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Leases

9 Months Ended

Dec. 31, 2022

Note 14 — Leases

The Company leases a space at a location under a non-cancellable operating lease with a remaining lease term of 1 year, which originally expired in fiscal year 2022 and was renewed for an additional year. On December 22, 2020, the Company acquired CPS which included the assumption of an operating lease for a 55,120 square foot light manufacturing facility located in Addison Illinois, expiring June 30, 2024.

The Company leases several office locations with lease terms that are less than 12 months or are on month-to-month terms. Rent expense for these leases totaled less than $0.1 million and $0.2 million for the three and nine months ended December 31, 2022, respectively. Operating leases with lease terms of greater than 12 months are capitalized as operating lease right-of-use assets and operating lease liabilities in the accompanying condensed consolidated balance sheets. Rent expense for these operating leases totaled $0.2 million during each of the three months ended December 31, 2022 and 2021, respectively. Rent expense for these operating leases totaled $0.4 million and $0.9 million during the nine months ended December 31, 2022, respectively.

Operating lease costs for nine months ended December 31, 2022 and 2021 consisted of the following (in thousands):

	Nine Months Ended December 31,
	2022		2021
Fixed rent cost	$	373	$	679
Short term lease cost		46		217
Total operating lease cost	$	419	$	896

Supplemental balance sheet information related to leases was as follows (in thousands):

Operating leases	December 31, 2022		March 31, 2022
Operating lease right-of-use assets	$	502	$	728

Operating lease liability, current	$	273	$	273
Operating lease liability, noncurrent		242		468
Total operating lease liabilities	$	515	$	741

The operating lease right-of-use assets are included in other assets and operating lease liabilities are included in accounts payable and accrued liabilities and lease liabilities non-current in the accompanying condensed consolidated balance sheets.

Maturities of operating lease liabilities as of December 31, 2022 were as follows (in thousands):

For Years Ending March 31,
2023 (remaining three months)	$	111
2024		320
2025		93
Total lease payments		524
Less: imputed interest		(9	)
Present value of operating lease liabilities	$	515

Significant judgments

Discount rate – the Company’s lease is discounted using the Company’s incremental borrowing rate of 8.5% as the rate implicit in the lease is not readily determinable.

Options – the lease term is the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs.

Lease and non-lease components – Non lease components were considered and determined not to be material.