Note 12 - Warrants and Derivative Liabilities

6 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

12.

Warrants and Derivative Liabilities

The Company accounted for its warrants as liabilities due to certain adjustment provisions within the instruments, which required that they be recorded at fair value. The warrants were subject to revaluation at each balance sheet date and any change in fair value was recorded as a change in fair value of warrants until the earlier of its expiration or its exercise at which time the warrant liability was reclassified to equity. The Company calculated the fair value of the warrants utilizing an integrated lattice model. See Note

6,

"Fair Value Measurements", for further discussion.  As of

September 30, 2020

, the Company had 

no

remaining outstanding warrants.

Hercules Warrants

On

December 19, 2014,

the Company entered into a

second

amendment to the Loan and Security Agreement with Hercules (the "Hercules Second Amendment"). In conjunction with the Hercules Second Amendment, the Company issued the Hercules Warrant which replaced the First Warrant and the Second Warrant.  The Hercules Warrant was exercisable at any time after its issuance at an exercise price of

$7.85

per share, subject to certain price-based and other anti-dilution adjustments, including the equity offering in

May 2017,

the acquisition of Infinia Technology Corporation ("ITC") with common stock in

September 2017

and sales of common stock under the ATM entered into in

January 2017.  

This warrant had a fair value of

$0.4

million as of

March 31, 2019.  

On

April 8, 2019,

Hercules notified the Company of its intent to exercise this warrant on a cashless basis.  Hercules received

22,821

shares of the Company's common stock on

April 17, 2019. 

As a result of this exercise the Company recorded a net gain of

$0.1

million to change in fair value of warrants, resulting from the decrease in the fair value of the Hercules Warrant during the

six

 months ended

September 30, 2019

.  

November 2014

Warrant

On

November 13, 2014,

the Company completed an offering of

909,090

units of the Company's common stock with Hudson Bay Capital. Each unit consisted of

one

share of the Company's common stock and

0.9

of a warrant to purchase

one

share of common stock, or a warrant to purchase in the aggregate

818,181

shares.  The Hudson Warrants were exercisable at any time, at an exercise price equal to

$7.81

per share, subject to certain price-based and other anti-dilution adjustments including those noted above.  On

November 13, 2019,

Hudson partially exercised the Hudson Warrants for

786,000

restricted shares of Company common stock at

$7.81

per share

. 

The remaining

32,181

warrants expired on

November 13, 2019.

The Company recorded net gains of

$1.1

million and

$4.1

million to change in fair value of warrants, resulting from the decrease in the fair value of the Hudson Warrants during the

three

and 

six

months ended

September 30, 2019

 respectively.