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California
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77-0309142
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(State or other jurisdiction
of incorporation or organization) |
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(I.R.S. Employer
Identification No.) |
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412 Mount Kemble Ave.,
Suite 110C Morristown, NJ |
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07960
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(Address of principal executive offices)
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(Zip code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, par value $0.002 per share
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NYSE American
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| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ (Do not check if a smaller reporting company) | | | Smaller reporting company ☐ | |
| | | | Emerging growth company ☒ | |
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INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | | | | | | | |
SIGNATURES | | | | | | | |
EXHIBIT INDEX | | | | | | | |
Area of Product/Service
|
| |
Competitors
|
|
Internally developed software
|
| | Many insurance companies have sufficient IT resources to maintain and augment their own proprietary, legacy systems, or consider developing new custom systems. | |
Insurance software vendors
|
| | Vendors such as Duck Creek, Guidewire Software, Inc., FINEOS, OneShield, Inc., FAST, Oracle, Sapiens International Corporation, and Insurity, provide software solutions that are specifically designed to meet the needs of insurance carriers. | |
Area of Product/Service
|
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Competitors
|
|
Consulting Services firms
|
| | Firms such as Accenture, Deloitte, E&Y, Nolan Group, CSC, Cognizant, CGI, Mphasis and Tata Consultancy Services Limited offer consulting and other services such as testing, application maintenance, and custom development, solutions for the insurance industry. | |
Fiscal 2018:
|
| |
High
|
| |
Low
|
| ||||||
4th Quarter
|
| | | $ | 6.00 | | | | | $ | 5.03 | | |
3rd Quarter
|
| | | $ | 6.43 | | | | | $ | 4.84 | | |
2nd Quarter
|
| | | $ | 5.18 | | | | | $ | 4.35 | | |
1st Quarter
|
| | | $ | 5.57 | | | | | $ | 4.60 | | |
Fiscal 2017:
|
| |
High
|
| |
Low
|
| ||||||
4th Quarter
|
| | | $ | 6.09 | | | | | $ | 4.92 | | |
3rd Quarter
|
| | | $ | 6.28 | | | | | $ | 4.50 | | |
2nd Quarter
|
| | | $ | 5.72 | | | | | $ | 4.82 | | |
1st Quarter
|
| | | $ | 6.50 | | | | | $ | 4.80 | | |
| | |
Fiscal Year
Ended March 31, 2014 |
| |
Fiscal Year
Ended March 31, 2015 |
| |
Fiscal Year
Ended March 31, 2016 |
| |
Fiscal Year
Ended March 31, 2017 |
| |
Fiscal Year
Ended March 31, 2018 |
| |||||||||||||||
Revenues
|
| | | $ | 82,837 | | | | | $ | 79,282 | | | | | $ | 113,302 | | | | | $ | 121,768 | | | | | $ | 122,985 | | |
Income (loss) before income tax
|
| | | | 4,813 | | | | | | (792) | | | | | | (4,749) | | | | | | (825) | | | | | | (2,946) | | |
Net income (loss)
|
| | | | 2,920 | | | | | | (651) | | | | | | (3,562) | | | | | | (922) | | | | | | (5,001) | | |
Net income (loss) per share – basic
|
| | | | 0.02 | | | | | | (0.02) | | | | | | (0.10) | | | | | | (0.02) | | | | | | (0.14) | | |
Net income (loss) per share – diluted
|
| | | | 0.02 | | | | | | (0.02) | | | | | | (0.10) | | | | | | (0.02) | | | | | | (0.14) | | |
| | |
Fiscal Year
Ended March 31, 2014 |
| |
Fiscal Year
Ended March 31, 2015 |
| |
Fiscal Year
Ended March 31, 2016 |
| |
Fiscal Year
Ended March 31, 2017 |
| |
Fiscal Year
Ended March 31, 2018 |
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 10,041 | | | | | $ | 6,532 | | | | | $ | 6,154 | | | | | $ | 12,464 | | | | | $ | 9,152 | | |
Working capital
|
| | | | 4,854 | | | | | | 6,275 | | | | | | 5,665 | | | | | | 9,599 | | | | | | 5,734 | | |
Total assets
|
| | | | 48,438 | | | | | | 45,545 | | | | | | 94,621 | | | | | | 90,014 | | | | | | 96,526 | | |
Short-term debt
|
| | | | 0 | | | | | | 1,470 | | | | | | 6,951 | | | | | | 2,561 | | | | | | 5,269 | | |
Long-term debt
|
| | | | 0 | | | | | | 3,000 | | | | | | 6,800 | | | | | | 10,000 | | | | | | 8,367 | | |
Stockholders’ equity
|
| | | | 20,538 | | | | | | 20,556 | | | | | | 45,557 | | | | | | 45,848 | | | | | | 45,167 | | |
| Non-compete agreements | | | 3 years | |
| Leasehold benefit | | |
Ascertainable life or primary period of lease whichever is less
|
|
| Internal-use Software | | | 1 – 5 years | |
| Intellectual Property Rights | | | 1 – 5 years | |
| Customer Contracts | | | 1 – 3 years | |
| Customer Relationships | | | 6 – 8 years | |
| Technology | | | 6 years | |
| Leasehold Improvements | | | 5 years or over the primary period of lease whichever is less | |
| Computers | | | 2 years | |
| Plant and Equipment | | | 2 – 5 years | |
| Furniture and Fixtures | | | 5 years | |
| Vehicles | | | 5 years | |
| Office Equipment | | | 2 – 5 years | |
| | |
Fiscal Years Ended
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| |||||||||||||||||||||||||||||||||
(U.S. Dollars; dollar amounts in thousands):
|
| |
March 31,
2018 |
| |
%
|
| |
March 31,
2017 |
| |
%
|
| |
March 31,
2016 |
| |
%
|
| ||||||||||||||||||
Total Revenue
|
| | | $ | 122,985 | | | | | | | | | | | $ | 121,768 | | | | | | | | | | | $ | 113,302 | | | | | | | | |
Total cost of revenues
|
| | | | 67,120 | | | | | | 55% | | | | | | 63,461 | | | | | | 52% | | | | | | 62,832 | | | | | | 55% | | |
Total gross profit
|
| | | | 55,865 | | | | | | | | | | | | 58,307 | | | | | | | | | | | | 50,470 | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development expenses
|
| | | | 17,250 | | | | | | 14% | | | | | | 17,236 | | | | | | 14% | | | | | | 16,267 | | | | | | 14% | | |
Selling, general and administrative expenses
|
| | | | 41,022 | | | | | | 33% | | | | | | 41,310 | | | | | | 34% | | | | | | 38,204 | | | | | | 34% | | |
Restructuring costs
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 465 | | | | | | | | |
Total operating expenses
|
| | | | 58,272 | | | | | | | | | | | | 58,546 | | | | | | | | | | | | 54,936 | | | | | | | | |
Income (loss) from operations
|
| | | | (2,407) | | | | | | | | | | | | (239) | | | | | | | | | | | | (4,466) | | | | | | | | |
Interest income
|
| | | | 51 | | | | | | | | | | | | 41 | | | | | | | | | | | | 24 | | | | | | | | |
Interest expense
|
| | | | (516) | | | | | | | | | | | | (612) | | | | | | | | | | | | (596) | | | | | | | | |
Other income (expenses), net
|
| | | | (74) | | | | | | | | | | | | (15) | | | | | | | | | | | | 289 | | | | | | | | |
Income (loss) before provision for income
taxes |
| | | | (2,946) | | | | | | | | | | | | (825) | | | | | | | | | | | | (4,749) | | | | | | | | |
Income taxes (benefit)
|
| | | | 2,055 | | | | | | | | | | | | 97 | | | | | | | | | | | | (1,187) | | | | | | | | |
Net income (loss)
|
| | | $ | (5,001) | | | | | | (4.07)% | | | | | $ | (922) | | | | | | (0.76)% | | | | | $ | (3,562) | | | | | | (3)% | | |
|
| | |
Fiscal years ended
|
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(U.S. dollars; dollar amounts in thousands):
|
| |
March 31,
2017 |
| |
%
|
| |
March 31,
2017 |
| |
%
|
| |
March 31,
2016 |
| |
%
|
| ||||||||||||||||||
Geography: North America | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Legal Entity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Majesco
|
| | | $ | 35,539 | | | | | | 29% | | | | | $ | 27,395 | | | | | | 23% | | | | | $ | 25,646 | | | | | | 23% | | |
Majesco Software and Solutions Inc
|
| | | | 46,430 | | | | | | 38% | | | | | | 52,357 | | | | | | 43% | | | | | | 54,928 | | | | | | 48% | | |
Cover-All Systems Inc
|
| | | | 26,173 | | | | | | 21% | | | | | | 27,325 | | | | | | 22% | | | | | | 17,636 | | | | | | 16% | | |
Majesco Canada Ltd., Canada
|
| | | | 1,203 | | | | | | 1% | | | | | | 1,748 | | | | | | 1% | | | | | | 2,175 | | | | | | 2% | | |
| | | | $ | 109,345 | | | | | | 89% | | | | | $ | 108,825 | | | | | | 89% | | | | | $ | 100,385 | | | | | | 89% | | |
Geography: The United Kingdom | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Legal Entity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Majesco UK Limited, UK
|
| | | $ | 6,651 | | | | | | 5% | | | | | $ | 8,167 | | | | | | 7% | | | | | $ | 8,935 | | | | | | 8% | | |
Geography: Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Legal Entity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Majesco Sdn. Bhd., Malaysia
|
| | | $ | 5,248 | | | | | | 4% | | | | | $ | 3,625 | | | | | | 3% | | | | | $ | 3,671 | | | | | | 3% | | |
Majesco Asia Pacific Pte. Ltd., Singapore
|
| | | | 379 | | | | | | 1% | | | | | | 59 | | | | | | 0% | | | | | | 73 | | | | | | 0% | | |
Majesco Software and Solutions India Private Limited, India
|
| | | | 1,362 | | | | | | 1% | | | | | | 1,092 | | | | | | 1% | | | | | | 238 | | | | | | 0% | | |
| | | | $ | 6,989 | | | | | | 6% | | | | | $ | 4,776 | | | | | | 4% | | | | | $ | 3,982 | | | | | | 3% | | |
Total Revenues
|
| | | $ | 122,985 | | | | | | | | | | | $ | 121,768 | | | | | | | | | | | $ | 113,302 | | | | | | | | |
|
| | |
Fiscal years ended
|
| |||||||||
(U.S. dollar amounts; in thousands)
|
| |
March 31, 2018
|
| |
March 31, 2017
|
| ||||||
Net Income (loss)
|
| | | $ | (5,001) | | | | | $ | (922) | | |
Add: | | | | | | | | | | | | | |
Provision for income taxes
|
| | | | 2,055 | | | | | | 97 | | |
Depreciation and amortization
|
| | | | 4,849 | | | | | | 4,720 | | |
Interest expense
|
| | | | 516 | | | | | | 612 | | |
Less: | | | | | | | | | | | | | |
Interest income
|
| | | | (51) | | | | | | (41) | | |
Other income, net
|
| | | | 74 | | | | | | 15 | | |
EBITDA
|
| | | $ | 2,442 | | | | | $ | 4,481 | | |
Add: | | | | | | | | | | | | | |
Stock based compensation
|
| | | | 3,253 | | | | | | 1,578 | | |
Adjusted EBITDA
|
| | | | 5,695 | | | | | | 6,059 | | |
Revenue
|
| | | | 122,985 | | | | | | 121,768 | | |
Adjusted EBITDA as a % of Revenue
|
| | | | 4.63% | | | | | | 4.98% | | |
| | |
Fiscal years ended
|
| |||||||||
(U.S. dollar amounts; in thousands)
|
| |
March 31, 2017
|
| |
March 31, 2016
|
| ||||||
Net Income (loss)
|
| | | $ | (922) | | | | | $ | (3,562) | | |
Add: | | | | | | | | | | | | | |
Provision (benefit) for income taxes
|
| | | | 97 | | | | | | (1,187) | | |
Depreciation and amortization
|
| | | | 4,720 | | | | | | 3,842 | | |
Interest expense
|
| | | | 612 | | | | | | 596 | | |
Less: | | | | | | | | | | | | | |
Interest income
|
| | | | (41) | | | | | | (24) | | |
Other income (expenses), net
|
| | | | 15 | | | | | | (289) | | |
EBITDA
|
| | | $ | 4,481 | | | | | $ | (624) | | |
Add: | | | | | | | | | | | | | |
Restructuring costs
|
| | | | — | | | | | | 465 | | |
Stock based compensation
|
| | | | 1,578 | | | | | | 748 | | |
Adjusted EBITDA
|
| | | | 6,059 | | | | | | 589 | | |
Revenue
|
| | | | 121,768 | | | | | | 113,302 | | |
Adjusted EBITDA as a % of Revenue
|
| | | | 4.98% | | | | | | 0.52% | | |
Particulars
|
| |
Total
|
| |
<1 Year
|
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
>5 Years
|
| |||||||||||||||
Capital Leases
|
| | | | 203 | | | | | | 203 | | | | | | — | | | | | | — | | | | | | — | | |
Operating Leases
|
| | | | 8,176 | | | | | | 3,166 | | | | | | 3,993 | | | | | | 580 | | | | | | 437 | | |
Purchase Obligations
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Long-Term Debt – HSBC Term Loan
|
| | | | 8,333 | | | | | | 3,333 | | | | | | 5,000 | | | | | | — | | | | | | — | | |
PCFC Facility, HSBC Receivable Purchase Facility and Auto loan
|
| | | | 5,303 | | | | | | 5,269 | | | | | | 34 | | | | | | — | | | | | | — | | |
Other Obligations – Contingent Consideration
|
| | | | 835 | | | | | | 835 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 22,850 | | | | | $ | 12,806 | | | | | $ | 9,027 | | | | | $ | 580 | | | | | $ | 437 | | |
|
| | |
Asset
|
| |
Liability
|
| ||||||||||||||||||
(in US dollars; dollar amounts in thousands)
|
| |
Noncurrent*
|
| |
Current*
|
| |
Noncurrent*
|
| |
Current*
|
| ||||||||||||
As of March 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Designated as hedging instruments under Cash Flow Hedges | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign exchange forward contracts
|
| | | $ | 194 | | | | | $ | 46 | | | | | $ | 17 | | | | | $ | 127 | | |
| | | | $ | 194 | | | | | $ | 46 | | | | | $ | 17 | | | | | $ | 127 | | |
As of March 31, 2017 | | | | | | | | | | | |||||||||||||||
Designated as hedging instruments under Cash Flow Hedges | | | | | | ||||||||||||||||||||
Foreign exchange forward contracts
|
| | | $ | 0 | | | | | $ | 99 | | | | | $ | 10 | | | | | $ | — | | |
| | | | $ | 0 | | | | | $ | 99 | | | | | $ | 10 | | | | | $ | — | | |
(a) |
1. |
Financial Statements |
| | |
Page
|
||
| | | | F-2 | |
| | | | F-3 | |
| | | | F-4 | |
| | | | F-5 | |
| | | | F-6 | |
| | | | F-7 | |
| | | | F-8 |
| | |
March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
ASSETS | | | | ||||||||||
CURRENT ASSETS
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 9,152 | | | | | $ | 11,635 | | |
Short term investments
|
| | | | — | | | | | | 829 | | |
Restricted cash
|
| | | | 53 | | | | | | 53 | | |
Accounts receivables, net
|
| | | | 19,103 | | | | | | 12,227 | | |
Unbilled accounts receivable
|
| | | | 9,997 | | | | | | 8,563 | | |
Deferred income tax assets
|
| | | | — | | | | | | 2,018 | | |
Prepaid expenses and other current assets
|
| | | | 9,494 | | | | | | 5,961 | | |
Total current assets
|
| | | | 47,799 | | | | | | 41,286 | | |
Property and equipment, net
|
| | | | 2,755 | | | | | | 3,659 | | |
Intangible assets, net
|
| | | | 6,535 | | | | | | 8,708 | | |
Deferred income tax assets
|
| | | | 7,171 | | | | | | 3,856 | | |
Other assets
|
| | | | 50 | | | | | | 289 | | |
Goodwill
|
| | | | 32,216 | | | | | | 32,216 | | |
Total Assets
|
| | | $ | 96,526 | | | | | $ | 90,014 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
CURRENT LIABILITIES
|
| | | | | | | | | | | | |
Loan from bank
|
| | | $ | 5,269 | | | | | $ | 2,561 | | |
Accounts payable
|
| | | | 2,353 | | | | | | 2,923 | | |
Accrued expenses and other liabilities
|
| | | | 22,032 | | | | | | 14,911 | | |
Capital lease obligation
|
| | | | 203 | | | | | | 310 | | |
Deferred revenue
|
| | | | 12,201 | | | | | | 10,982 | | |
Total current liabilities
|
| | | | 42,058 | | | | | | 31,687 | | |
Capital lease obligation, net of current portion
|
| | | | — | | | | | | 288 | | |
Term loan – bank
|
| | | | 8,367 | | | | | | 10,000 | | |
Others
|
| | | | 928 | | | | | | 2,191 | | |
Total Liabilities
|
| | | $ | 51,353 | | | | | $ | 44,166 | | |
Commitments and contingencies
|
| | | | — | | | | | | — | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Preferred stock, par value $0.002 per share – 50,000,000 share authorized as of March 31, 2018 and March 31, 2017; NIL shares issued and outstanding as of March 31, 2018 and March 31, 2017
|
| | | $ | — | | | | | $ | — | | |
Common stock, par value $0.002 per share – 450,000,000 shares authorized as of
March 31, 2018 and 450,000,000 shares authorized as of March 31, 2017; 36,600,457 shares issued and outstanding as of March 31, 2018 and 36,508,203 shares issued and outstanding as of March 31, 2017 |
| | | | 73 | | | | | | 73 | | |
Additional paid-in capital
|
| | | | 75,022 | | | | | | 71,343 | | |
Accumulated deficit
|
| | | | (30,283) | | | | | | (25,282) | | |
Accumulated other comprehensive income
|
| | | | 361 | | | | | | (286) | | |
Total stockholders’ equity
|
| | | | 45,173 | | | | | | 45,848 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 96,526 | | | | | $ | 90,014 | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
Revenue
|
| | | $ | 122,985 | | | | | $ | 121,768 | | | | | $ | 113,302 | | |
Cost of revenue
|
| | | | 67,120 | | | | | | 63,461 | | | | | | 62,832 | | |
Gross profit
|
| | | $ | 55,865 | | | | | $ | 58,307 | | | | | $ | 50,470 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | |
Research and development expenses
|
| | | $ | 17,250 | | | | | $ | 17,236 | | | | | $ | 16,267 | | |
Selling, general and administrative expenses
|
| | | | 41,022 | | | | | | 41,310 | | | | | | 38,204 | | |
Restructuring costs
|
| | | | — | | | | | | — | | | | | | 465 | | |
Total operating expenses
|
| | | $ | 58,272 | | | | | $ | 58,546 | | | | | $ | 54,936 | | |
Loss from operations
|
| | | $ | (2,407) | | | | | $ | (239) | | | | | $ | (4,466) | | |
Interest income
|
| | | | 51 | | | | | | 41 | | | | | | 24 | | |
Interest expense
|
| | | | (516) | | | | | | (612) | | | | | | (596) | | |
Other income (expenses),net
|
| | | | (74) | | | | | | (15) | | | | | | 289 | | |
Loss before provision for income taxes
|
| | | $ | (2,946) | | | | | $ | (825) | | | | | $ | (4,749) | | |
(Benefit)/Provision for income taxes
|
| | | | 2,055 | | | | | | 97 | | | | | | (1,187) | | |
Net Loss
|
| | | $ | (5,001) | | | | | $ | (922) | | | | | $ | (3,562) | | |
Earnings (Loss) per share: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.14) | | | | | $ | (0.02) | | | | | $ | (0.10) | | |
Diluted
|
| | | $ | (0.14) | | | | | $ | (0.02) | | | | | $ | (0.10) | | |
Weighted average number of common shares outstanding(1) | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 36,540,199 | | | | | | 36,477,774 | | | | | | 35,055,000 | | |
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
Net Loss
|
| | | $ | (5,001) | | | | | $ | (922) | | | | | $ | (3,562) | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | 638 | | | | | | (567) | | | | | | (1,662) | | |
Unrealized (loss)/gains on cash flow hedges
|
| | | | 9 | | | | | | (58) | | | | | | (243) | | |
Other comprehensive loss
|
| | | $ | 647 | | | | | $ | (625) | | | | | $ | (1,905) | | |
Comprehensive Loss
|
| | | $ | (4,354) | | | | | $ | (1,547) | | | | | $ | (5,467) | | |
Less: Comprehensive income attributable to the non-controlling interest
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Comprehensive Loss attributable to Owners of the Company
|
| | | $ | (4,354) | | | | | $ | (1,547) | | | | | $ | (5,467) | | |
|
| | |
Common Stock
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income |
| |
Non-
controlling interests |
| |
Total
Stockholders’ equity |
| ||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2015
|
| | | | 30,575,000 | | | | | $ | 61 | | | | | $ | 39,049 | | | | | $ | (20,798) | | | | | $ | 2,244 | | | | | | — | | | | | $ | 20,556 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 748 | | | | | | — | | | | | | — | | | | | | — | | | | | | 748 | | |
Cover-All Merger
|
| | | | 5,876,357 | | | | | | 12 | | | | | | 29,708 | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,720 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,562) | | | | | | — | | | | | | — | | | | | | (3,562) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,662) | | | | | | — | | | | | | (1,662) | | |
Unrealized gains on cash flow hedges
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (243) | | | | | | — | | | | | | (243) | | |
Balance as of March 31, 2016
|
| | | | 36,451,357 | | | | | $ | 73 | | | | | $ | 69,505 | | | | | $ | (24,360) | | | | | $ | 339 | | | | | $ | — | | | | | $ | 45,557 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (922) | | | | | | — | | | | | | — | | | | | | (922) | | |
Issue of stock under ESOP and ESPP
|
| | | | 56,846 | | | | | | — | | | | | | 260 | | | | | | — | | | | | | — | | | | | | — | | | | | | 260 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 1,578 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,578 | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (567) | | | | | | — | | | | | | (567) | | |
Unrealized gains on cash flow hedges
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (58) | | | | | | — | | | | | | (58) | | |
Balance as of March 31, 2017
|
| | | | 36,508,203 | | | | | $ | 73 | | | | | $ | 71,343 | | | | | $ | (25,282) | | | | | $ | (286) | | | | | $ | — | | | | | $ | 45,848 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (5,001) | | | | | | — | | | | | | — | | | | | | (5,001) | | |
Issue of stock under ESOP and ESPP
|
| | | | 92,254 | | | | | | — | | | | | | 426 | | | | | | — | | | | | | — | | | | | | — | | | | | | 426 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 3,253 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,253 | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 638 | | | | | | — | | | | | | 638 | | |
Unrealized gains on cash flow hedges
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9 | | | | | | — | | | | | | 9 | | |
Balance as of March 31, 2018
|
| | | | 36,600,457 | | | | | $ | 73 | | | | | $ | 75,022 | | | | | $ | (30,283) | | | | | $ | 361 | | | | | $ | — | | | | | $ | 45,173 | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
Net income (loss)
|
| | | $ | (5,001) | | | | | $ | (922) | | | | | $ | (3,562) | | |
Adjustments to reconcile net (loss) to net cash provided by | | | | | | | | | | | | | | | | | | | |
operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 4,848 | | | | | | 4,720 | | | | | | 3,843 | | |
Share based compensation expenses
|
| | | | 3,253 | | | | | | 1,578 | | | | | | 748 | | |
Impairment of goodwill
|
| | | | — | | | | | | 60 | | | | | | — | | |
Provision/(recovery) for doubtful receivables
|
| | | | 335 | | | | | | 984 | | | | | | (149) | | |
Deferred tax (benefit)/expense
|
| | | | (1,300) | | | | | | (429) | | | | | | (2,227) | | |
Accounts receivables
|
| | | | (6,767) | | | | | | 9,049 | | | | | | (13,135) | | |
Unbilled accounts receivable
|
| | | | (1,216) | | | | | | (1,399) | | | | | | (1,615) | | |
Prepaid expenses and other current assets
|
| | | | (3,284) | | | | | | 428 | | | | | | (1,355) | | |
Accounts payable
|
| | | | (570) | | | | | | (751) | | | | | | 2,097 | | |
Accrued expenses and other liabilities – Others
|
| | | | 7,130 | | | | | | (1,459) | | | | | | 6,215 | | |
Deferred revenue
|
| | | | 1,179 | | | | | | (215) | | | | | | 3,859 | | |
Other liabilities
|
| | | | (1,257) | | | | | | (1,283) | | | | | | (470) | | |
Net cash generated (used in) from operating activities
|
| | | $ | (2,650) | | | | | $ | 10,361 | | | | | $ | (5,751) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | $ | (1,166) | | | | | $ | (2,104) | | | | | $ | (2,875) | | |
Purchase of intangible assets
|
| | | | (532) | | | | | | (955) | | | | | | (268) | | |
Sale of tangible Assets
|
| | | | 40 | | | | | | 139 | | | | | | 60 | | |
Acquisition of Agile Technologies, LLC assets, net of $158 cash acquired
|
| | | | — | | | | | | — | | | | | | — | | |
Cash acquired on business combination
|
| | | | — | | | | | | — | | | | | | 3,203 | | |
Consideration paid on acquisition of Majesco Singapore
|
| | | | — | | | | | | — | | | | | | (276) | | |
Sale/(Purchase) of investments
|
| | | | 869 | | | | | | (223) | | | | | | (364) | | |
Payment to related party
|
| | | | — | | | | | | — | | | | | | — | | |
Payment to Majesco as reorganization consideration
|
| | | | — | | | | | | — | | | | | | (3,520) | | |
(Increase)/decrease in restricted cash
|
| | | | — | | | | | | 205 | | | | | | 48 | | |
Net cash used in investing activities
|
| | | $ | (789) | | | | | $ | (2,938) | | | | | $ | (3,992) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Payment of capital lease obligation
|
| | | $ | (395) | | | | | $ | 318 | | | | | $ | (62) | | |
Receipt of term loan
|
| | | | 4,709 | | | | | | 13,404 | | | | | | 43,340 | | |
Repayment of loan
|
| | | | (3,624) | | | | | | (14,553) | | | | | | (34,060) | | |
Payment for buy back of non-controlling Interest
|
| | | | — | | | | | | — | | | | | | — | | |
Net cash (used in)/provided by financing activities
|
| | | $ | 690 | | | | | $ | (831) | | | | | $ | 9,218 | | |
Effect of foreign exchange rate changes on cash and cash equivalents
|
| | | | 266 | | | | | | (477) | | | | | | (217) | | |
Net (decrease)/increase in cash and cash equivalents
|
| | | $ | (2,483) | | | | | $ | 6,115 | | | | | $ | (742) | | |
Cash and cash equivalents, beginning of the period
|
| | | | 11,635 | | | | | | 5,520 | | | | | | 6,262 | | |
Cash and cash equivalents at end of the period
|
| | | $ | 9,152 | | | | | $ | 11,635 | | | | | $ | 5,520 | | |
Supplementary disclosure of non-cash items | | | | | | | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 491 | | | | | $ | 591 | | | | | $ | 510 | | |
Cash paid for income taxes (net of refunds received)
|
| | | | 3,235 | | | | | | 614 | | | | | | 1,257 | | |
Supplementary disclosure of non-cash items | | | | | | | | | | | | | | | | | | | |
Non-cash items – Assets acquired under Capital leases
|
| | | $ | Nil | | | | | $ | 484 | | | | | $ | 40 | | |
|
Leasehold Improvements
|
| |
5 years or over the primary period of lease whichever is less
|
|
| Computers | | | 2 years | |
| Plant and Equipment | | | 2 – 5 years | |
| Furniture and Fixtures | | | 5 years | |
| Vehicles | | | 5 years | |
| Office Equipment | | | 2 – 5 years | |
| Non-compete agreements | | | 3 years | |
| Leasehold benefit | | |
Ascertainable life or primary period of lease whichever is less
|
|
| Internal-use Software | | | 1 – 5 years | |
|
Intellectual Property Rights
|
| | 1 – 5 years | |
| Customer Contracts | | | 1 – 3 years | |
| Customer Relationships | | | 6 – 8 years | |
| Technology | | | 6 years | |
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Assets | | | | | | | | | | | | | |
Level 2 | | | | | | | | | | | | | |
Derivative financial instruments (included in the following line items in
the Combined balance sheet) |
| | | | | | | | | | | | |
Other assets
|
| | | $ | 46 | | | | | $ | — | | |
Other liabilities
|
| | | | (17) | | | | | | (10) | | |
Prepaid expenses and other current assets
|
| | | | 194 | | | | | | 99 | | |
Accrued expenses and other liabilities
|
| | | | (127) | | | | | | — | | |
| | | | $ | 96 | | | | | $ | 89 | | |
Level 3 | | | | | | | | | | | | | |
Contingent consideration | | | | | | | | | | | | | |
Other liabilities
|
| | | $ | — | | | | | $ | — | | |
Accrued expenses and other liabilities
|
| | | | (835) | | | | | | (756) | | |
| | | | $ | (835) | | | | | $ | (756) | | |
Total | | | | $ | (739) | | | | | $ | (667) | | |
|
| | |
As of March 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Opening balance
|
| | | $ | (756) | | | | | $ | (593) | | | | | $ | (1,712) | | |
Additions
|
| | | | — | | | | | | — | | | | | | — | | |
Total (Losses)/gains recognized in Statement of
Operations |
| | | | (79) | | | | | | (163) | | | | | | (344) | | |
Settlements
|
| | | | — | | | | | | — | | | | | | 1,463 | | |
Closing balance
|
| | | $ | (835) | | | | | $ | (756) | | | | | $ | (593) | | |
|
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Leasehold improvements
|
| | | $ | 655 | | | | | $ | 549 | | |
Computers
|
| | | | 6,191 | | | | | | 6,444 | | |
Plant and Equipment
|
| | | | 1,316 | | | | | | 3,506 | | |
Furniture and Fixtures
|
| | | | 1,537 | | | | | | 2,469 | | |
Vehicles
|
| | | | 266 | | | | | | 260 | | |
Office Equipment
|
| | | | 697 | | | | | | 971 | | |
Capital Work in Progress
|
| | | | 37 | | | | | | — | | |
Total
|
| | | $ | 10,699 | | | | | $ | 14,199 | | |
Less: Accumulated depreciation
|
| | | | (7,944) | | | | | | (10,540) | | |
Property and Equipment, net
|
| | | $ | 2,755 | | | | | $ | 3,659 | | |
|
| | |
Weighted
Average amortization period (in years) |
| |
As of March 31, 2018
|
| |
As of March 31, 2017
|
| |||||||||||||||||||||||||||||||||
|
Gross
carrying amount |
| |
Accumulated
amortization |
| |
Net
carrying value |
| |
Gross
carrying amount |
| |
Accumulated
amortization |
| |
Net
carrying value |
| ||||||||||||||||||||||||||
Customer contracts
|
| | | | 3 | | | | | $ | 2,950 | | | | | $ | (1,955) | | | | | $ | 995 | | | | | $ | 2,950 | | | | | $ | (1,955) | | | | | $ | 995 | | |
Customer relationships
|
| | | | 6 | | | | | | 6,720 | | | | | | (2,205) | | | | | | 4,515 | | | | | | 6,720 | | | | | | (1,828) | | | | | | 4,892 | | |
Intellectual Property Rights
|
| | | | 3 | | | | | | 494 | | | | | | (494) | | | | | | — | | | | | | 2,299 | | | | | | (2,299) | | | | | | — | | |
Technology
|
| | | | 6 | | | | | | 3,110 | | | | | | (2,781) | | | | | | 329 | | | | | | 3,110 | | | | | | (907) | | | | | | 2,203 | | |
Software
|
| | | | 3 | | | | | | 4,807 | | | | | | (4,111) | | | | | | 696 | | | | | | 4,165 | | | | | | (3,547) | | | | | | 618 | | |
Total | | | | | 4 | | | | | $ | 18,081 | | | | | $ | (11,546) | | | | | $ | 6,535 | | | | | $ | 19,244 | | | | | $ | (10,536) | | | | | $ | 8,708 | | |
|
Year ended March 31,
|
| |
Future
Amortization |
| |||
2019
|
| | | $ | 1,893 | | |
2020
|
| | | | 1,457 | | |
2021
|
| | | | 1,358 | | |
2022
|
| | | | 677 | | |
2023
|
| | | | 558 | | |
Thereafter
|
| | | | 592 | | |
Total | | | | $ | 6,535 | | |
|
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Customers (trade)
|
| | | $ | 20,838 | | | | | $ | 13,627 | | |
Less: Allowance for doubtful receivables
|
| | | | (1,735) | | | | | | (1,400) | | |
Accounts receivables
|
| | | $ | 19,103 | | | | | $ | 12,227 | | |
|
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Opening balance
|
| | | $ | 1,400 | | | | | $ | 427 | | |
Current period provision
|
| | | | 795 | | | | | | 1,017 | | |
Reversals during current period
|
| | | | (458) | | | | | | (32) | | |
Foreign currency translation adjustments
|
| | | | (2) | | | | | | (12) | | |
Closing balance
|
| | | $ | 1,735 | | | | | $ | 1,400 | | |
|
| | |
As of March 31
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Prepaid expenses
|
| | | $ | 1,951 | | | | | $ | 1,941 | | |
Advance for expenses
|
| | | | 603 | | | | | | 419 | | |
Loans and advance to employees
|
| | | | 206 | | | | | | 117 | | |
Derivative financial instruments
|
| | | | 194 | | | | | | 99 | | |
Advance tax
|
| | | | 4,957 | | | | | | 1,530 | | |
Rent Deposits
|
| | | | 1,250 | | | | | | 1,263 | | |
Service tax
|
| | | | 286 | | | | | | 453 | | |
Other advances and receivables
|
| | | | 47 | | | | | | 139 | | |
Total | | | | $ | 9,494 | | | | | $ | 5,961 | | |
|
Year ended March 31,
|
| |
Amount
|
| |||
2019
|
| | | $ | 209 | | |
Total minimum installment payments of hire purchase
|
| | | $ | 209 | | |
Less: Interest portion
|
| | | | 6 | | |
Present value of net minimum installments of hire purchase
|
| | | $ | 203 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Accrued expenses
|
| | | $ | 4,537 | | | | | $ | 3,826 | | |
Statutory payments
|
| | | | 1,757 | | | | | | 1,423 | | |
Provision for taxation
|
| | | | 4,324 | | | | | | 1,298 | | |
Leave encashment
|
| | | | 3,393 | | | | | | 3,130 | | |
Derivative financial instruments
|
| | | | 127 | | | | | | — | | |
Employee benefits
|
| | | | 7,059 | | | | | | 4,739 | | |
Others
|
| | | | 835 | | | | | | 495 | | |
Accrued expenses and other liabilities
|
| | | $ | 22,032 | | | | | $ | 14,911 | | |
|
| | |
Asset
|
| |
Liability
|
| ||||||||||||||||||
| | |
Noncurrent*
|
| |
Current*
|
| |
Noncurrent*
|
| |
Current*
|
| ||||||||||||
As of March 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Designated as hedging instruments under Cash Flow Hedges | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign exchange forward contracts
|
| | | $ | 46 | | | | | $ | 194 | | | | | $ | 17 | | | | | $ | 127 | | |
Total
|
| | | $ | 46 | | | | | $ | 194 | | | | | $ | 17 | | | | | $ | 127 | | |
As of March 31, 2017 | | | | | | ||||||||||||||||||||
Designated as hedging instruments under Cash Flow Hedges | | | | | | ||||||||||||||||||||
Foreign exchange forward contracts
|
| | | $ | 0 | | | | | $ | 99 | | | | | $ | 10 | | | | | $ | 0 | | |
Total | | | | $ | 0 | | | | | $ | 99 | | | | | $ | 10 | | | | | $ | 0 | | |
|
| | |
Amount of
Gain/(Loss) recognized in AOCI (effective portion) |
| |
Amount of
Gain/(Loss) reclassified from AOCI to Statement of Operations (Revenue ) |
| ||||||
For the year ended March 31, 2018 | | | | | | | | | | | | | |
Foreign exchange forward contracts
|
| | | $ | 294 | | | | | $ | (287) | | |
Total | | | | $ | 294 | | | | | $ | (287) | | |
For the year ended March 31, 2017 | | | | | | | | | | | | | |
Foreign exchange forward contracts
|
| | | $ | 167 | | | | | $ | (254) | | |
Total | | | | $ | 167 | | | | | $ | (254) | | |
For the year ended March 31, 2016 | | | | | | | | | | | | | |
Foreign exchange forward contracts
|
| | | $ | (167) | | | | | $ | (202) | | |
Total | | | | $ | (167) | | | | | $ | (202) | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
Group’s Total Contributions to plan
|
| | | $ | 2,957 | | | | | $ | 2,957 | | | | | $ | 2,957 | | |
| | | | $ | 2,957 | | | | | $ | 2,957 | | | | | $ | 2,957 | | |
|
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Total plan assets
|
| | | $ | 2,921 | | | | | $ | 2,908 | | |
Actuarial present value of accumulated plan benefits
|
| | | | 2,975 | | | | | | 2,449 | | |
Total contributions received by the plan from all employers (for the period
ended) |
| | | | 0.06 | | | | | | 0.06 | | |
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Before
tax |
| |
Tax
effect |
| |
Net of
Tax |
| |
Before
tax |
| |
Tax
effect |
| |
Net of
Tax |
| |
Before
tax |
| |
Tax
effect |
| |
Net of
Tax |
| |||||||||||||||||||||||||||
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Opening balance
|
| | | $ | (345) | | | | | | — | | | | | | (345) | | | | | $ | 222 | | | | | | — | | | | | | 222 | | | | | $ | 1,884 | | | | | | — | | | | | | 1,884 | | |
Change in foreign currency translation adjustments
|
| | | | 638 | | | | | | — | | | | | | 638 | | | | | | (567) | | | | | | — | | | | | | (567) | | | | | | (1,662) | | | | | | — | | | | | | (1,662) | | |
Closing balance
|
| | | $ | 293 | | | | | | — | | | | | | 293 | | | | | $ | (345) | | | | | | — | | | | | | (345) | | | | | $ | 222 | | | | | | — | | | | | | 222 | | |
Unrealized gains/(losses) on cash flow hedges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Opening balance
|
| | | $ | 89 | | | | | | (31) | | | | | | 58 | | | | | $ | 176 | | | | | | (60) | | | | | | 116 | | | | | $ | 545 | | | | | | (185) | | | | | | 360 | | |
Unrealized gains/(losses) on cash flow hedges
|
| | | | 294 | | | | | | (84) | | | | | | 210 | | | | | | 167 | | | | | | (57) | | | | | | 110 | | | | | | (167) | | | | | | 57 | | | | | | (110) | | |
Reclassified to Statement of Operations
|
| | | | (287) | | | | | | 86 | | | | | | (201) | | | | | | (254) | | | | | | 86 | | | | | | (168) | | | | | | (202) | | | | | | 69 | | | | | | (133) | | |
Net change
|
| | | $ | 7 | | | | | | 2 | | | | | | 9 | | | | | $ | (87) | | | | | | 29 | | | | | | (58) | | | | | $ | (369) | | | | | | 126 | | | | | | (243) | | |
Closing balance
|
| | | $ | 96 | | | | | | (29) | | | | | | 67 | | | | | $ | 89 | | | | | | (31) | | | | | | 58 | | | | | $ | 176 | | | | | | (59) | | | | | | 117 | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
United States
|
| | | $ | (12,049) | | | | | $ | (1,508) | | | | | $ | 19.189 | | |
Foreign
|
| | | | 9,103 | | | | | | 683 | | | | | | (23,938) | | |
(Loss)/Income before provision for income taxes
|
| | | $ | (2,946) | | | | | $ | (825) | | | | | $ | (4,749) | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
U.S. Federal and state
|
| | | $ | 109 | | | | | $ | 28 | | | | | $ | 753 | | |
Foreign
|
| | | | 3,188 | | | | | | 270 | | | | | | 238 | | |
Total current
|
| | | $ | 3,297 | | | | | $ | 298 | | | | | $ | 991 | | |
Prior Period – Current Tax: | | | | | | | | | | | | | | | | | | | |
U.S. Federal and state
|
| | | $ | 109 | | | | | $ | 86 | | | | | $ | 49 | | |
Foreign
|
| | | $ | — | | | | | $ | 27 | | | | | $ | — | | |
Total Prior Period – Current Tax
|
| | | $ | 109 | | | | | $ | 113 | | | | | $ | 49 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
U.S. Federal and state
|
| | | $ | (1,321) | | | | | $ | (366) | | | | | $ | (2,052) | | |
Foreign
|
| | | | (30) | | | | | | 52 | | | | | | (175) | | |
Total deferred
|
| | | $ | (1,351) | | | | | $ | (314) | | | | | $ | (2,227) | | |
Provision for income taxes recognized in Statement of Operations
|
| | | $ | 2,055 | | | | | $ | 97 | | | | | $ | (1,187) | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
Net (loss)/income before taxes
|
| | | | (2,946) | | | | | | (825) | | | | | | (4,749) | | |
Computed tax expense
|
| | | | (1,157) | | | | | | (324) | | | | | | (1,866) | | |
Non-deductible expenses | | | | | | | | | | | | | | | | | | | |
– Stock based compensation and Meals & Entertainment
|
| | | | 1,625 | | | | | | 697 | | | | | | 367 | | |
– Others
|
| | | | 70 | | | | | | 66 | | | | | | 97 | | |
Valuation allowance
|
| | | | — | | | | | | (228) | | | | | | — | | |
Tax charge/(credit) of earlier year assessed in current year
|
| | | | 108 | | | | | | 113 | | | | | | 330 | | |
Loss on effective tax rate reduction from 39.3% to 27.3%
|
| | | | 2,399 | | | | | | — | | | | | | — | | |
Net tax credit on R&D and Sec 199 deduction
|
| | | | (361) | | | | | | (306) | | | | | | (169) | | |
Tax exemption
|
| | | | (246) | | | | | | | | | | | | | | |
Difference arising from different tax jurisdiction
|
| | | | (427) | | | | | | (140) | | | | | | (127) | | |
Others
|
| | | | 44 | | | | | | 219 | | | | | | 181 | | |
Total taxes recognized in Statement of Operations
|
| | | | 2,055 | | | | | | 97 | | | | | | (1,187) | | |
|
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Deferred tax assets/(liability): | | | | | | | | | | | | | |
Employee benefits
|
| | | | 1,890 | | | | | | 1,538 | | |
Property and equipment
|
| | | | 206 | | | | | | 38 | | |
Goodwill
|
| | | | 573 | | | | | | 1,120 | | |
Allowance for impairment of accounts receivables
|
| | | | 443 | | | | | | 385 | | |
Carry forwarded income tax losses
|
| | | | 4,687 | | | | | | 4,883 | | |
Tax credit for R&D expenses
|
| | | | 1,295 | | | | | | 951 | | |
Derivative financial instruments
|
| | | | (28) | | | | | | (—) | | |
Others
|
| | | | (819) | | | | | | (1,413) | | |
Gross deferred tax assets
|
| | | | 8,247 | | | | | | 7,502 | | |
Less: Valuation allowance
|
| | | | (1,076) | | | | | | (1,628) | | |
Net deferred tax assets
|
| | | | 7,171 | | | | | | 5,874 | | |
Current portion of deferred tax assets
|
| | | | __ | | | | | | 2,018 | | |
Non-current portion of deferred tax assets
|
| | | | 7,171 | | | | | | 3,856 | | |
| | |
As of March 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Opening balance
|
| | | $ | 441 | | | | | $ | 441 | | | | | $ | 310 | | |
Increase in unrecognized tax benefits – due to tax Positions taken in current period for prior periods
|
| | | | — | | | | | | — | | | | | | 131 | | |
Closing balance
|
| | | $ | 441 | | | | | $ | 441 | | | | | $ | 441 | | |
|
| | |
Year Ended
March 31, 2018 |
| |
Year Ended
March 31, 2017 |
| |
Year Ended
March 31, 2016 |
| |||||||||||||||||||||||||||
Particulars
|
| |
Number
of Options |
| |
Weighted
Average Exercise Price* |
| |
Number
of Option |
| |
Weighted
Average Exercise Price* |
| |
Number
of Options |
| |
Weighted
Average Exercise Price* |
| ||||||||||||||||||
Outstanding at the beginning of the year
|
| | | | 1,624,040 | | | | | $ | 3.23 | | | | | | 2,015,401 | | | | | $ | 3.23 | | | | | | 1,599,015 | | | | | $ | 1.45 | | |
Granted during the year
|
| | | | 151,900 | | | | | | 5.60 | | | | | | 37,500 | | | | | | 7.96 | | | | | | 825,000 | | | | | | 5.82 | | |
Forfeited during the year
|
| | | | (96,453) | | | | | | 6.33 | | | | | | (257,705) | | | | | | 5.57 | | | | | | (147,982) | | | | | | 2.99 | | |
Expired during the year
|
| | | | (9,594) | | | | | | 3.00 | | | | | | (18,145) | | | | | | 2.79 | | | | | | (19,514) | | | | | | 3.37 | | |
Exercised during the year
|
| | | | (157,102) | | | | | | 1.67 | | | | | | (153,011) | | | | | | 1.86 | | | | | | (130,522) | | | | | | 1.75 | | |
Transfer adjustment
|
| | | | (—) | | | | | | — | | | | | | (—) | | | | | | — | | | | | | (110,596) | | | | | | 1.14 | | |
Outstanding at the end of the year
|
| | | $ | 1,512,791 | | | | | $ | 3.38 | | | | | $ | 1,624,040 | | | | | $ | 3.06 | | | | | $ | 2,015,401 | | | | | $ | 3.23 | | |
Exercisable at the end of the year
|
| | | | 942,450 | | | | | $ | 2.69 | | | | | | 807,695 | | | | | $ | 2.18 | | | | | | 560,417 | | | | | $ | 1.51 | | |
| | |
As of March 31,
|
| ||||||
Variables (range)
|
| |
2018
|
| |
2017
|
| |
2016
|
|
Expected term of share options
|
| |
6 Years
|
| |
6 Years
|
| |
6 Years
|
|
Risk-free interest rates
|
| |
6.70.%
|
| |
7.29%
|
| |
7.61%
|
|
Expected volatility
|
| |
48.97%
|
| |
51.16%
|
| |
49.17%
|
|
Expected dividend yield
|
| |
0%
|
| |
0%
|
| |
0%
|
|
Exercise Price Range*
|
| |
Number of
shares arising out of options |
| |
Wtd. Avg.
Exercise Price* |
| |
Wtd. Avg.
remaining Contractual life |
| |||||||||
$0.1 – $3
|
| | | | 790,367 | | | | | | 1.45 | | | | | | 6.59 | | |
$3.1 – $6
|
| | | | 621,684 | | | | | | 5.08 | | | | | | 8.91 | | |
$6.1 – $9
|
| | | | 100,740 | | | | | | 8.10 | | | | | | 8.80 | | |
Total | | | | | 1,512,791 | | | | | | 3.38 | | | | | | 7.69 | | |
|
Exercise Price range*
|
| |
Number of
shares arising out of options |
| |
Wtd. Avg.
Exercise Price* |
| |
Wtd. Avg.
remaining Contractual life |
| | | | | |||||||||||||||||
$0.1 – $3
|
| | | | 667,141 | | | | | | 1.44 | | | | | | 6.09 | | | | | | | ||||||||
$3.1 – $6
|
| | | | 215,559 | | | | | | 5.15 | | | | | | 8.40 | | | | | | | ||||||||
$6.1 – $9
|
| | | | 59,750 | | | | | | 7.75 | | | | | | 8.77 | | | | | | | ||||||||
Total | | | | | 942,450 | | | | | $ | 2.69 | | | | | | 6.94 | | | | | | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
2018
|
| |
2017
|
|
Expected volatility
|
| |
41% – 50%
|
| |
41% – 50%
|
|
Weighted-average volatility
|
| |
41%
|
| |
41%
|
|
Expected dividends
|
| |
0
|
| |
0
|
|
Expected term (in years)
|
| |
3 – 5 Years
|
| |
3 – 5 Years
|
|
Risk-free interest rate
|
| |
0.46
|
| |
0.46
|
|
| | |
Shares
|
| |
Exercise
Price Per Share |
| |
Weighted-Average
Remaining Contractual Life |
| |
Weighted-Average
Exercise Price |
| ||||||||||||
Balance, April 1, 2015
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | |
Granted
|
| | | | 2,279,882 | | | | | | 4.81 – 7.72 | | | | | | 9.07 Years | | | | | | 5.24 | | |
Canceled
|
| | | | (100,497) | | | | | | 4.81 – 6.93 | | | | | | | | | | | | 4.95 | | |
Balance, April 1, 2016
|
| | | | 2,179,385 | | | | | $ | 4.81 – 7.72 | | | | | | 9.07 Years | | | | | $ | 5.25 | | |
Granted
|
| | | | 860,331 | | | | | | 4.79 – 6.22 | | | | | | 9.41 Years | | | | | | 5.56 | | |
Exercised
|
| | | | (2,083) | | | | | | 4.92 | | | | | | | | | | | | 4.92 | | |
Canceled
|
| | | | (168,991) | | | | | | 4.81 – 7.53 | | | | | | | | | | | | 5.37 | | |
Balance, March 31, 2017
|
| | | | 2,868,642 | | | | | $ | 4.79 – 7.72 | | | | | | 8.91 Years | | | | | $ | 5.34 | | |
Granted
|
| | | | 715,000 | | | | | | 4.85 – 5.64 | | | | | | 8.77 Years | | | | | | 5.01 | | |
Exercised
|
| | | | (51,249) | | | | | | 4.92 – 5.05 | | | | | | | | | | | | 4.94 | | |
Canceled
|
| | | | (254,250) | | | | | | 4.87 – 6.22 | | | | | | | | | | | | 5.38 | | |
Balance, March 31, 2018
|
| | | | 3,278,143 | | | | | $ | 4.79 – 7.72 | | | | | | 7.69 Years | | | | | $ | 5.27 | | |
|
Number
|
| |
Weighted-Average
Granted |
| |
Weighted-Average
Exercise Price |
| |
Fair Value
|
| |||||||||
Exercise Price at Stock Price
|
| | | | 715,000 | | | | | $ | 5.01 | | | | | $ | 2.21 | | |
|
| | |
Number
Granted |
| |
Weighted-Average
Exercise Price |
| |
Weighted-Average
Fair Value |
| |||||||||
Exercise Price at Stock Price
|
| | | | 860,331 | | | | | $ | 5.56 | | | | | $ | 2.25 | | |
|
| | |
Number of
Exercisable Options |
| |
Weighted-Average
Exercise Price |
| ||||||
March 31, 2018
|
| | | | 1,200,212 | | | | | $ | 5.45 | | |
March 31, 2017
|
| | | | 627,675 | | | | | $ | 5.70 | | |
| | |
Outstanding Stock Options
|
| |
Exercisable Stock Options
|
| |||||||||||||||||||||
Range of
Exercise Prices |
| |
Shares
|
| |
Weighted-Average
Remaining Contractual Life |
| |
Weighted-Average
Exercise Price |
| |
Shares
|
| |
Weighted-Average
Exercise Price |
| ||||||||||||
$4.79 – $6.22
|
| | | | 3,122,327 | | | |
7.9 Years
|
| | | $ | 5.15 | | | | | | 1,044,396 | | | | | $ | 5.13 | | |
$7.53 – $7.72
|
| | | | 155,816 | | | |
3.9 Years
|
| | | $ | 7.64 | | | | | | 155,816 | | | | | $ | 7.64 | | |
| | |
Outstanding
and Exercisable Warrants |
| |
Exercise
Price Per Warrant |
| |
Weighted-Average
Remaining Contractual Life |
| |
Weighted-Average
Exercise Price |
| ||||||||||||
Balance, April 1, 2015
|
| | | | — | | | | | | | | | | | | | | | | | | — | | |
Granted
|
| | | | 334,064 | | | | | | 6.84 – 7.00 | | | | | | 1.7 | | | | | | 6.85 | | |
Balance, March 31, 2016
|
| | | | 334,064 | | | | | | | | | | | | | | | | | $ | 6.85 | | |
Granted
|
| | | | — | | | | | | | | | | | | | | | | | | — | | |
Balance, March 31, 2017
|
| | | | 334,064 | | | | | | | | | | | | | | | | | $ | 6.85 | | |
Expired
|
| | | | (309,064) | | | | | | | | | | | | | | | | | | 6.84 | | |
Balance, March 31, 2018
|
| | | | 25,000 | | | | | | | | | | | | | | | | | $ | 7.00 | | |
|
| | |
Number of
Exercisable Warrants |
| |
Weighted-Average
Exercise Price |
| ||||||
March 31, 2018
|
| | | | 25,000 | | | | | $ | 7.00 | | |
March 31, 2017
|
| | | | 334,064 | | | | | $ | 6.85 | | |
| | |
Year Ended
March 31, 2018 |
| |
Year Ended
March 31, 2017 |
| |
Year Ended
March 31, 2016 |
| |||||||||
Cost of revenue
|
| | | $ | 639 | | | | | $ | 360 | | | | | $ | 148 | | |
Research and development expenses
|
| | | | 72 | | | | | | 118 | | | | | | 83 | | |
Selling, general and administrative expenses
|
| | | | 2,542 | | | | | | 1,100 | | | | | | 517 | | |
Total | | | | $ | 3,253 | | | | | $ | 1,578 | | | | | $ | 748 | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
(Loss) on derivative instruments not designated as hedges and ineffective portion of derivative instruments designated as hedges
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Foreign exchange gain
|
| | | | 81 | | | | | | (108) | | | | | | 122 | | |
Others
|
| | | | (7) | | | | | | 93 | | | | | | 167 | | |
Other income/(expenses)
|
| | | $ | 74 | | | | | $ | (15) | | | | | $ | 289 | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
Net income/(Loss)
|
| | | $ | (5,001) | | | | | $ | (922) | | | | | $ | (3,562) | | |
Basic weighted average outstanding equity shares
|
| | | | 36,540,199 | | | | | | 36,477,774 | | | | | | 35,055,000 | | |
Adjustment for dilutive potential common stock Options under Majesco 2015 Equity Plan Dilutive weighted average outstanding equity shares
|
| | | | 36,540,199 | | | | | | 36,477,774 | | | | | | 35,055,000 | | |
Earnings per share | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.14) | | | | | $ | (0.02) | | | | | $ | (0.10) | | |
Diluted
|
| | | $ | (0.14) | | | | | $ | (0.02) | | | | | $ | (0.10) | | |
| | |
As of
March 31, 2018 |
| |
As of
March 31, 2017 |
| ||||||
Net reimbursable expenses receivable/(payable) to Majesco Limited or Mastek Limited
|
| | | $ | 98 | | | | | $ | (622) | | |
| | |
As of
March 31, 2018 |
| |
As of
March 31, 2017 |
| ||||||
Security deposits paid to Majesco Limited by MSSIPL for use of Mahape
premises |
| | | $ | 644 | | | | | $ | 648 | | |
Security deposits paid to Mastek Ltd. by MSSIPL for use of Pune premises
|
| | | $ | 202 | | | | | $ | 224 | | |
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 13, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||
USA
|
| | | $ | 108,142 | | | | | $ | 107,077 | | | | | $ | 98,209 | | |
UK
|
| | | | 6,651 | | | | | | 8,167 | | | | | | 8,935 | | |
Canada
|
| | | | 1,203 | | | | | | 1,748 | | | | | | 2,175 | | |
Malaysia
|
| | | | 5,248 | | | | | | 3,625 | | | | | | 3,672 | | |
Singapore
|
| | | | 379 | | | | | | 59 | | | | | | 73 | | |
India
|
| | | | 1,362 | | | | | | 1,092 | | | | | | 238 | | |
| | | | $ | 122,985 | | | | | $ | 121,768 | | | | | $ | 113,302 | | |
|
| | |
As of March 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
USA
|
| | | $ | 1,195 | | | | | $ | 1,812 | | |
India
|
| | | | 1,332 | | | | | | 1,835 | | |
United Kingdom
|
| | | | 7 | | | | | | 11 | | |
Malaysia
|
| | | | 205 | | | | | | 1 | | |
Canada
|
| | | | 16 | | | | | | — | | |
| | | | $ | 2,755 | | | | | $ | 3,659 | | |
|
| | |
Year ended
March 31, 2018 |
| |
Year ended
March 31, 2017 |
| |
Year ended
March 31, 2016 |
| |||||||||||||||||||||||||||
| | |
Amount
|
| |
% of
combined revenue |
| |
Amount
|
| |
% of
combined revenue |
| |
Amount
|
| |
% of
combined revenue |
| ||||||||||||||||||
Customer A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 11,070 | | | | | | 9.0% | | | | | $ | 9,106 | | | | | | 7.5% | | | | | $ | 11,540 | | | | | | 10.2% | | |
Accounts receivables and unbilled accounts receivable
|
| | | $ | 5,240 | | | | | | 18.0% | | | | | $ | 697 | | | | | | 3.4% | | | | | $ | 4,295 | | | | | | 14.4% | | |
Customer B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 6,623 | | | | | | 5.4% | | | | | $ | 6,511 | | | | | | 5.3% | | | | | $ | 6,166 | | | | | | 5.4% | | |
Accounts receivables and unbilled accounts receivable
|
| | | $ | 1,000 | | | | | | 3.4% | | | | | $ | 243 | | | | | | 1.2% | | | | | $ | 923 | | | | | | 3.1% | | |
Year ended March 31,
|
| |
Amount
|
| |||
2019
|
| | | | 3,166 | | |
2020
|
| | | | 3,233 | | |
2021
|
| | | | 760 | | |
2022
|
| | | | 289 | | |
2023
|
| | | | 291 | | |
Beyond 5 years
|
| | | | 437 | | |
Total minimum lease payments
|
| | | $ | 8,176 | | |
|
|
Common stock
|
| | | $ | 12 | | |
|
Additional paid-in capital
|
| | | $ | 29,708 | | |
|
Total consideration
|
| | | $ | 29,720 | | |
|
| | |
Amount
|
| |||
Cash
|
| | | $ | 2,990 | | |
Accounts receivable
|
| | | | 1,592 | | |
Prepaid expenses and other current assets
|
| | | | 629 | | |
Property, plant and equipment
|
| | | | 454 | | |
Other assets
|
| | | | 148 | | |
Customer contracts
|
| | | | 2,410 | | |
Customer relationships
|
| | | | 4,460 | | |
Technology
|
| | | | 3,110 | | |
Deferred tax asset on NOL
|
| | | | 459 | | |
Accounts payable
|
| | | | (1,120) | | |
Accrued expenses
|
| | | | (623) | | |
Deferred revenue
|
| | | | (2,515) | | |
Capital lease liability
|
| | | | (294) | | |
Total fair value of assets acquired
|
| | | | 11,700 | | |
Fair value of consideration paid
|
| | | | 29,720 | | |
Goodwill | | | | $ | 18,020 | | |
|
| | |
Amount
|
| |||
Cash
|
| | | $ | 212 | | |
Accounts receivable
|
| | | | 18 | | |
Other assets
|
| | | | 1 | | |
Accrued expenses
|
| | | | (14) | | |
Total fair value of assets acquired
|
| | | | 217 | | |
Fair value of consideration paid
|
| | | | 276 | | |
Goodwill | | | | $ | 59 | | |
|
| | |
As of
March 31, 2018 |
| |
As of
March 31, 2017 |
| ||||||
Opening value
|
| | | $ | 32,275 | | | | | | 32,275 | | |
Addition of goodwill related to acquisition
|
| | | | — | | | | | | — | | |
Changes on account of current fluctuation
|
| | | | 1 | | | | | | 1 | | |
Impairment of Goodwill
|
| | | | (60) | | | | | | (60) | | |
Closing value
|
| | | $ | 32,216 | | | | | | 32,216 | | |
|
| | |
Weighted average
amortization period (in years) |
| |
Amount
assigned |
| |
Residual
value |
| |||||||||
Customer contracts
|
| | | | 3 | | | | | $ | 2,410 | | | | | | — | | |
Customer relationships
|
| | | | 8 | | | | | | 4,460 | | | | | | — | | |
Technology
|
| | | | 6 | | | | | | 3,110 | | | | | | — | | |
Total
|
| | | | 6 | | | | | $ | 9,980 | | | | | | — | | |
|
| | |
(Unaudited) Quarter ended
|
| |||||||||||||||||||||
| | |
June 30, 2017
|
| |
September 30, 2017
|
| |
December 31, 2017
|
| |
March 31, 2018
|
| ||||||||||||
Revenue
|
| | | | 27,922 | | | | | | 30,347 | | | | | | 31,769 | | | | | | 32,947 | | |
Income/(loss) from operations
|
| | | | (2,336) | | | | | | (1,029) | | | | | | 98 | | | | | | 860 | | |
Net Income (loss)
|
| | | | (1,650) | | | | | | (716) | | | | | | (3,069) | | | | | | 434 | | |
Net income/(loss) attributable to Owners of
the Company |
| | | | (1,650) | | | | | | (716) | | | | | | (3,069) | | | | | | 434 | | |
Basic EPS
|
| | | | (0.05) | | | | | | (0.02) | | | | | | (0.08) | | | | | | 0.01 | | |
Diluted EPS
|
| | | | (0.05) | | | | | | (0.02) | | | | | | (0.08) | | | | | | 0.01 | | |
| | |
(Unaudited) Quarter ended
|
| |||||||||||||||||||||
| | |
June 30, 2016
|
| |
September 30, 2016
|
| |
December 31, 2016
|
| |
March 31, 2017
|
| ||||||||||||
Revenue
|
| | | | 32,554 | | | | | | 31,046 | | | | | | 30,012 | | | | | | 28,156 | | |
Income from operations
|
| | | | (435) | | | | | | 271 | | | | | | 192 | | | | | | (267) | | |
Net Income (loss)
|
| | | | (550) | | | | | | 217 | | | | | | 209 | | | | | | (798) | | |
Net income/(loss) attributable to Owners of
the Company |
| | | | (550) | | | | | | 217 | | | | | | 209 | | | | | | (798) | | |
Basic EPS
|
| | | | (0.02) | | | | | | 0.01 | | | | | | 0.01 | | | | | | (0.02) | | |
Diluted EPS
|
| | | | (0.02) | | | | | | 0.01 | | | | | | 0.01 | | | | | | (0.02) | | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Ketan Mehta
Ketan Mehta
|
| |
President and Chief Executive Officer
(Principal Executive Officer) and Director |
| |
June 22, 2018
|
|
|
/s/ Farid Kazani
Farid Kazani
|
| |
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer) |
| |
June 22, 2018
|
|
|
/s/ Arun K. Maheshwari
Arun K. Maheshwari
|
| |
Director
|
| |
June 22, 2018
|
|
|
/s/ Earl Gallegos
Earl Gallegos
|
| |
Director
|
| |
June 22, 2018
|
|
|
Rajesh Hukku
|
| |
Director
|
| |
June 22, 2018
|
|
|
/s/ Steven R. Isaac
Steven R. Isaac
|
| |
Director
|
| |
June 22, 2018
|
|
|
/s/ Atul Kanagat
Atul Kanagat
|
| |
Director
|
| |
June 22, 2018
|
|
|
/s/ Sudhakar Ram
Sudhakar Ram
|
| |
Director
|
| |
June 22, 2018
|
|
|
/s/ Robert P. Restrepo Jr.
Robert P. Restrepo Jr.
|
| |
Director
|
| |
June 22, 2018
|
|
| 101.1 | | | The following materials from Majesco’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 formatted in extensible Business Reporting Language (XBRL): | |
| | | | (i) Consolidated and Combined Balance Sheets as of March 31, 2018 and March 31, 2017; | |
| | | | (ii) Consolidated and Combined Statements of Operations for the fiscal years ended March 31, 2018, March 31, 2017 and March 31, 2016; (iii) Consolidated and Combined Statements of Comprehensive Income for the fiscal years ended March 31, 2018, March 31, 2017 and March 31, 2016; (iv) Consolidated and Combined Statements of Changes in Stockholders’ Equity for the fiscal year ended March 31, 2018, March 31, 2017 and March 31, 2016; | |
| | | | (v) Consolidated and Combined Statements of Cash Flows for the fiscal years ended March 31, 2018, March 31, 2017 and March 31, 2016; and (vi) Notes to Consolidated and Combined Financial Statements | |