LEASES

3 Months Ended

Jun. 30, 2026

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.

In June 2026 Ranor signed an agreement to lease four copiers over a period of five-years. The equipment was placed in service July 2026. We pay $2 each month in total under two separate finance leases.

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

	June 30, 2026		March 31, 2026
Right of use asset – operating lease	$	6,629	$	6,629
Right of use asset – finance leases		94		92
Amortization		(3,316)		(3,171)
Right of use assets, net	$	3,407	$	3,550
Lease liability – operating lease	$	3,443	$	3,639
Lease liability – finance leases		71		25
Total lease liability	$	3,514	$	3,664

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

Components of lease expense for the three months ended:	June 30, 2026		June 30, 2025
Operating lease amortization	$	189	$	180
Finance lease amortization	$	3	$	2
Finance lease interest	$	1	$	—

Weighted average lease term and discount rate on:	June 30, 2026		June 30, 2025
Lease term (years) – operating lease	4.25		5.00
Lease term (years) – finance lease	4.75		0.75
Lease rate – operating lease	4.5	%	4.5	%
Lease rate – finance lease	7.3	%	3.2	%

Supplemental cash flow information related to leases for the three months ended :	June 30, 2026		June 30, 2025
Cash used in operating activities	$	235	$	235
Cash used in financing activities	$	1	$	2

Maturities of lease liabilities on June 30, 2026 for the next five years:

July 1, 2026 – June 30, 2027	$	957
July 1, 2027 – June 30, 2028		957
July 1, 2028 – June 30, 2029		957
July 1, 2029 – June 30, 2030		957
July 1, 2030 – June 30, 2031		12
Total lease payments	$	3,840
Less: imputed interest		326
Total	$	3,514