Note 9 - Leases

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Lessee Lease Disclosure [Text Block]

NOTE 9 — LEASES

The Company leases office space in the U.S. and in Hong Kong as well as a copier in the U.S. These leases have remaining non-cancellable lease terms of four months to twenty-two months. The Company has elected not to separate lease and non-lease components for all leased assets. The Company did not identify any events or conditions during the quarter ended December 31, 2022 to indicate that a reassessment or re-measurement of the Company’s existing leases was required. There were also no impairment indicators identified during the quarter ended December 31, 2022 that required an impairment test for the Company’s right-of-use assets or other long-lived assets in accordance with ASC topic 360-10, “Impairment and Disposal of Long-Lived Assets”.

As of December 31, 2022, the Company’s current operating lease liabilities and finance lease liabilities were $145,000 and $1,000, respectively and its non-current operating lease liabilities and finance lease liabilities were $98,000 and $1,000, respectively. The Company’s operating and finance lease right-of-use asset balances are presented in non-current assets. The net balance of the Company’s operating and finance lease right-of-use assets as of December 31, 2022 was $244,000 and $2,000, respectively.

In January 2023, the Company relocated its headquarters to a temporary office space. The Company's new landlord has yet to receive the proper permits to build out the agreed-upon space. The commencement date on the new lease will not begin until the Company moves into the agreed-upon space. The Company is not obligated to pay rent while it resides in the temporary office space. Due to the uncertainty of the commencement date, the right-of-use asset and lease liabilities cannot be calculated at this time.

The components of lease costs, which were included in operating expenses in the Company’s condensed consolidated statements of operations, were as follows:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2022		2021		2022		2021
	(in thousands)				(in thousands)
Lease cost
Operating lease cost	$	60	$	64	$	185	$	191
Finance lease cost		—		—		—		—
Amortization of right-of-use assets		—		—		—		—
Interest on lease liabilities		—		—		—		—
Variable lease costs		—		—		—		—
Total lease cost		60		64		185		191
The supplemental cash flow information related to leases are as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		62		63		187		194
Operating cash flows from finance leases		—		—		—		—
Financing cash flows from finance leases		—		—		—		—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		—		403		—		403
Finance leases		—		—		—		—

Information relating to the lease term and discount rate are as follows:

Weighted average remaining lease term (in months)	As of December 31, 2022			As of December 31, 2021
Operating leases		18.8			27.3
Finance leases		17.2			29.2
Weighted average discount rate
Operating leases		7.50	%		7.50	%
Finance leases		7.50	%		7.50	%

As of  December 31, 2022 the maturities of lease liabilities were as follows:

(in thousands)	Operating Leases			Finance Leases
2023	$	46		$	1
2024		149			1
2025		62			—
2026		—			—
Thereafter		—			—
Total lease payments	$	257		$	2
Less: Imputed interest		(14	)		—
Total	$	243		$	2