NOTE 9 – LEASES

The Company has short-term leases primarily consisting of spaces with the remaining lease term being less than or equal to 12 months. The total short-term lease expense and cash paid for the six months ended September 30, 2020 and 2019 are approximately $129 thousand and $80 thousand, respectively. The Company also has an operating lease as of September 30, 2020.

In November 2019, the Company entered into an office lease agreement with a lease term of less than 12 months. This lease was amended in March 2020, with a new lease term from March 1, 2020 to November 30, 2025. The annual lease expense is approximately $127 thousand. The lease contract does not contain any material residual value guarantees or material restrictive covenants. The remaining lease term for the operating lease is 5.17 year with a discount rate of 7%. The lease does not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate.

	(in thousands) Three months ended September 30, 2020 ($)		(in thousands) Six months ended September 30, 2020 ($)
Operating lease costs		31		62
Short term lease costs		67		129
Variable lease costs		-		-
Total lease costs		98		191

Right of use assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows:

	(in thousands)
	As of September 30, 2020 ($)
Assets
Operating lease asset		532
Total lease assets		532

Liabilities
Current liabilities:
Accrued liabilities and others (current portion – operating lease liability)		86
Noncurrent liabilities:
Operating lease liability (non-current portion – operating lease liability)		450
Total lease liability		536

	(in thousands) As of September 30, 2020 ($)
Supplemental cash flow and non-cash information related to leases is as follows:
Cash paid for amounts included in the measurement of lease liabilities
– Operating cash flows from operating leases		19
Right-of-use assets obtained in exchange for operating lease obligations		539

As of September 30, 2020, the following table summarizes the maturity of our lease liabilities:

Sep-21	118
Sep-22	120
Sep-23	123
Sep-24	126
Sep-25	130
Sep-26	22
Less: Present value discount	(103	)
Total Lease liabilities	536