GSI Technology (GSIT) 10-Q2 Aug 242025 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Jul. 29, 2024
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-33387
Entity Registrant Name	GSI TECHNOLOGY INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0398779
Entity Address, Address Line One	1213 Elko Drive
Entity Address, City or Town	Sunnyvale
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94089
City Area Code	408
Local Phone Number	331-8800
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	GSIT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,446,380
Entity Central Index Key	0001126741
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
ASSETS
Cash and cash equivalents	$ 21,765	$ 14,429
Accounts receivable, net	2,718	3,118
Inventories	4,467	4,977
Prepaid expenses and other current assets ($375 and $375 from a related party)	2,143	1,954
Assets held for sale		5,629
Total current assets	31,093	30,107
Property and equipment, net	1,076	1,148
Operating lease right-of-use assets	10,471	1,553
Goodwill	7,978	7,978
Intangible assets, net	1,498	1,556
Deposits	211	122
Total assets	52,327	42,464
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable ($6 and $0 to a related party)	653	668
Lease liabilities, current	1,528	567
Accrued expenses and other liabilities	3,241	4,130
Total current liabilities	5,422	5,365
Deferred tax liability	14	14
Lease liabilities, non-current	8,815	955
Contingent consideration, non-current	74	160
Total liabilities	14,325	6,494
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock: $0.001 par value authorized: 5,000,000 shares; issued and outstanding: none
Common Stock: $0.001 par value authorized: 150,000,000 shares; issued and outstanding: 25,446,380 and 25,300,372 shares, respectively	25	25
Additional paid-in capital	61,552	60,598
Accumulated other comprehensive loss	(87)	(87)
Retained deficit	(23,488)	(24,566)
Total stockholders' equity	38,002	35,970
Total liabilities and stockholders' equity	$ 52,327	$ 42,464

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Assets Abstract
Prepaid expenses and other current assets	$ 2,143,000	$ 1,954,000
Accounts payable	$ 653,000	$ 668,000
Stockholders' Equity
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	25,446,380	25,300,372
Common stock, shares outstanding	25,446,380	25,300,372
Related party
Assets Abstract
Prepaid expenses and other current assets	$ 375,000	$ 375,000
Accounts payable	$ 6,000	$ 0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 4,671,000	$ 5,587,000
Cost of revenues ($8 and $0 to a related party)	2,510,000	2,518,000
Gross profit	2,161,000	3,069,000
Operating expenses:
Research and development	4,214,000	5,204,000
Selling, general and administrative	2,604,000	3,004,000
Gain from sale and leaseback transaction	(5,737,000)
Total operating expenses	1,081,000	8,208,000
Income (loss) from operations	1,080,000	(5,139,000)
Interest income	88,000	143,000
Other expense, net	(33,000)	(63,000)
Income (loss) before income taxes	1,135,000	(5,059,000)
Provision for income taxes	57,000	51,000
Net income (loss)	$ 1,078,000	$ (5,110,000)
Net income (loss) per share:
Basic	$ 0.04	$ (0.21)
Diluted	$ 0.04	$ (0.21)
Weighted average shares used in per share calculations:
Basic	25,374	24,866
Diluted	25,686	24,866

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Cost of revenues, related party	$ 8	$ 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 1,078	$ (5,110)
Net unrealized gain on available-for-sale investments		27
Total comprehensive income (loss)	$ 1,078	$ (5,083)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Deficit	Total
Beginning Balance - Shares at Mar. 31, 2023	24,685,059
Beginning Balance - Amount at Mar. 31, 2023	$ 25	$ 55,953	$ (127)	$ (4,479)	$ 51,372
Issuance of common stock under employee stock option plans, shares	398,084
Issuance of common stock under employee stock option plans, amount		1,473			1,473
Stock-based compensation expense		820			820
Comprehensive loss:
Net income (loss)				(5,110)	(5,110)
Net unrealized gain on available-for-sale investments			27		27
Ending Balance, Shares at Jun. 30, 2023	25,083,143
Ending Balance, Amount at Jun. 30, 2023	$ 25	58,246	(100)	(9,589)	48,582
Beginning Balance - Shares at Mar. 31, 2024	25,300,372
Beginning Balance - Amount at Mar. 31, 2024	$ 25	60,598	(87)	(24,566)	35,970
Issuance of common stock under employee stock option plans, shares	146,008
Issuance of common stock under employee stock option plans, amount		296			296
Stock-based compensation expense		658			658
Comprehensive loss:
Net income (loss)				1,078	1,078
Ending Balance, Shares at Jun. 30, 2024	25,446,380
Ending Balance, Amount at Jun. 30, 2024	$ 25	$ 61,552	$ (87)	$ (23,488)	$ 38,002

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 1,078	$ (5,110)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Allowance for credit losses	(8)	(10)
Provision for excess and obsolete inventories	91	35
Non-cash lease expense	174	148
Change in fair value of contingent consideration	(86)	(45)
Depreciation and amortization	192	276
Gain from sale and leaseback transaction	(5,737)
Stock-based compensation	658	820
Amortization of premium on investments		(1)
Changes in assets and liabilities:
Accounts receivable	408	399
Inventories	419	452
Prepaid expenses and other assets	(278)	(141)
Accounts payable	(15)	(270)
Accrued expenses and other liabilities	(1,160)	(284)
Net cash used in operating activities	(4,264)	(3,731)
Cash flows from investing activities:
Proceeds from sale of assets	11,336
Maturities of short-term investments		2,500
Purchases of property and equipment	(32)	(607)
Net cash provided by investing activities	11,304	1,893
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans	296	1,473
Net cash provided by financing activities	296	1,473
Net increase (decrease) in cash and cash equivalents	7,336	(365)
Cash and cash equivalents at beginning of the period	14,429	27,212
Cash and cash equivalents at end of the period	21,765	26,847
Non-cash investing and financing activities:
Operating lease right-of-use assets exchanged for lease obligations	9,092	637
Supplemental cash flow information:
Net cash paid for income taxes	$ 49	$ 13

1. THE COMPANY AND SUMMARY OF S

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2024
The Company And Summary Of Significant Accounting Policies
NOTE 1 - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024. The consolidated results of operations for the three months ended June 30, 2024 are not necessarily indicative of the results to be expected for the entire fiscal year. Significant accounting policies There have been no material changes to our significant accounting policies that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024. Government Agreements From time to time, the Company may enter into agreements with federal government agencies. GAAP does not have specific accounting standards covering agreements between the government and business entities. The Company applies International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance, by analogy when accounting for agreements entered into with the government. Under IAS 20, government grants or awards are initially recognized when there is reasonable assurance the conditions of the grant or award will be met and the grant or award will be received. After initial recognition, government grants or awards are recognized on a systematic basis in a manner consistent with the manner in which the Company recognizes the underlying costs for which the grant or award is intended to compensate. The Company follows ASC 832, Disclosures by Business Entities about Government Assistance, with respect to the disclosures of government grants or awards. Credit Losses — Marketable Securities For marketable securities in an unrealized loss position, the Company periodically assesses its portfolio for impairment. The assessment first considers the intent or requirement to sell the marketable security. If either of these criteria are met, the amortized cost basis is written down to fair value through earnings. Beginning April 1, 2023, if the criteria above are not met, the Company evaluates whether the decline resulted from credit losses or other factors by considering the extent to which fair value is less than amortized cost, any changes to the rating of the marketable security by a rating agency, and any adverse conditions specifically related to the marketable security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the marketable security is compared to the amortized cost basis of the marketable security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any other impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive loss. Credit Losses Accounts Receivable Accounts receivable are recorded at the amounts billed less estimated allowances for credit losses for any potential uncollectible amounts. The Company continually monitors customer payments and maintains an allowance for estimated losses resulting from a customer’s inability to make required payments. The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and economic conditions that may affect a customer’s ability to pay. Accounts receivable are written-off and charged against an allowance for credit losses when the Company has exhausted collection efforts without success. Risk and uncertainties The decline in the global economic environment due to, among other things, higher interest rates and worldwide inflationary pressures has affected the business activities of the Company, its customers, suppliers, and other business partners in the fiscal year ended March 31, 2024 and into the three months ended June 30, 2024. Our software development and certain regional sales activities for our APU product offerings occur in Israel. Our Vice President, Associative Computing, along with a team of software development experts are based in our Israel facility. This team is needed for the development of software required in the use of our APU product offering. Proof of concept customers for our SAR imagine processing acceleration system are also based in Israel. We are closely monitoring developments in the evolving military conflict with Hamas that began on October 7, 2023 including potential impacts to our business, customers, employees and operations in Israel. At this time, the impact on GSI Technology is uncertain and subject to change given the volatile nature of the situation, but adverse changes in the military conditions in Israel could harm our business and our stock price could decline. The Company believes that during the next 12 months disruptions in the capital markets as a result of higher interest rates, worldwide inflationary pressures and the decline in the global economic environment could impact general economic activity and demand in the Company’s end markets. Additionally, fluctuations in customer demand due to previous buffer stock purchases during the semiconductor supply shortage may negatively impact near-term revenues. Accounting pronouncements not yet adopted by the Company In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which will require the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. The Company is currently evaluating the effect that the updated standard will have on the Company's financial statement disclosures.

2. REVENUE RECOGNITION

2. REVENUE RECOGNITION	3 Months Ended
2. REVENUE RECOGNITION	Jun. 30, 2024
REVENUE RECOGNITION.
NOTE 2 - REVENUE RECOGNITION	NOTE 2—REVENUE RECOGNITION The Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. The Company’s customer contracts, which may be in the form of purchase orders, contracts or purchase agreements, contain performance obligations for delivery of agreed upon products. Delivery of all performance obligations contained within a contract with a customer typically occurs at the same time (or within the same accounting period). Transfer of control occurs at the point at which delivery has occurred, title and the risks and rewards of ownership have passed to the customer, and the Company has a right to payment. The Company recognizes revenue upon shipment of the product. Because all of the Company’s performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption practical expedient and, therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The Company adjusts the transaction price for variable consideration. Variable consideration is not typically significant and primarily results from stock rotation rights and quick pay discounts provided to certain distributors. As a practical expedient, the Company is recognizing the incremental costs of obtaining a contract, specifically commission expenses that have a period of benefit of less than twelve months, as an expense when incurred. Additionally, the Company has adopted an accounting policy to recognize shipping costs that occur after control transfers to the customer as a fulfillment activity. The Company’s contracts with customers do not typically include extended payment terms. Payment terms vary by contract type and type of customer and generally range from 30 to 60 days from shipment. Additionally, the Company has right to payment upon shipment. The Company records revenue net of sales tax, value added tax, excise tax and other taxes collected concurrent with product sales. The impact of such taxes on product sales is immaterial. The Company warrants its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs and the accrued warranty liability were not material as of and for the periods ended June 30, 2024 and March 31, 2024. Substantially all of the Company’s revenue is derived from sales of SRAM products, which represent approximately 99% of total revenues in each of the three months ended June 30, 2024 and 2023. Nokia, the Company’s largest customer, purchases products directly from the Company and through contract manufacturers and distributors. Based on information provided to the Company by its contract manufacturers and distributors, purchases by Nokia represented approximately 21% and 34% of the Company’s net revenues in the three months ended June 30, 2024 and 2023, respectively. See “Note 12 — Segment and Geographic Information” for revenue by shipment destination. The following table presents the Company’s revenue disaggregated by customer type. Three Months Ended June 30, 2024 2023 (In thousands) Contract manufacturers $ 411 $ 1,949 Distribution 4,240 3,614 OEMs 20 24 $ 4,671 $ 5,587

3. NET INCOME (LOSS) PER COMMON

3. NET INCOME (LOSS) PER COMMON SHARE	3 Months Ended
3. NET INCOME (LOSS) PER COMMON SHARE	Jun. 30, 2024
NET INCOME (LOSS) PER COMMON SHARE
NOTE 3 - NET INCOME (LOSS) PER COMMON SHARE	NOTE 3—NET INCOME (LOSS) PER COMMON SHARE The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net loss per share. The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended June 30, 2024 2023 (In thousands, except per share amounts) Net income (loss) $ 1,078 $ (5,110) Denominators: Weighted average shares—Basic 25,374 24,866 Dilutive effect of employee stock options 301 — Dilutive effect of employee stock purchase plan options 11 — Weighted average shares—Dilutive 25,686 24,866 Net income (loss) per common share—Basic $ 0.04 $ (0.21) Net income (loss) per common share—Diluted $ 0.04 $ (0.21) The following shares of common stock underlying outstanding stock options and unissued ESPP shares, determined on a weighted average basis, were excluded from the computation of diluted net income (loss) per share as they had an anti-dilutive effect: Three Months Ended June 30, 2024 2023 (In thousands) Shares underlying options and ESPP shares 7,650 7,778

4. BALANCE SHEET DETAIL

4. BALANCE SHEET DETAIL	3 Months Ended
4. BALANCE SHEET DETAIL	Jun. 30, 2024
BALANCE SHEET DETAIL
NOTE 4 - BALANCE SHEET DETAIL	NOTE 4—BALANCE SHEET DETAIL June 30, 2024 March 31, 2024 (In thousands) Inventories: Work-in-progress $ 2,282 $ 2,865 Finished goods 2,174 2,112 Inventory at distributors 11 — $ 4,467 $ 4,977 June 30, 2024 March 31, 2024 (In thousands) Accounts receivable, net: Accounts receivable $ 2,754 $ 3,162 Less: Allowances for credit losses (36) (44) $ 2,718 $ 3,118 June 30, 2024 March 31, 2024 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ 685 $ 668 Other receivables 292 215 Other prepaid expenses and other current assets 1,166 1,071 $ 2,143 $ 1,954 June 30, 2024 March 31, 2024 (In thousands) Property and equipment, net: Computer and other equipment $ 17,987 $ 18,555 Software 4,426 4,428 Furniture and fixtures 102 102 Leasehold improvements 927 927 23,442 24,012 Less: Accumulated depreciation (22,366) (22,864) $ 1,076 $ 1,148 Depreciation expense was $134,000 and $217,000 for the three months ended June 30, 2024 and 2023, respectively. The following tables summarize the components of intangible assets and related accumulated amortization balances at June 30, 2024 and March 31, 2024 (in thousands): As of June 30, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (2,722) 1,498 Software 80 (80) — Total $ 4,890 $ (3,392) $ 1,498 As of March 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (2,664) 1,556 Software 80 (80) — Total $ 4,890 $ (3,334) $ 1,556 Amortization of intangible assets included in cost of revenues was $58,000 and $59,000 in the three months ended June 30, 2024 and 2023, respectively. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. As of June 30, 2024, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Fiscal year ending March 31, 2025 (remaining nine months) $ 175 2026 233 2027 233 2028 233 2029 233 Thereafter 391 Total $ 1,498 June 30, 2024 March 31, 2024 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ 2,521 $ 3,173 Accrued commissions 114 180 Income taxes payable 15 10 Miscellaneous accrued expenses 591 767 $ 3,241 $ 4,130

5. GOODWILL

5. GOODWILL	3 Months Ended
5. GOODWILL	Jun. 30, 2024
GOODWILL
NOTE 5 - GOODWILL	NOTE 5—GOODWILL Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed in a business combination. The Company tests for goodwill impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company assesses goodwill for impairment on an annual basis on the last day of February in the fourth quarter of its fiscal year. The Company has one reporting unit. The Company had a goodwill balance of $8.0 million as of both June 30, 2024 and March 31, 2024. The goodwill resulted from the acquisition of MikaMonu Group Ltd. in fiscal 2016. The Company completed its annual impairment test during the fourth quarter of fiscal 2024 and concluded that there was no impairment, as it was more likely than not that the fair value of its sole reporting unit exceeded its carrying value and the performance of a quantitative impairment test was not required.

6. INCOME TAXES

6. INCOME TAXES	3 Months Ended
6. INCOME TAXES	Jun. 30, 2024
INCOME TAXES
NOTE 6 - INCOME TAXES	NOTE 6—INCOME TAXES Due to historical losses in the United States, the Company has a full valuation allowance on its United States federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. Management believes that within the next twelve months the Company could have a reduction in uncertain tax benefits of up to $767,000, including interest and penalties, as a result of the lapse of statute of limitations. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations. The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2013 through 2023 remain open to examination by federal tax authorities, and fiscal years 2012 through 2023 remain open to examination by California tax authorities. Fiscal years 2020 through 2023 are subject to audit by the Israeli tax authorities. For the three months ended June 30, 2024 and June 30, 2023, the Company incurred income tax expense of $57,000 and $51,000 on net income before income taxes of $1.1 million and a net loss before income taxes of ($5.1 million), respectively. The provision was calculated using the annualized effective tax rate method. The Company’s estimated annual effective income tax rate, excluding discrete items, was approximately (2.89%) and (2.25%) as of June 30, 2024 and 2023, respectively. The annual effective tax rates as of June 30, 2024 and 2023 vary from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and foreign tax differential.

7. FINANCIAL INSTRUMENTS

7. FINANCIAL INSTRUMENTS	3 Months Ended
7. FINANCIAL INSTRUMENTS	Jun. 30, 2024
FINANCIAL INSTRUMENTS
NOTE 7 - FINANCIAL INSTRUMENTS	NOTE 7—FINANCIAL INSTRUMENTS Fair value measurements Authoritative accounting guidance for fair value measurements provides a framework for measuring fair value and related disclosures. The guidance applies to all financial assets and financial liabilities that are measured on a recurring basis. The guidance requires fair value measurement to be classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. As of June 30, 2024, the Level 1 category included money market funds of Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers. As of June 30, 2024 and March 31, 2024, there were no Level 2 category short-term investments. Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. As of June 30, 2024, the Company’s Level 3 financial instruments measured at fair value on the Condensed Consolidated Balance Sheets consisted of the contingent consideration liability related to the acquisition of MikaMonu. The fair value of the contingent consideration liability was initially determined as of the acquisition date using unobservable inputs. These inputs included the estimated amount and timing of future cash flows, the probability achievement of the forecast and a risk-adjusted discount rate of approximately 14.8% used to adjust the probability-weighted cash flows to their present value. Significant increases (decreases) to the estimated amount and timing of future revenues or the probability of achievement of the revenue forecast would result in a significantly higher (lower) fair value measurement. Conversely, a significant increase (decrease) in the risk-adjusted discount rate would result in a significantly (lower) higher fair value measurement. Generally, changes used in the assumptions for future revenues and probability of achievement of the revenue forecast would be accompanied by a directionally similar change in the fair value measurement and expense. Conversely, changes in the risk-adjusted discount rate would be accompanied by a directionally opposite change in the related fair value measurement and expense. The continued appropriateness of the Monte Carlo valuation model selected or any decision to change the valuation model may also lead to changes in fair value measurement. Subsequent to the acquisition date, at each reporting period, the contingent consideration liability is re-measured to fair value with changes recorded in selling, general and administrative expenses in the Consolidated Statements of Operations. During the most recent re-measurement of the contingent consideration liability as of June 30, 2024, the Company used a risk-adjusted discount rate of approximately 15.8% to adjust the probability-weighted cash flows to their present value using probabilities ranging from 25% to 70% for the remaining contingent events. The contingent consideration liability is included in contingent consideration, non-current on the Condensed Consolidated Balance Sheets at June 30, 2024 and March 31, 2024 in the amount of $74,000 and $160,000, respectively. The fair value of financial assets measured on a recurring basis is as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs June 30, 2024 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 13,247 $ 13,247 $ — $ — Marketable securities — — — — Total $ 13,247 $ 13,247 $ — $ — Liabilities: Contingent consideration $ 74 $ — $ — $ 74 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs March 31, 2024 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 5,676 $ 5,676 $ — $ — Marketable securities — — — — Total $ 5,676 $ 5,676 $ — $ — Liabilities: Contingent consideration $ 160 $ — $ — $ 160 The following table sets forth the changes in fair value of contingent consideration for the three months ended June 30, 2024 and 2023, respectively: Three Months Ended June 30, 2024 2023 (In thousands) Contingent consideration, beginning of period $ 160 $ 1,052 Change due to accretion 4 38 Re-measurement of contingent consideration (90) (83) Contingent consideration, end of period $ 74 $ 1,007 Short-term investments The Company had money market funds of $13.2 million and $5.7 million at June 30, 2024 and March 31, 2024, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when declines are determined to be other-than-temporary. There were no available-for-sale investments at June 30, 2024 or March 31, 2024, respectively.

8. LEASES

8. LEASES	3 Months Ended
8. LEASES	Jun. 30, 2024
LEASES
NOTE 8 - LEASES	NOTE 8—LEASES The Company has operating leases for corporate offices and research and development facilities. The Company’s leases have remaining lease terms of 26 months to 119 months, some of which include options to extend for up to 10 years. On June 6, 2024, the Company completed a sale and leaseback transaction pursuant to a previously executed purchase and sale agreement (the “Agreement”) with an unrelated party, as purchaser, for the sale of the Company’s 1213 Elko Drive property in Sunnyvale, California (the “Sunnyvale Property”) for a purchase price, net of closing and other expenses payable by the Company, of $11.3 million in cash. Concurrent with the sale, the Company entered into a lease agreement (the “Lease”) to lease all of the Sunnyvale Property that it occupied from the purchaser for an initial term of ten years from the closing of the sale of the Sunnyvale Property. The Company has the option to renew the term of the Lease for Supplemental balance sheet information related to leases was as follows: As of As of June 30, 2024 March 31, 2024 (In thousands) Operating Leases Operating lease right-of-use assets $ 10,471 $ 1,553 Lease liabilities-current $ 1,528 $ 567 Lease liabilities-non-current 8,815 955 Total operating lease liabilities $ 10,343 $ 1,522 The following table provides the details of lease costs: Three Months Ended June 30, 2024 2023 (In thousands) Operating lease cost $ 233 $ 143 Short-term lease cost 8 8 $ 241 $ 151 The following table provides other information related to leases: Three Months Ended June 30, 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 217 $ 142 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 9,092 $ 637 Weighted-average remaining lease term (years): Operating leases 9.14 2.98 Weighted-average discount rate: Operating leases 6.18% 4.12% The following table provides the maturities of the Company’s operating lease liabilities as of June 30, 2024: Operating Lease Liabilities Fiscal Year (In thousands) 2025 (remaining nine months) $ 1,151 2026 1,694 2027 1,581 2028 1,192 2029 1,220 Thereafter 6,908 Total undiscounted future cash flows 13,746 Less: Imputed interest (3,403) Present value of undiscounted future cash flows $ 10,343 Presentation on statement of financial position Current $ 1,528 Non-current $ 8,815

9. COMMITMENTS AND CONTINGENCIE

9. COMMITMENTS AND CONTINGENCIES	3 Months Ended
9. COMMITMENTS AND CONTINGENCIES	Jun. 30, 2024
COMMITMENTS AND CONTINGENCIES
NOTE 9 - COMMITMENTS AND CONTINGENCIES	NOTE 9—COMMITMENTS AND CONTINGENCIES Indemnification obligations The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold and certain intellectual property rights. In each of these circumstances, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. It is not possible to predict the maximum potential amount of future payments that may be required under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on its business, financial condition, cash flows or results of operations.

10. STOCK-BASED COMPENSATION

10. STOCK-BASED COMPENSATION	3 Months Ended
10. STOCK-BASED COMPENSATION	Jun. 30, 2024
STOCK-BASED COMPENSATION
NOTE 10 - STOCK-BASED COMPENSATION	NOTE 10—STOCK-BASED COMPENSATION As of June 30, 2024, 2,623,851 shares of common stock were available for grant under the Company’s Amended and Restated 2016 Equity Incentive Plan. The following table summarizes the Company’s stock option activities for the three months ended June 30, 2024: Weighted Number of Shares Average Weighted Shares Underlying Remaining Average Available for Options Contractual Exercise Intrinsic Grant Outstanding Life (Years) Price Value Balance at March 31, 2024 2,584,186 8,968,199 $ 5.26 Granted (80,210) 80,210 $ 3.10 Exercised — (3,000) $ 1.98 $ 3,341 Forfeited 119,875 (139,775) $ 4.63 Balance at June 30, 2024 2,623,851 8,905,634 5.41 $ 5.25 Options vested and exercisable 6,426,713 4.23 $ 5.79 $ 275,591 Options vested and expected to vest 8,842,029 5.39 $ 5.26 $ 800,515 The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans: Three Months Ended June 30, 2024 2023 (In thousands) Cost of revenues $ 56 $ 67 Research and development 290 386 Selling, general and administrative 312 367 $ 658 $ 820

11. RELATED PARTY TRANSACTION

11. RELATED PARTY TRANSACTION	3 Months Ended
11. RELATED PARTY TRANSACTION	Jun. 30, 2024
RELATED PARTY TRANSACTION
NOTE 11 - RELATED PARTY TRANSACTION	NOTE 11—RELATED PARTY TRANSACTION The Company incurred manufacturing services of approximately $8,000 and $0 during the three months ended June 30, 2024 and 2023, respectively, from Wistron Neweb Corp (“WNC”) in connection with the manufacturing of single-APU PCIe boards, to be used in the Company’s in-place associative computing product. Haydn Hsieh, a member of the Company’s board of directors, is the Chairman and Chief Strategy Officer of WNC. The amount owed to WNC, $6,000 and $0 at June 30, 2024 and March 31, 2024, respectively, is included in accounts payable in the Condensed Consolidated Balance Sheets.

12. SEGMENT AND GEOGRAPHIC INFO

12. SEGMENT AND GEOGRAPHIC INFORMATION	3 Months Ended
12. SEGMENT AND GEOGRAPHIC INFORMATION	Jun. 30, 2024
SEGMENT AND GEOGRAPHIC INFORMATION
NOTE 12 - SEGMENT AND GEOGRAPHIC INFORMATION	NOTE 12—SEGMENT AND GEOGRAPHIC INFORMATION Based on its operating management and financial reporting structure, the Company has determined that it has one reportable business segment: the design, development and sale of integrated circuits. The following is a summary of net revenues by geographic area based on the location to which product is shipped: Three Months Ended June 30, 2024 2023 (In thousands) United States $ 1,565 $ 3,087 China 1,098 168 Singapore 775 493 Netherlands 36 1,016 Germany 930 683 Rest of the world 267 140 $ 4,671 $ 5,587 All sales are denominated in United States dollars.

13. GOVERNMENT AGREEMENTS

13. GOVERNMENT AGREEMENTS	3 Months Ended
13. GOVERNMENT AGREEMENTS	Jun. 30, 2024
GOVERNMENT AGREEMENTS
NOTE 13 - GOVERNMENT AGREEMENTS	NOTE 13—GOVERNMENT AGREEMENTS In June 2023, the Company entered into a prototype agreement with the Space Development Agency for the development of a Next-Generation Associative Processing Unit-2 for Enhanced Space-Based Capabilities (“Prototype Agreement”). Under the Prototype Agreement, the Company will receive an award funded by the Small Business Innovation Research program. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $1.25 million upon successful completion of each milestone. In November 2023, the Company entered into a second prototype agreement with the Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total- an estimated $1.1 million upon successful completion of each milestone. The Prototype Agreements are unrelated to the Company’s ordinary business activities. The Company has discretion in managing the activities under the Prototype Agreement and retains all developed intellectual property. The Company applies IAS 20, by analogy, and recognizes the award as a reduction of research and development expenses based on a cost incurred method. During the three months ended June 30, 2024, the Company recognized $281,000 as a reduction to research and development expense in the Condensed Consolidated Statements of Operations. During the quarter ended June 30, 2024, the Company received total milestone payments of $79,000 under the Prototype Agreements.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,078	$ (5,110)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

1. THE COMPANY AND SUMMARY OF_2

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jun. 30, 2024
The Company And Summary Of Significant Accounting Policies
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024. The consolidated results of operations for the three months ended June 30, 2024 are not necessarily indicative of the results to be expected for the entire fiscal year.
Significant accounting policies	Significant accounting policies There have been no material changes to our significant accounting policies that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024.
Government Agreements	Government Agreements From time to time, the Company may enter into agreements with federal government agencies. GAAP does not have specific accounting standards covering agreements between the government and business entities. The Company applies International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance, by analogy when accounting for agreements entered into with the government. Under IAS 20, government grants or awards are initially recognized when there is reasonable assurance the conditions of the grant or award will be met and the grant or award will be received. After initial recognition, government grants or awards are recognized on a systematic basis in a manner consistent with the manner in which the Company recognizes the underlying costs for which the grant or award is intended to compensate. The Company follows ASC 832, Disclosures by Business Entities about Government Assistance, with respect to the disclosures of government grants or awards.
Credit Losses-Marketable Securities	Credit Losses — Marketable Securities For marketable securities in an unrealized loss position, the Company periodically assesses its portfolio for impairment. The assessment first considers the intent or requirement to sell the marketable security. If either of these criteria are met, the amortized cost basis is written down to fair value through earnings. Beginning April 1, 2023, if the criteria above are not met, the Company evaluates whether the decline resulted from credit losses or other factors by considering the extent to which fair value is less than amortized cost, any changes to the rating of the marketable security by a rating agency, and any adverse conditions specifically related to the marketable security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the marketable security is compared to the amortized cost basis of the marketable security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any other impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive loss.
Credit Losses-Accounts Receivable	Credit Losses Accounts Receivable Accounts receivable are recorded at the amounts billed less estimated allowances for credit losses for any potential uncollectible amounts. The Company continually monitors customer payments and maintains an allowance for estimated losses resulting from a customer’s inability to make required payments. The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and economic conditions that may affect a customer’s ability to pay. Accounts receivable are written-off and charged against an allowance for credit losses when the Company has exhausted collection efforts without success.
Risk and uncertainties	Risk and uncertainties The decline in the global economic environment due to, among other things, higher interest rates and worldwide inflationary pressures has affected the business activities of the Company, its customers, suppliers, and other business partners in the fiscal year ended March 31, 2024 and into the three months ended June 30, 2024. Our software development and certain regional sales activities for our APU product offerings occur in Israel. Our Vice President, Associative Computing, along with a team of software development experts are based in our Israel facility. This team is needed for the development of software required in the use of our APU product offering. Proof of concept customers for our SAR imagine processing acceleration system are also based in Israel. We are closely monitoring developments in the evolving military conflict with Hamas that began on October 7, 2023 including potential impacts to our business, customers, employees and operations in Israel. At this time, the impact on GSI Technology is uncertain and subject to change given the volatile nature of the situation, but adverse changes in the military conditions in Israel could harm our business and our stock price could decline. The Company believes that during the next 12 months disruptions in the capital markets as a result of higher interest rates, worldwide inflationary pressures and the decline in the global economic environment could impact general economic activity and demand in the Company’s end markets. Additionally, fluctuations in customer demand due to previous buffer stock purchases during the semiconductor supply shortage may negatively impact near-term revenues.
Accounting pronouncements not yet adopted by the Company	Accounting pronouncements not yet adopted by the Company In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which will require the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. The Company is currently evaluating the effect that the updated standard will have on the Company's financial statement disclosures.

2. REVENUE RECOGNITION (Tables)

2. REVENUE RECOGNITION (Tables)	3 Months Ended
2. REVENUE RECOGNITION (Tables)	Jun. 30, 2024
REVENUE RECOGNITION.
Summary of revenue disaggregated by customer type	Three Months Ended June 30, 2024 2023 (In thousands) Contract manufacturers $ 411 $ 1,949 Distribution 4,240 3,614 OEMs 20 24 $ 4,671 $ 5,587

3. NET INCOME (LOSS) PER COMM_2

3. NET INCOME (LOSS) PER COMMON SHARE (Tables)	3 Months Ended
3. NET INCOME (LOSS) PER COMMON SHARE (Tables)	Jun. 30, 2024
NET INCOME (LOSS) PER COMMON SHARE
Basic and diluted net income (loss) per share	Three Months Ended June 30, 2024 2023 (In thousands, except per share amounts) Net income (loss) $ 1,078 $ (5,110) Denominators: Weighted average shares—Basic 25,374 24,866 Dilutive effect of employee stock options 301 — Dilutive effect of employee stock purchase plan options 11 — Weighted average shares—Dilutive 25,686 24,866 Net income (loss) per common share—Basic $ 0.04 $ (0.21) Net income (loss) per common share—Diluted $ 0.04 $ (0.21)
Anti-dilutive shares	Three Months Ended June 30, 2024 2023 (In thousands) Shares underlying options and ESPP shares 7,650 7,778

4. BALANCE SHEET DETAIL (Tables

4. BALANCE SHEET DETAIL (Tables)	3 Months Ended
4. BALANCE SHEET DETAIL (Tables)	Jun. 30, 2024
BALANCE SHEET DETAIL
Schedule of inventories	June 30, 2024 March 31, 2024 (In thousands) Inventories: Work-in-progress $ 2,282 $ 2,865 Finished goods 2,174 2,112 Inventory at distributors 11 — $ 4,467 $ 4,977
Schedule of accounts receivable, net	June 30, 2024 March 31, 2024 (In thousands) Accounts receivable, net: Accounts receivable $ 2,754 $ 3,162 Less: Allowances for credit losses (36) (44) $ 2,718 $ 3,118
Schedule of prepaid expenses and other current assets	June 30, 2024 March 31, 2024 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ 685 $ 668 Other receivables 292 215 Other prepaid expenses and other current assets 1,166 1,071 $ 2,143 $ 1,954
Schedule of property and equipment, net	June 30, 2024 March 31, 2024 (In thousands) Property and equipment, net: Computer and other equipment $ 17,987 $ 18,555 Software 4,426 4,428 Furniture and fixtures 102 102 Leasehold improvements 927 927 23,442 24,012 Less: Accumulated depreciation (22,366) (22,864) $ 1,076 $ 1,148
Schedule of intangible assets	The following tables summarize the components of intangible assets and related accumulated amortization balances at June 30, 2024 and March 31, 2024 (in thousands): As of June 30, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (2,722) 1,498 Software 80 (80) — Total $ 4,890 $ (3,392) $ 1,498 As of March 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (2,664) 1,556 Software 80 (80) — Total $ 4,890 $ (3,334) $ 1,556
Estimated future amortization expense of intangible assets	As of June 30, 2024, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Fiscal year ending March 31, 2025 (remaining nine months) $ 175 2026 233 2027 233 2028 233 2029 233 Thereafter 391 Total $ 1,498
Schedule of accrued expenses and other liabilities	June 30, 2024 March 31, 2024 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ 2,521 $ 3,173 Accrued commissions 114 180 Income taxes payable 15 10 Miscellaneous accrued expenses 591 767 $ 3,241 $ 4,130

7. FINANCIAL INSTRUMENTS (Table

7. FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
7. FINANCIAL INSTRUMENTS (Tables)	Jun. 30, 2024
FINANCIAL INSTRUMENTS
Schedule of fair value of financial assets and liabilities measured on a recurring basis	The fair value of financial assets measured on a recurring basis is as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs June 30, 2024 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 13,247 $ 13,247 $ — $ — Marketable securities — — — — Total $ 13,247 $ 13,247 $ — $ — Liabilities: Contingent consideration $ 74 $ — $ — $ 74 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs March 31, 2024 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 5,676 $ 5,676 $ — $ — Marketable securities — — — — Total $ 5,676 $ 5,676 $ — $ — Liabilities: Contingent consideration $ 160 $ — $ — $ 160
Schedule of changes in fair value of contingent consideration	Three Months Ended June 30, 2024 2023 (In thousands) Contingent consideration, beginning of period $ 160 $ 1,052 Change due to accretion 4 38 Re-measurement of contingent consideration (90) (83) Contingent consideration, end of period $ 74 $ 1,007

8. LEASES (Tables)

8. LEASES (Tables)	3 Months Ended
8. LEASES (Tables)	Jun. 30, 2024
LEASES
Summary of balance sheet information related to leases	As of As of June 30, 2024 March 31, 2024 (In thousands) Operating Leases Operating lease right-of-use assets $ 10,471 $ 1,553 Lease liabilities-current $ 1,528 $ 567 Lease liabilities-non-current 8,815 955 Total operating lease liabilities $ 10,343 $ 1,522
Summary of components of lease costs	Three Months Ended June 30, 2024 2023 (In thousands) Operating lease cost $ 233 $ 143 Short-term lease cost 8 8 $ 241 $ 151
Summary of other information related to leases	Three Months Ended June 30, 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 217 $ 142 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 9,092 $ 637 Weighted-average remaining lease term (years): Operating leases 9.14 2.98 Weighted-average discount rate: Operating leases 6.18% 4.12%
Summary of maturities of the lease liabilities	Operating Lease Liabilities Fiscal Year (In thousands) 2025 (remaining nine months) $ 1,151 2026 1,694 2027 1,581 2028 1,192 2029 1,220 Thereafter 6,908 Total undiscounted future cash flows 13,746 Less: Imputed interest (3,403) Present value of undiscounted future cash flows $ 10,343 Presentation on statement of financial position Current $ 1,528 Non-current $ 8,815

10. STOCK-BASED COMPENSATION (T

10. STOCK-BASED COMPENSATION (Tables)	3 Months Ended
10. STOCK-BASED COMPENSATION (Tables)	Jun. 30, 2024
STOCK-BASED COMPENSATION
Summary of stock option activities	Weighted Number of Shares Average Weighted Shares Underlying Remaining Average Available for Options Contractual Exercise Intrinsic Grant Outstanding Life (Years) Price Value Balance at March 31, 2024 2,584,186 8,968,199 $ 5.26 Granted (80,210) 80,210 $ 3.10 Exercised — (3,000) $ 1.98 $ 3,341 Forfeited 119,875 (139,775) $ 4.63 Balance at June 30, 2024 2,623,851 8,905,634 5.41 $ 5.25 Options vested and exercisable 6,426,713 4.23 $ 5.79 $ 275,591 Options vested and expected to vest 8,842,029 5.39 $ 5.26 $ 800,515
Summary of stock-based compensation expense by line item	Three Months Ended June 30, 2024 2023 (In thousands) Cost of revenues $ 56 $ 67 Research and development 290 386 Selling, general and administrative 312 367 $ 658 $ 820

12. SEGMENT AND GEOGRAPHIC IN_2

12. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
12. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	Jun. 30, 2024
SEGMENT AND GEOGRAPHIC INFORMATION
Net revenues by geographic area	Three Months Ended June 30, 2024 2023 (In thousands) United States $ 1,565 $ 3,087 China 1,098 168 Singapore 775 493 Netherlands 36 1,016 Germany 930 683 Rest of the world 267 140 $ 4,671 $ 5,587

2. REVENUE RECOGNITION (Details

2. REVENUE RECOGNITION (Details)	3 Months Ended
2. REVENUE RECOGNITION (Details)	Jun. 30, 2024	Jun. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract	true
Warranty period	3 years
Sales Revenue, Net \| Customer Concentration Risk
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk percentage	21%	34%
SRAM Products \| Sales Revenue, Net \| Customer Concentration Risk
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk percentage	99%
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Payment terms	30 days
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Payment terms	60 days

2. REVENUE RECOGNITION - Revenu

2. REVENUE RECOGNITION - Revenue disaggregated (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Net revenues	$ 4,671	$ 5,587
Contract Manufacturers
Disaggregation of Revenue [Line Items]
Net revenues	411	1,949
Distribution
Disaggregation of Revenue [Line Items]
Net revenues	4,240	3,614
OEMs
Disaggregation of Revenue [Line Items]
Net revenues	$ 20	$ 24

3. NET INCOME (LOSS) PER COMM_3

3. NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Net loss	$ 1,078	$ (5,110)
Weighted average shares - Basic	25,374	24,866
Weighted average shares - Dilutive	25,686	24,866
Net income (loss) per common share - Basic	$ 0.04	$ (0.21)
Net income (loss) per common share - Diluted	$ 0.04	$ (0.21)
Employee Stock Option [Member]
Dilutive effect of employee stock options	301
Employee stock purchase plan options
Dilutive effect of employee stock options	11

3. NET INCOME (LOSS) PER COMM_4

3. NET INCOME (LOSS) PER COMMON SHARE - Shares underlying options (Details) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
NET INCOME (LOSS) PER COMMON SHARE
Shares underlying options and ESPP shares	7,650	7,778

4. BALANCE SHEET DETAIL - Inven

4. BALANCE SHEET DETAIL - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Inventories:
Work-in-progress	$ 2,282	$ 2,865
Finished goods	2,174	2,112
Inventory at distributors	11
Total inventory	$ 4,467	$ 4,977

4. BALANCE SHEET DETAIL - Accou

4. BALANCE SHEET DETAIL - Accounts receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Accounts receivable, net:
Accounts receivable	$ 2,754	$ 3,162
Less: Allowances for credit losses	(36)	(44)
Total accounts receivable, net	$ 2,718	$ 3,118

4. BALANCE SHEET DETAIL - Prepa

4. BALANCE SHEET DETAIL - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 685	$ 668
Other receivables	292	215
Other prepaid expenses and other current assets	1,166	1,071
Total prepaid expenses and other current assets	$ 2,143	$ 1,954

4. BALANCE SHEET DETAIL - Prope

4. BALANCE SHEET DETAIL - Property and equipment, net (Details) - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Property and equipment, net:
Property and equipment, gross	$ 23,442,000		$ 24,012,000
Less: Accumulated depreciation	(22,366,000)		(22,864,000)
Total property and equipment, net	1,076,000		1,148,000
Depreciation	134,000	$ 217,000
Computer and other equipment
Property and equipment, net:
Property and equipment, gross	17,987,000		18,555,000
Software
Property and equipment, net:
Property and equipment, gross	4,426,000		4,428,000
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	102,000		102,000
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	$ 927,000		$ 927,000

4. BALANCE SHEET DETAIL - Intan

4. BALANCE SHEET DETAIL - Intangible assets (Details) - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Gross Carrying Amount	$ 4,890,000		$ 4,890,000
Accumulated Amortization	(3,392,000)		(3,334,000)
Total	1,498,000		1,556,000
Amortization of intangible assets	58,000	$ 59,000
Product Designs
Gross Carrying Amount	590,000		590,000
Accumulated Amortization	(590,000)		(590,000)
Patents
Gross Carrying Amount	4,220,000		4,220,000
Accumulated Amortization	(2,722,000)		(2,664,000)
Total	1,498,000		1,556,000
Software.
Gross Carrying Amount	80,000		80,000
Accumulated Amortization	$ (80,000)		$ (80,000)

4. BALANCE SHEET DETAIL - Futur

4. BALANCE SHEET DETAIL - Future amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Fiscal year ending March 31,
2025 (remaining nine months)	$ 175
2026	233
2027	233
2028	233
2029	233
Thereafter	391
Total	$ 1,498	$ 1,556

4. BALANCE SHEET DETAIL - Accru

4. BALANCE SHEET DETAIL - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Accrued expenses and other liabilities:
Accrued compensation	$ 2,521	$ 3,173
Accrued commissions	114	180
Income taxes payable	15	10
Miscellaneous accrued expenses	591	767
Total accrued expenses and other liabilities	$ 3,241	$ 4,130

5. GOODWILL (Details)

5. GOODWILL (Details) $ in Thousands	3 Months Ended
5. GOODWILL (Details) $ in Thousands	Jun. 30, 2024 USD ($) segment	Mar. 31, 2024 USD ($)
GOODWILL
Number of reporting units \| segment	1
Goodwill \| $	$ 7,978	$ 7,978

6. INCOME TAXES (Details)

6. INCOME TAXES (Details) - USD ($)	3 Months Ended
6. INCOME TAXES (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
INCOME TAXES
Possible reduction in uncertain tax benefits	$ 767,000
Provision for income taxes	57,000	$ 51,000
Income (loss) before income taxes	$ 1,135,000	$ (5,059,000)
Effective annual income tax rate (as a percentage)	(2.89%)	(2.25%)

7. FINANCIAL INSTRUMENTS (Detai

7. FINANCIAL INSTRUMENTS (Details)	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Nov. 23, 2015
Fair value measurements
Discount rate	15.8		14.8
Minimum
Fair value measurements
Probability rate	0.25
Maximum
Fair value measurements
Probability rate	0.70
Fair Value, Inputs, Level 2 \| Available for sale Securities
Fair value measurements
Short-term investments	$ 0
Other accrued expenses
Fair value measurements
Contingent consideration liability	74,000	$ 160,000
Fair Value, Measurements, Recurring
Fair value measurements
Assets	13,247,000	5,676,000
Liabilities	74,000	160,000
Fair Value, Measurements, Recurring \| Money Market Funds
Fair value measurements
Money market funds	13,200,000	5,700,000
Assets	13,247,000	5,676,000
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 1
Fair value measurements
Assets	13,247,000	5,676,000
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 1 \| Money Market Funds
Fair value measurements
Money market funds	13,200,000
Assets	13,247,000	5,676,000
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3
Fair value measurements
Liabilities	$ 74,000	$ 160,000

7. FINANCIAL INSTRUMENTS - Chan

7. FINANCIAL INSTRUMENTS - Change in contingent consideration (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Changes in fair value of contingent consideration
Contingent consideration, beginning of period	$ 160	$ 1,052
Change due to accretion	4	38
Re-measurement of contingent consideration	(90)	(83)
Contingent consideration, end of period	$ 74	$ 1,007

7. FINANCIAL INSTRUMENTS - Avai

7. FINANCIAL INSTRUMENTS - Available-for-sale investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Short-term Investments
Available-for-sale investments
Fair Value	$ 0	$ 0

8. LEASES - Operating leases (D

8. LEASES - Operating leases (Details)		3 Months Ended
8. LEASES - Operating leases (Details)	Jun. 06, 2024 USD ($)	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)
Leases
Operating lease, option to extend		true
Operating lease, renewal term		10 years
Proceeds from sale of assets	$ 11,300,000	$ 11,336,000
Lease term	10 years
Number of options to renew the lease term	2
Renewal lease term for sale and leaseback transaction	5 years
Amount of base rent per month	$ 90,768
Incremental rental rate percentage	3%
Gain from sale and leaseback transaction		5,737,000
Operating lease right-of-use assets		10,471,000	$ 1,553,000
Lease liabilities, current		1,528,000	567,000
Lease liabilities, non-current		8,815,000	955,000
Total operating lease liabilities		$ 10,343,000	$ 1,522,000
Minimum
Leases
Operating lease, term of lease		26 months
Maximum
Leases
Operating lease, term of lease		119 months

8. LEASES - Lease costs (Detail

8. LEASES - Lease costs (Details) - USD ($) $ in Thousands	3 Months Ended
8. LEASES - Lease costs (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Components of lease costs
Operating lease cost	$ 233	$ 143
Short-term lease cost	8	8
Lease costs	$ 241	$ 151

8. LEASES - Other information (

8. LEASES - Other information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 217	$ 142
Right-of-use assets obtained in exchange for lease obligations - Operating leases	$ 9,092	$ 637
Weighted-average remaining lease term (years) - Operating leases	9 years 1 month 20 days	2 years 11 months 23 days
Weighted-average discount rate - Operating leases	6.18%	4.12%

8. LEASES - Maturity of lease l

8. LEASES - Maturity of lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Maturity of Lease Liabilities
2025 (remaining nine months)	$ 1,151
2026	1,694
2027	1,581
2028	1,192
2029	1,220
Thereafter	6,908
Total undiscounted future cash flows	13,746
Less: Imputed interest	(3,403)
Total operating lease liabilities	10,343	$ 1,522
Current	1,528	567
Non-current	$ 8,815	$ 955

10. STOCK-BASED COMPENSATION -

10. STOCK-BASED COMPENSATION - Stock option activities (Details)	3 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
STOCK-BASED COMPENSATION
Shares available for grant, Beginning	2,584,186
Granted (in shares)	(80,210)
Forfeited (in shares)	119,875
Shares available for grant, Ending	2,623,851
Number of Shares Underlying Options Outstanding
Balance at the beginning of the period (in shares)	8,968,199
Granted (in shares)	80,210
Exercised (in shares)	(3,000)
Forfeited (in shares)	(139,775)
Balance at the end of the period (in shares)	8,905,634
Options vested and exercisable (in shares)	6,426,713
Options vested and expected to vest (in shares)	8,842,029
Weighted Average Remaining Contractual Life
Options weighted average remaining contractual life	5 years 4 months 28 days
Options vested and exercisable	4 years 2 months 23 days
Options vested and expected to vest	5 years 4 months 20 days
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 5.26
Granted (in dollars per share) \| $ / shares	3.10
Exercised (in dollars per share) \| $ / shares	1.98
Forfeited (in dollars per share) \| $ / shares	4.63
Balance at the end of the period (in dollars per share) \| $ / shares	5.25
Options vested and exercisable (in dollars per share) \| $ / shares	5.79
Options vested and expected to vest (in dollars per share) \| $ / shares	$ 5.26
Intrinsic Value
Exercised (in dollars) \| $	$ 3,341
Options vested and exercisable (in dollars) \| $	275,591
Options vested and expected to vest (in dollars) \| $	$ 800,515

10. STOCK-BASED COMPENSATION _2

10. STOCK-BASED COMPENSATION - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Stock-based compensation expense by line item
Stock-based compensation expense	$ 658	$ 820
Cost of revenues
Stock-based compensation expense by line item
Stock-based compensation expense	56	67
Research and development
Stock-based compensation expense by line item
Stock-based compensation expense	290	386
Selling, general and administrative
Stock-based compensation expense by line item
Stock-based compensation expense	$ 312	$ 367

11. RELATED PARTY TRANSACTION (

11. RELATED PARTY TRANSACTION (Details) - USD ($)	3 Months Ended		12 Months Ended
11. RELATED PARTY TRANSACTION (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Related Party Transaction [Line Items]
Accounts payable	$ 653,000		$ 668,000
Wistron Neweb Corp
Related Party Transaction [Line Items]
Manufacturing services	$ 8,000	$ 0
Related party
Related Party Transaction [Line Items]
Operating Cost and Expense, Related Party, Name [Extensible Enumeration]	Wistron Neweb Corp		Wistron Neweb Corp
Accounts payable	$ 6,000		$ 0

12. SEGMENT AND GEOGRAPHIC IN_3

12. SEGMENT AND GEOGRAPHIC INFORMATION - Revenue (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)
Net revenues by geographic area
Net revenues	$ 4,671	$ 5,587
Number of reporting units \| segment	1
United States
Net revenues by geographic area
Net revenues	$ 1,565	3,087
China
Net revenues by geographic area
Net revenues	1,098	168
Singapore
Net revenues by geographic area
Net revenues	775	493
Netherlands
Net revenues by geographic area
Net revenues	36	1,016
Germany
Net revenues by geographic area
Net revenues	930	683
Rest of the world
Net revenues by geographic area
Net revenues	$ 267	$ 140

13. GOVERNMENT AGREEMENTS (Deta

13. GOVERNMENT AGREEMENTS (Details) - USD ($)	3 Months Ended
13. GOVERNMENT AGREEMENTS (Details) - USD ($)	Jun. 30, 2024	Nov. 30, 2023	Jun. 30, 2023
Government Assistance
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration]	Research and Development Expense
Small Business Innovation Research program
Government Assistance
Milestone payments receivable		$ 1,100,000	$ 1,250,000
Amount recognized	$ 281,000
Total milestone payments received	$ 79,000