LEASES

6 Months Ended

Sep. 30, 2023

NOTE 8 — LEASES

From time to time, Orion leases assets from third parties. Orion also leases certain assets to third parties.

Orion accounts for leases in accordance with ASC 842. Under ASC 842, both finance and operating lease ROU assets and lease liabilities for leases with initial terms in excess of 12 months are recognized at the commencement date based on the present value of lease payments over the lease term. Orion recognizes lease expense for leases with an initial term of 12 months or less, referred to as short term leases, on a straight-line basis over the lease term.

A summary of Orion’s assets leased from third parties follows (dollars in thousands):


	Balance sheet classification	September 30, 2023		March 31, 2023
Assets
Operating lease assets	Other long-term assets	$	2,159	$	2,174
Liabilities
Current liabilities
Operating lease liabilities	Accrued expenses and other	$	948	$	823
Non-current liabilities
Operating lease liabilities	Other long-term liabilities		1,625		1,826
Total lease liabilities		$	2,573	$	2,649

Orion had operating lease costs of $0.7 million and $1.1 million for the three and six months ended September 30, 2023, respectively. Orion had operating lease costs of $0.3 million and $0.6 million for the three and six months ended September 30, 2022, respectively.

The estimated maturity of lease liabilities for each of the next five years is shown below (dollars in thousands):


Maturity of Lease Liabilities	Operating Leases
Fiscal 2024 (period remaining)	$	531
Fiscal 2025		1,083
Fiscal 2026		984
Fiscal 2027		177
Thereafter		—
Total lease payments	$	2,775
Less: Interest		(202	)
Present value of lease liabilities	$	2,573