Leases

3 Months Ended

Jun. 30, 2025

Note 9. Leases

The Company's operating leases for its equipment and specialized spaces for company equipment have terms expiring at various dates through June 2033. Certain lease arrangements include renewal options, escalation clauses and rights of first refusal for the lessee to purchase the applicable property.

Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company's leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. Lease expense related to the net present value of payments is recognized on a straight-line basis over the lease term.

The key components of the Company's operating leases expenses are included in general and administrative expenses on the condensed consolidated statements of operations and were as follows:


	Three Months Ended June 30,
(In thousands)		2025		2024
Operating lease expense		117		10
Short-term lease expense		-		3
Total lease cost	$	117	$	13

Right-of-use assets and lease liabilities for operating leases were recorded in the condensed consolidated balance sheets as follows:


	(In thousands)
	June 30, 2025		March 31, 2025
Operating leases:
Operating lease right-of-use assets	$	2,894	$	2,963
Current portion of operating lease liabilities		291		286
Operating lease liabilities, net of current portion		2,612		2,685

The weighted-average remaining lease term for operating leases was 10 years for the three months ended June 30, 2025 and the fiscal year ended March 31, 2025. The weighted-average discount rate was 6.3% for the three months ended June 30, 2025 and the fiscal year ended March 31, 2025.

Future minimum lease payments under non-cancelable operating leases as of June 30, 2025, are as follows:


(In thousands)
Remainder of FY 2026	$	368
FY 2027		468
FY 2028		455
FY 2029		413
FY 2030		412
Thereafter		1,833
Total minimum lease payments		3,949
Less: effects of discounting		(1,046	)
Present value of future minimum lease payments	$	2,903