LEASES

9 Months Ended

Dec. 31, 2025

LEASES

LEASES

NOTE 13 - LEASES

Stadco is a party to an amended building and property operating lease and a right of use asset. Monthly base rent for the property is $78 per month. The term of the lease will expire on June 30, 2030, and the lessee has no right of renewal beyond the expiration date. The lease contains customary default provisions allowing the landlord to terminate the lease if the lessee fails to remedy a breach of its obligations under the lease within the period specified in the lease, or upon certain events of bankruptcy or seizure or attachment of the lessee’s assets or interest in the lease. The lease also contains other customary provisions for real property leases of this type.

On August 11, 2025, Ranor signed an agreement to lease a copier over a period of five-years. The equipment was placed in service on October 1, 2025 and annual lease payments total approximately $7.

The following table lists our right-of-use assets and liabilities on our condensed consolidated balance sheets at:

	December 31, 2025		March 31, 2025
Right of use asset – operating lease	$	6,629	$	6,629
Right of use asset – finance leases		92		65
Amortization		(2,981)		(2,426)
Right of use assets, net	$	3,740	$	4,268
Lease liability – operating lease	$	3,832	$	4,398
Lease liability – finance leases		28		10
Total lease liability	$	3,860	$	4,408

Other supplemental information regarding our leases is contained in the following tables:

Components of lease expense for the nine months ended:	December 31, 2025		December 31, 2024
Operating lease amortization	$	547	$	522
Finance lease amortization	$	8	$	6
Finance lease interest	$	1	$	—

Weighted average lease term and discount rate at:	December 31, 2025		December 31, 2024
Lease term (years) – operating lease	4.50		5.50
Lease term (years) – finance lease	4.36		1.25
Lease rate – operating lease	4.5	%	4.5	%
Lease rate – finance lease	7.5	%	3.2	%

Supplemental cash flow information related to leases for the nine months ended :	December 31, 2025		December 31, 2024
Cash used in operating activities	$	704	$	704
Cash used in financing activities	$	8	$	7

Maturities of lease liabilities on December 31, 2025 for the next five years:

January 1, 2026 – December 31, 2026	$	948
January 1, 2027 – December 31, 2027		945
January 1, 2028 – December 31, 2028		945
January 1, 2029 – December 31, 2029		945
January 1, 2030 – December 31, 2030		397
Total lease payments	$	4,180
Less: imputed interest		320
Total	$	3,860