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Note 11 - Leases

6 Months Ended

Sep. 30, 2023

Note 11 — 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 for the three months ended September 30, 2023 and 2022, respectively. Rent expense was $0.1 million for the six months ended September 30, 2023 and 2022, respectively. Operating leases with lease terms of greater than 12 months are capitalized in operating lease right-of-use assets and operating lease liabilities in the accompanying condensed consolidated balance sheets. Rent expense for these operating leases totaled $0.1 million and $0.2 million during each of the three and six months ended September 30, 2023 and 2022, respectively.

Operating lease costs for the six months ended September 30, 2023 and 2022 consisted of the following (in thousands):

	*Six Months Ended*		*Six Months Ended*
	*September 30,*		*September 30,*
	*2023*		*2022*
Fixed rent cost	$	392	$	312
Short term lease cost		70		27
Total operating lease cost	$	462	$	339

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

	*September 30,*		*March 31,*
Operating leases	*2023*		*2023*
Operating lease right-of-use assets	$	259	$	423

Operating lease liability, current	$	269	$	273
Operating lease liability, noncurrent		-		161
Total operating lease liabilities	$	269	$	434

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

Maturities of operating lease liabilities as of September 30, 2023 were as follows (in thousands):

For Years Ending March 31,
2024 (remaining six months)	$	153
2025		140
Total lease payments		293
Less: imputed interest		(24	)
Present value of operating lease liabilities	$	269

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.