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LEASES

3 Months Ended

Jun. 30, 2021

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 three months ended June 30, 2021 and 2020 are approximately $31 thousand and $63 thousand, respectively. The Company also has four operating leases as of June 30, 2021.

U.S: 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 $120 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 4.42 years 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.

India: The Company renewed three lease agreements for terms between three to four years expiring between 2023 and 2024. The total annual lease expense is approximately $26 thousand. The lease contracts do not contain any material residual value guarantees or material restrictive covenants. The remaining lease term for the operating leases is between 2.7-3.5 years 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* *June 30, 2021* *($)*		*(in thousands)* *Three months ended* *June 30, 2020* *($)*
Operating lease costs		37		31
Short term lease costs		31		63
Variable lease costs		-		-
Total lease costs		68		94

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

	*(in thousands)*		*(in thousands)*
	*As of* *June 30, 2021* *($)*		*As of* *March 31, 2021* *($)*
Assets
Operating lease asset		538		488
Total lease assets		538		488

Liabilities
Current liabilities:
Accrued liabilities and others (current portion – operating lease liability)		114		90
Noncurrent liabilities:
Operating lease liability (non-current portion – operating lease liability)		433		405
Total lease liability		547		495

	*(in thousands)* *As of* *June 30, 2021* *($)*
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		27
Right-of-use assets obtained in exchange for operating lease obligations		538

As of June 30, 2021, the following table summarizes the maturity of our lease liabilities:


Jun-22	145
Jun-23	150
Jun-24	150
Jun-25	132
Jun-26	54
Less: Present value discount	(84	)
Total lease liabilities	547