Leases

12 Months Ended

Mar. 31, 2023

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 2 - Summary of Significant Accounting Policies.

The Company’s operating leases are real estate leases which are comprised of the Company’s headquarters and offices in the United States and internationally with remaining lease terms ranging from one to seven years as of March 31, 2023. 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, respectively, as of the adoption date of April 1, 2022. The Company did not have any finance leases at March 31, 2023.

The following table presents the Company’s ROU assets and lease liabilities as of the date indicated (in thousands):


	March 31, 2023
Operating lease ROU assets	$	3,033

Operating lease liabilities	$	404
Operating lease liabilities, net of current portion	2,670
Total operating lease liability	$	3,074

Weighted average remaining lease terms for the Company’s operating leases were 5.6 years and the weighted average discount rate for the Company's operating leases was 6.0% as of March 31, 2023. Operating lease expense and short-term lease expense were $0.7 million and $0.1 million, respectively, for the year ended March 31, 2023. 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 $0.7 million for the year ended March 31, 2023.

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


	March 31, 2023
2024	710
2025	674
2026	659
2027	616
2028	358
Thereafter	626
Lease payments	3,643
Less: interest	(569)
Present value of lease liability	$	3,074

As previously reported in the Company’s Annual Report on Form 10-K for the year ended March 31, 2022 and under legacy lease accounting under ASC 840, future minimum operating lease commitments as of March 31, 2022 were as follows (in thousands):


	March 31, 2022
2023	$	681
2024	647
2025	156
Total	$	1,484