LEASES

6 Months Ended

Sep. 30, 2024

The Company determines whether an arrangement is a lease at inception. The Company has operating leases for office space, office equipment and vehicles. The Company’s leases have remaining lease terms of 1 year to 5 years, some of which include options to extend the lease term for up to 5 years.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately.

Where lease terms are 12-months or less, and meet the criteria for short-term lease classification, no ROU asset and no lease liability are recognized. Lease costs associated with the short-term leases are included in selling, general and administrative expenses on the Company’s condensed consolidated statements of operations.

The components of lease cost are as follows (in thousands):


	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2024		2023		2024


Short-term lease cost	$	119	$	228	$	238	$	435

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands):


	Six Months Ended September 30,
	2023		2024



Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	856	$	1,262
Reduction of right-of-use assets due to MiX Combination (1)	$	—	$	(933)

(1) Subsequent to the MiX Combination, certain leases were terminated or modified due to the consolidation of leased space.

Weighted-average remaining lease term and discount rate for our operating leases are as follows:


	September 30, 2024
Weighted-average remaining lease term - operating leases (in years) (1)	3.28
Weighted-average discount rate	7.6	%

(1) Including expected renewals where appropriate.

Scheduled maturities of operating lease liabilities outstanding as of September 30, 2024 are as follows (in thousands):


October 2024 - March 2025	$	2,331
2026	3,260
2027	2,012
2028	1,319
2029	1,114
Thereafter	1,420
Total lease payments	11,456
Less: Imputed interest	(1,495)
Present value of lease payments	$	9,961