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 Fiscal 2021 and 2020 are approximately $233 thousand and $206 thousand, respectively. The Company also has an operating lease as of March 31, 2021.

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 $122 thousand. The lease contract does not contain any material residual value guarantees or material restrictive covenants. The weighted average remaining lease term for the operating lease is 4.67 year and 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)* Year Ended March 31, 2021 *($)*		*(in thousands)* Year Ended March 31, 2020 *($)*
Operating lease costs		123		10
Short term lease costs		233		206
Total lease costs		356		216

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

	*(in thousands)*		*(in thousands)*
	Year Ended March 31, 2021 ($)		Year Ended March 31, 2020 ($)
Assets
Operating lease asset		488		574
Total lease assets		488		574

Liabilities
Current liabilities:
Accrued liabilities and others (current portion – operating lease liability)		90		89
Noncurrent liabilities:
Operating lease liability (non-current portion – operating lease liability)		405		485
Total lease liability		495		574

Supplemental cash flow and non-cash information related to leases is as follows:	*(in thousands)* Year Ended March 31, 2021 ($)		*(in thousands)* Year Ended March 31, 2020 ($)
Cash paid for amounts included in the measurement of lease liabilities
–Operating cash flows from operating leases		79		10
Right-of-use assets obtained in exchange for operating lease obligations		488		581

As of March 31, 2021, the following table summarizes the maturity of our lease liabilities:

Mar-22	119
Mar-23	122
Mar-24	125
Mar-25	128
Mar-26	87
Less: Present value discount	(86	)
Total Lease liabilities	495