Arkansas to Colonial is made at a 38.5% discount. For financial reporting purposes these sale transactions are eliminated (Level 2).

Accounts payable						The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument (Level 2).

Contingent consideration payable for acquisition						The fair value is based upon inputs from the earn-out projection for the applicable acquisition (Level 2).

Revolving line of credit						The fair value approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently (Level 2).

Notes payable						The fair value is based upon inputs derived from prices for similar instruments at period end (Level 2).

Schedule of Estimated Fair Values and Carrying Amounts

The estimated fair values, and related carrying amounts, of the financial instruments and other assets included in the Company’s financial statements at October 31, 2025 and April 30, 2025 are as follows:


	October 31, 2025				April 30, 2025
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and cash equivalents	$	122,362	$	122,362	$	9,808	$	9,808
Restricted cash	128,609		128,609		114,729		114,729
Inventory - Repossessions	19,905		19,905		18,845		18,845
Finance receivables, net	1,172,025		931,979		1,180,673		928,130
Accounts payable	45,549		45,549		34,980		34,980
Contingent consideration	6,954		6,954		6,298		6,298
Senior secured notes payable, net	261,912		300,000		-		-

Revolving line of credit, net	-		-		204,769		204,769
Non-recourse notes payable, net	635,034		635,034		572,010		581,029