Debt

12 Months Ended

Mar. 31, 2023

Notes Payable [Abstract]

DEBT

5. DEBT

Line of Credit Facility

The Company is party to a Loan, Guaranty, and Security Agreement with East West Bank ("EWB") providing for a revolving line of credit (the "Line of Credit Facility") of $5.0 million, guaranteed by substantially all of our material subsidiaries and secured by substantially all of our and such subsidiaries' assets. The Line of Credit bears an interest rate equal to 1.5% above the prime rate, and was 9.0% as of March 31, 2023. The Line of Credit expires on September 15, 2023 with a one-year extension available at EWB's discretion. As of March 31, 2023, a balance of $5.0 million was outstanding on the line of the Credit Facility. Under the Line of Credit Facility, the Company is subject to certain financial and nonfinancial covenants which require the Company to maintain certain metrics and ratios, maintain certain minimum cash on hand, and to report financial information to our lender on a periodic basis. For the year ended March 31, 2023, the Company had interest expense of $0.2 million related to the Line of Credit Facility. On June 28, 2023, the Company was notified in writing by EWB that it intends to extend the maturity date of the Line of Credit Facility to September 15, 2024, subject to definitive documentation.

PPP Loan

On April 15, 2020, the Company received $2.2 million from EWB, the Company’s existing lender, pursuant to the Paycheck Protection Program (the “PPP Loan”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company used all proceeds from the PPP Loan to retain employees, maintain payroll and make lease and utility payments to support business continuity throughout the COVID-19 pandemic, which amounts were intended to be eligible for forgiveness, subject to the provisions of the CARES Act, and could be subject to repayment. The PPP Loan would have matured on April 10, 2022 and accrued interest at 1% per annum. The interest accrued during the initial six-month period would have been due and payable, together with the principal, on the PPP maturity date. On July 7, 2021, the Company received notification from EWB that the U.S. Small Business Administration had approved the Company’s PPP Loan forgiveness application for the entire PPP Loan amount and accrued interest effective June 30, 2021. For the year ended March 31, 2022, the Company recognized a gain on extinguishment of note payable of $2.2 million in the Consolidated Statement of Operations for the forgiveness of PPP loan principal and interest.