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LEASES

6 Months Ended

Sep. 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 six months ended September 30, 2022, and 2021 are approximately $89 thousand and $82 thousand, respectively. The Company also has four operating leases as of September 30, 2022.

America: The Company has entered into a lease agreement for approximately five years, expiring in 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 3.2 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 has three lease agreements for 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* *September 30, 2022* *($)*		*(in thousands)* *Three months* *ended* *September 30, 2021* *($)*		*(in thousands)* *Six months ended* *September 30, 2022* *($)*		*(in thousands)* *Six months ended* *September 30, 2021* *($)*
Operating lease costs		37		38		74		75
Short term lease costs		44		52		89		82
Total lease costs		81		90		163		157

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* *September 30, 2022* *($)*		*As of* *March 31, 2022* *($)*
Assets
Operating lease asset		387		450
Total lease assets		387		450

Liabilities
Current liabilities:
Accrued liabilities and others (current portion-operating lease liability)		128		123
Noncurrent liabilities:
Operating lease liability (non-current portion-operating lease liability)		275		341
Total lease liability		403		464

	*(in thousands)* *As of* *September 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		54
Right-of-use assets obtained in exchange for operating lease obligations		387

As of September 30, 2022, the following table summarizes the maturity of our lease liabilities:
Sep-23	149
Sep-24	146
Sep-25	131
Sep-26	22
Sep-27	-
Less: Present value discount	(45	)
Total lease liabilities	403