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LEASES | 12 Months Ended
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Mar. 31, 2022
Leases [Abstract] |
LEASES | LEASESOn March 31, 2022, the Company adopted ASC Topic 842, Leases (ASC 842), using the modified retrospective transition method. The Company elected to apply the package of practical expedients provided under the transition guidance withing ASC 842, and accordingly, did not reassess whether any expired or existing contracts are or contain leases, did not reassess lease classification for expired or existing leases, and did not reassess initial indirect costs for any existing leases. The Company adopted this ASU by applying the new guidance to new and existing leases effective April 1, 2021, with no restatement of comparative periods. Upon adoption, the Company recorded an operating lease right-of-use asset and an operating lease liability on the balance sheet as per table below. In addition, assets under equipment leases previously classified as capital leases within Property and Equipment on the Company’s balance sheet were reclassified to finance lease right-of-use assets upon adoption of the guidance. Right-of-use assets and obligations were recognized based on the present value of remaining lease payments over the lease term. As the Company’s operating lease agreements do not provide an implicit rate or a readily determinable incremental borrowing rate, an estimated incremental borrowing rate was used based on the information available at the adoption date in determining the present value of lease payments. Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the Right-of-Use (“ROU”) asset and interest expense for the outstanding lease liabilities using the discounted rate discussed above.Variable lease costs such as common area costs and other operating costs are expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The adoption of this new guidance did not have a material net impact on the Company’s consolidated statements of operations or consolidated statements of cash flows. Operating Leases The Company has operating leases for its offices and fulfillment centers. Rental expense for operating leases was $5.2 mil lion and $3.3 million for the years ended March 31, 2022 and 2021, respectively. Upon adoption of ASC 842, the Company recognized operating lease right-of-use assets of $29.6 million and operating lease liabilities of $33.9 million. On March 26, 2021, the Company entered into a lease agreement for its fulfillment center in Columbus, Ohio. In accordance with the ASC 842 guidance, the lease is classified as an operating lease. The average monthly cash payment related to the Company’s Columbus, Ohio operating lease is approximately $36,000 per month, and the lease term will expire on July 31, 2026. In connection with the adoption of ASC 842, the Company recorded a right-of-use asset and lease liability related to this lease of $1.4 million and $1.8 million respectively as of March 31, 2022 based on the present value of payments and incremental borrowing rate of 5.5%. On October 29, 2021, the Company entered into a lease agreement for a new office space. In accordance with the ASC 842 guidance, the lease is classified as an operating lease. The new lease commences on April 1, 2022 and includes escalating rent payments and a 198 month term. Rent expense will be recorded on a straight-line basis over the lease term. Future minimum lease payments required under the operating lease are approximately $51.7 million. In connection with the lease agreement the Company executed a letter of credit of approximately $1.9 million. On April 23, 2021, the Company entered into a lease agreement for its fulfillment center in Las Vegas, Nevada. In accordance with the ASC 842 guidance, the lease is classified as an operating lease. The average monthly cash payment related to the Company’s Las Vegas, Nevada operating lease is approximately $205,000 per month, and the lease term will expire on March 31, 2029. In connection with the adoption of ASC 842, the Company recorded a right-of-use asset and lease liability related to this lease of $13.3 million and $14.4 million respectively as of March 31, 2022 based on the present value of payments and incremental borrowing rate of 6.2%. The following schedule represents the components of the Company’s operating and finance lease assets as of March 31, 2022 (in thousands):
Leases |  | Classification |  | March 31, 2022
Assets |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 29,552 |
Finance |  | Property and equipment, net |  | 2,538 |
Liabilities |  |  |  |
Operating lease liabilities (current) |  | Operating lease liabilities, current |  | $ | 5,060 |
Finance lease liabilities (current) |  | Accrued and other current liabilities |  | 642 |
Operating lease liabilities (non-current) |  | Operating lease liabilities |  | $ | 28,847 |
Finance lease liabilities (non-current) |  | Other long-term liabilities |  | 1,896 |
The following schedule represents the components of lease expense for the fiscal year ended March 31, 2022 (in thousands):
|  | March 31, 2022
Finance Lease Costs: |  |
Amortization of right-of-use assets |  | $ | 588 |
Interest on lease liabilities |  | 313 |
Operating lease costs |  | 5,554 |
Sublease income |  | (357) |
Total lease costs |  | $ | 6,098 |
As of March 31, 2022, the Company’s maturity of operating lease liabilities in the years ending up March 31. 2027 and thereafter are as follows (in thousands):
| Finance Leases |  | Operating Leases
2023 | $ | 890 |  |  | $ | 6,963 |
2024 | 890 |  |  | 6,725 |
2025 | 890 |  |  | 6,263 |
2026 | 383 |  |  | 6,437 |
2027 | 9 |  |  | 5,284 |
Thereafter | — |  |  | 9,260 |
Total lease payments | 3,062 |  |  | 40,931 |
Less: imputed interest | (524) |  |  | (7,024) |
Present value of lease liabilities | $ | 2,538 |  |  | $ | 33,907 |
Other operating leases information:
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 4,541 |
Right-of-use assets obtained in exchange for new lease liabilities |  | $ | 33,387 |
Weighted-average remaining term (years) |  | 6.2
Weighted average discount rate |  | 4.6%
Other finance leases information:
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 588 |
Right-of-use assets obtained in exchange for new lease liabilities |  | $ | 3,107 |
Weighted-average remaining term (years) |  | 3.5
Weighted average discount rate |  | 11.0%
In accordance with ASC 840, the following is a schedule by years of future minimum lease payments required under the operating leases that have initial or noncancelable lease terms in excess of one year as of March 31, 2021.
Fiscal year ending March 31: |
2022 | $ | 4,113 |
2023 | 4,559 |
2024 | 4,269 |
2025 | 3,798 |
2026 | 3,899 |
Thereafter | 6,459 |
Total minimum lease payments | $ | 27,097 |
In accordance with ASC 840, rental expense for operating leases was $3.5 million for the fiscal year ended March 31, 2021.
LEASES | LEASESOn March 31, 2022, the Company adopted ASC Topic 842, Leases (ASC 842), using the modified retrospective transition method. The Company elected to apply the package of practical expedients provided under the transition guidance withing ASC 842, and accordingly, did not reassess whether any expired or existing contracts are or contain leases, did not reassess lease classification for expired or existing leases, and did not reassess initial indirect costs for any existing leases. The Company adopted this ASU by applying the new guidance to new and existing leases effective April 1, 2021, with no restatement of comparative periods. Upon adoption, the Company recorded an operating lease right-of-use asset and an operating lease liability on the balance sheet as per table below. In addition, assets under equipment leases previously classified as capital leases within Property and Equipment on the Company’s balance sheet were reclassified to finance lease right-of-use assets upon adoption of the guidance. Right-of-use assets and obligations were recognized based on the present value of remaining lease payments over the lease term. As the Company’s operating lease agreements do not provide an implicit rate or a readily determinable incremental borrowing rate, an estimated incremental borrowing rate was used based on the information available at the adoption date in determining the present value of lease payments. Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the Right-of-Use (“ROU”) asset and interest expense for the outstanding lease liabilities using the discounted rate discussed above.Variable lease costs such as common area costs and other operating costs are expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The adoption of this new guidance did not have a material net impact on the Company’s consolidated statements of operations or consolidated statements of cash flows. Operating Leases The Company has operating leases for its offices and fulfillment centers. Rental expense for operating leases was $5.2 mil lion and $3.3 million for the years ended March 31, 2022 and 2021, respectively. Upon adoption of ASC 842, the Company recognized operating lease right-of-use assets of $29.6 million and operating lease liabilities of $33.9 million. On March 26, 2021, the Company entered into a lease agreement for its fulfillment center in Columbus, Ohio. In accordance with the ASC 842 guidance, the lease is classified as an operating lease. The average monthly cash payment related to the Company’s Columbus, Ohio operating lease is approximately $36,000 per month, and the lease term will expire on July 31, 2026. In connection with the adoption of ASC 842, the Company recorded a right-of-use asset and lease liability related to this lease of $1.4 million and $1.8 million respectively as of March 31, 2022 based on the present value of payments and incremental borrowing rate of 5.5%. On October 29, 2021, the Company entered into a lease agreement for a new office space. In accordance with the ASC 842 guidance, the lease is classified as an operating lease. The new lease commences on April 1, 2022 and includes escalating rent payments and a 198 month term. Rent expense will be recorded on a straight-line basis over the lease term. Future minimum lease payments required under the operating lease are approximately $51.7 million. In connection with the lease agreement the Company executed a letter of credit of approximately $1.9 million. On April 23, 2021, the Company entered into a lease agreement for its fulfillment center in Las Vegas, Nevada. In accordance with the ASC 842 guidance, the lease is classified as an operating lease. The average monthly cash payment related to the Company’s Las Vegas, Nevada operating lease is approximately $205,000 per month, and the lease term will expire on March 31, 2029. In connection with the adoption of ASC 842, the Company recorded a right-of-use asset and lease liability related to this lease of $13.3 million and $14.4 million respectively as of March 31, 2022 based on the present value of payments and incremental borrowing rate of 6.2%. The following schedule represents the components of the Company’s operating and finance lease assets as of March 31, 2022 (in thousands):
Leases |  | Classification |  | March 31, 2022
Assets |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 29,552 |
Finance |  | Property and equipment, net |  | 2,538 |
Liabilities |  |  |  |
Operating lease liabilities (current) |  | Operating lease liabilities, current |  | $ | 5,060 |
Finance lease liabilities (current) |  | Accrued and other current liabilities |  | 642 |
Operating lease liabilities (non-current) |  | Operating lease liabilities |  | $ | 28,847 |
Finance lease liabilities (non-current) |  | Other long-term liabilities |  | 1,896 |
The following schedule represents the components of lease expense for the fiscal year ended March 31, 2022 (in thousands):
|  | March 31, 2022
Finance Lease Costs: |  |
Amortization of right-of-use assets |  | $ | 588 |
Interest on lease liabilities |  | 313 |
Operating lease costs |  | 5,554 |
Sublease income |  | (357) |
Total lease costs |  | $ | 6,098 |
As of March 31, 2022, the Company’s maturity of operating lease liabilities in the years ending up March 31. 2027 and thereafter are as follows (in thousands):
| Finance Leases |  | Operating Leases
2023 | $ | 890 |  |  | $ | 6,963 |
2024 | 890 |  |  | 6,725 |
2025 | 890 |  |  | 6,263 |
2026 | 383 |  |  | 6,437 |
2027 | 9 |  |  | 5,284 |
Thereafter | — |  |  | 9,260 |
Total lease payments | 3,062 |  |  | 40,931 |
Less: imputed interest | (524) |  |  | (7,024) |
Present value of lease liabilities | $ | 2,538 |  |  | $ | 33,907 |
Other operating leases information:
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 4,541 |
Right-of-use assets obtained in exchange for new lease liabilities |  | $ | 33,387 |
Weighted-average remaining term (years) |  | 6.2
Weighted average discount rate |  | 4.6%
Other finance leases information:
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 588 |
Right-of-use assets obtained in exchange for new lease liabilities |  | $ | 3,107 |
Weighted-average remaining term (years) |  | 3.5
Weighted average discount rate |  | 11.0%
In accordance with ASC 840, the following is a schedule by years of future minimum lease payments required under the operating leases that have initial or noncancelable lease terms in excess of one year as of March 31, 2021.
Fiscal year ending March 31: |
2022 | $ | 4,113 |
2023 | 4,559 |
2024 | 4,269 |
2025 | 3,798 |
2026 | 3,899 |
Thereafter | 6,459 |
Total minimum lease payments | $ | 27,097 |
In accordance with ASC 840, rental expense for operating leases was $3.5 million for the fiscal year ended March 31, 2021.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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