Note 9 - Leases

3 Months Ended

Jun. 30, 2023

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 twelve to fourteen 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 June 30, 2023 to indicate that a reassessment or re-measurement of the Company’s existing leases was required.

As of June 30, 2023, the Company’s current operating lease liabilities and finance lease liabilities were $142,000 and $1,000, respectively and its non-current operating lease liabilities and finance lease liabilities were $25,000 and nil, 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 June 30, 2023 was $166,000 and $1,000, respectively.

In January 2023, the Company relocated its headquarters to a temporary office space, while its new landlord awaited the proper permits to build out the agreed-upon space. The Company has subsequently moved into the agreed-upon space and the commencement date of the new lease is July 1, 2023.

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 June 30,
	2023		2022
	(in thousands)
Lease cost
Operating lease cost	$	37	$	59
Finance lease cost		—		—
Amortization of right-of-use assets		—		—
Interest on lease liabilities		—		—
Variable lease costs		—		—
Total lease cost		37		59
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		37		59
Operating cash flows from finance leases		—		—
Financing cash flows from finance leases		—		—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		—		—
Finance leases		—		—

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

Weighted average remaining lease term (in months)	As of June 30, 2023			As of June 30, 2022
Operating leases		13.5			22.5
Finance leases		11.2			23.2
Weighted average discount rate
Operating leases		7.50	%		7.50	%
Finance leases		7.50	%		7.50	%

As of  June 30, 2023 the maturities of lease liabilities were as follows:

(in thousands)	Operating Leases			Finance Leases
2024	$	112		$	1
2025		62			—
2026		—			—
2027		—			—
Thereafter		—			—
Total lease payments	$	174		$	1
Less: Imputed interest		(7	)		—
Total	$	167		$	1