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LEASES

3 Months Ended

Jun. 30, 2022

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, 2022, and 2021 are approximately $45 thousand and $31 thousand, respectively. The Company also has four operating leases as of June 30, 2022.

America: In November 2019, the Company entered into a 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 remaining lease term for the operating lease is 3.4 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.

Asia: 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 $6 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 1.75-2.5 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, 2022* *($)*		*(in thousands)* *Three months ended* *June 30, 2021* *($)*
Operating lease costs		37		37
Short term lease costs		45		31
Variable lease costs		-		-
Total lease costs		82		68

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, 2022* *($)*		*As of* *March 31, 2022* *($)*
Assets
Operating lease asset		419		450
Total lease assets		419		450

Liabilities
Current liabilities:
Accrued liabilities and others (current portion – operating lease liability)		126		123
Noncurrent liabilities:
Operating lease liability (non-current portion – operating lease liability)		308		341
Total lease liability		434		464

	*(in thousands)* *As of* *June 30, 2022* *($)*
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		26
Right-of-use assets obtained in exchange for operating lease obligations		419

As of June 30, 2022, the following table summarizes the maturity of our lease liabilities:


June-23	149
June-24	149
June-25	133
June-26	87
June-27	-
Less: Present value discount	(84	)
Total lease liabilities	434