Note 9 - Leases

9 Months Ended

Dec. 31, 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 six to sixty 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, 2023 to indicate that a reassessment or re-measurement of the Company’s existing leases was required.

As of December 31, 2023, the Company’s current operating lease liabilities and finance lease liabilities were $128,000 and $1,000, respectively and its non-current operating lease liabilities and finance lease liabilities were $208,000 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 December 31, 2023 was $327,000 and $1,000, respectively.

As disclosed in "Note 3 - Related Party Transactions", the Company's Hong Kong office space is being leased from Vigers Appraisal and Consulting Ltd (“VACL”), which is a company related to the Company’s Chairman of the Board. As of December 31, 2023, the current operating liability of this lease is approximately $98,000 and its non-current liability is nil. Its right-of-use asset value is approximately $97,000, as of December 31, 2023.

In  January 2023, the Company relocated its corporate headquarters to a temporary office space, while its new landlord built out the agreed-upon space. The Company was not obligated to pay rent while it resided in the temporary office space. The Company took possession of the completed space on July 1, 2023, which became the commencement date of a 66 month lease. The right-of-use asset value of this operating lease is approximately $248,000.

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,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
Lease cost
Operating lease cost	$	52	$	60	$	141	$	185
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		43		62		123		187
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		—		—		248		—
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, 2023			As of December 31, 2022
Operating leases		44.7			18.8
Finance leases		5.2			17.2
Weighted average discount rate
Operating leases		9.58	%		7.50	%
Finance leases		7.50	%		7.50	%

As of  December 31, 2023 the maturities of lease liabilities were as follows:

(in thousands)	Operating Leases			Finance Leases
2024	$	52		$	1
2025		116			—
2026		54			—
2027		66			—
Thereafter		52			—
Total lease payments	$	340		$	1
Less: Imputed interest		(4	)		—
Total	$	336		$	1