NOTE 26 - LEASES

The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate.

The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of March 31, 2021:

Lease obligations at March 31, 2021, consisted of the following:

Lease commitments for short-term operating leases as of March 31, 2021 was approximately $425. The Company’s rent expense for office space was $951 for the year ended March 31, 2021 and $1,147 for the year ended March 31, 2020, respectively.