Leases

3 Months Ended

Jun. 30, 2022

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 seven months to three years. 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, 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 June 30, 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 June 30, 2022, the Company’s current operating and finance lease liabilities were $189,000 and $1,000, respectively and its non-current operating and finance lease liabilities were $167,000 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 June 30, 2022 was $350,000 and $2,000, respectively.

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,
	2022		2021
	(in thousands)
Lease cost
Operating lease cost	$	63	$	64
Finance lease cost		—		—
Amortization of right-of-use assets		—		—
Interest on lease liabilities		—		—
Variable lease costs		—		—
Total lease cost		63		64

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		63		67
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, 2022			As of June 30, 2021
Operating leases		22.5			16.9
Finance leases		23.2			35.2

Weighted average discount rate
Operating leases		7.50	%		7.50	%
Finance leases		7.50	%		7.50	%

As of June 30, 2022 the maturities of lease liabilities were as follows:
(in thousands)	Operating Leases			Finance Leases

2023	$	170		$	1
2024		149			1
2025		62			1
2026		—			—
Thereafter		—			—
Total lease payments	$	381		$	3
Less: Imputed interest		(25	)		(1	)
Total	$	356		$	2