Leases

3 Months Ended

Jun. 30, 2022

On April 1, 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842), using the optional transition method permitted by ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. See Note 1 - Business and Basis of Presentation.

The Company’s operating leases are real estate leases which are comprised of our headquarters and offices in the United States and internationally with remaining lease terms ranging from 1 to 8 years as of June 30, 2022. Certain lease arrangements contain extension options and, as these extension options are generally considered reasonably certain of exercise, they are included in the lease term. In determining the discount rates, since most of our leases do not provide an implicit rate, we used a 6.0% interest rate (the same rate as provided for under our LSA with Nexperia) at commencement date to calculate the present value of lease payments.

In determining whether a contract contained a lease, we determined whether an arrangement was or included a lease at contract inception. Operating lease ROU assets and liabilities were recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. The opening balances for both our operating lease ROU assets and lease liabilities were $3.5 million as of the adoption date of April 1, 2022 and the outstanding balances were $3.5 million as of June 30, 2022. The Company did not have any finance leases at June 30, 2022.

The following table presents the Company’s operating lease ROU assets and lease liabilities for the period indicated (in thousands):


	June 30, 2022
Operating lease ROU assets	$	3,448

Operating lease liabilities	$	521
Operating lease liabilities, net of current portion	2,941
Total operating lease liability	$	3,462

Weighted average remaining lease terms for the Company’s operating leases were 6.7 years and the weighted average discount rate for the Company's operating leases was 6.0 percent as of June 30, 2022. Operating lease expense and short-term lease expense were $185 thousand and $72 thousand, respectively, for the three months ended June 30, 2022. Cash paid, and included in cash flows from operating activities, for amounts included in the measurement of the lease liability for the Company's operating leases was $171 thousand for the three months ended June 30, 2022.

The following table presents the Company's remaining lease liabilities by maturity for the periods indicated (in thousands):


	Years Ending March 31,
2023	$	536
2024	710
2025	674
2026	659
2027	616
Thereafter	984
Lease payments	4,179
Less: interest	(717)
Present value of lease liability	$	3,462