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LEASES

12 Months Ended

Mar. 31, 2023

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 2023 and 2022 are approximately $178 thousand. The Company also has four operating leases as of March 31, 2023.

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 $123 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 2.7 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 $25 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 - 1.7 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)* Year Ended March 31, 2023 ($)		*(in thousands)* Year Ended March 31, 2022 ($)
Operating lease costs		148		149
Short term lease costs		178		178
Total lease costs		326		327

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, 2023 ($)		Year Ended March 31, 2022 ($)
Assets
Operating lease asset		326		450
Total lease assets		326		450

Liabilities
Current liabilities:
Accrued liabilities and others (current portion – operating lease liability)		133		123
Noncurrent liabilities:
Operating lease liability (non-current portion – operating lease liability)		207		341
Total lease liability		340		464

Supplemental cash flow and non-cash information related to leases is as follows:	*(in thousands)* Year Ended March 31, 2023 ($)		*(in thousands)* Year Ended March 31, 2022 ($)
Cash paid for amounts included in the measurement of lease liabilities
–Operating cash flows from operating leases		118		109
Right-of-use assets obtained in exchange for operating lease obligations		326		450

As of March 31, 2023, the following table summarizes the maturity of our lease liabilities:

Mar-24	151
Mar-25	133
Mar-26	87
Mar-27	-
Less: Present value discount	(31	)
Total Lease liabilities	340