Leases

6 Months Ended

Sep. 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 September 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. As most of the Company’s leases do not provide an explicit rate, the Company utilizes a 6.0% discount rate (based on the rate provided for under the LSA with Nexperia) at the commencement date to calculate the present value of lease payments.

In determining whether a contract contains a lease, the Company assesses whether an arrangement includes a lease at contract inception. Operating lease ROU assets and liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. The opening balances for operating lease ROU assets and lease liabilities were $3.5 million and $3.5 million as of the adoption date of April 1, 2022. The outstanding balances of ROU assets and lease liabilities were $3.3 million and $3.3 million, respectively, as of September 30, 2022. The Company did not have any finance leases at September 30, 2022.

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


	September 30, 2022
Operating lease ROU assets	$	3,312

Operating lease liabilities	$	532
Operating lease liabilities, net of current portion	2,803
Total operating lease liability	$	3,335

Weighted average remaining lease terms for the Company’s operating leases were 6.4 years and the weighted average discount rate for the Company's operating leases was 6.0 percent as of September 30, 2022. Operating lease expense and short-term lease expense were $188 thousand and $55 thousand, respectively, for the three months ended September 30, 2022 and $373 thousand and $127 thousand, respectively, for the six months ended September 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 $178 thousand and $349 thousand for the three and six months ended September 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	$	358
2024	710
2025	674
2026	659
2027	616
Thereafter	984
Lease payments	4,001
Less: interest	(666)
Present value of lease liability	$	3,335