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Note E - Leases

6 Months Ended

Sep. 30, 2023

NOTE E — LEASES

The Company was assigned an operating lease associated with the real property and leasehold improvements for the Granite City, IL facility acquired from Plateplus pursuant to the transaction disclosed in Note B. The lease contained an expiration date of August 31, 2023 and the Company is in the process of renewing the lease. The lease calls for quarterly rental payments of approximately $19,000. The Company recognized an initial right-of-use ("ROU") asset and lease liability of approximately $1.2 million during the June 30, 2022 quarter related to this lease. The anticipated renewal of this lease is included in the ROU asset and lease liability calculation. The Company’s lease of its office space in Longview, Texas is the only other operating lease included in the Company's ROU assets and lease liabilities. The lease calls for monthly rent payments of approximately $5,000 and expires on April 30, 2024. The Company’s other operating leases for items such as IT equipment and storage space are either short-term in nature or immaterial.

In October 2019, the Company acquired a new heavy-duty forklift under a 5-year finance lease arrangement with a financed amount of approximately $0.5 million and a monthly payment of approximately $9,000.

The components of expense related to leases for the three and six months ended September 30, 2023 and 2022 are as follows (in thousands):

	*Three Months Ended*				*Six Months Ended*
	*September 30,*				*September 30,*
	*2023*		*2022*		*2023*		*2022*
Finance lease – amortization of ROU asset	$	26	$	26	$	52	$	52
Finance lease – interest on lease liability		1		1		2		2
Operating lease expense		34		34		68		61
	$	61	$	61	$	122	$	115

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of September 30, 2023 and March 31, 2023 (in thousands):

	*September 30, 2023*		*March 31, 2023*		*Balance Sheet Classification*
Assets
Operating lease right-of-use asset	$	1,219	$	1,270	Operating lease right-of-use asset
Finance lease right-of-use asset		417		430	Property, plant & equipment
Total right-of-use assets	$	1,636	$	1,700
Liabilities
Operating lease liability, current	$	80	$	101	Accrued expenses
Finance lease liability, current		108		107	Current portion of finance lease
Operating lease liability, non-current		1,139		1,168	Other non-current liabilities
Finance lease liability, non-current		—		54	Other non-current liabilities
Total lease liabilities	$	1,327	$	1,430

As of September 30, 2023, the weighted-average remaining lease term was 19.4 years for operating leases and 1.0 years for finance leases. The weighted average discount rate was 2.6% for operating leases and 1.9% for finance leases.

Maturities of lease liabilities as of September 30, 2023 were as follows (in thousands):

	*Operating Leases*			*Finance Leases*
Fiscal 2024 (remainder of fiscal year)		67			55
Fiscal 2025		80			54
Fiscal 2026		75			—
Fiscal 2027		75			—
Fiscal 2028 and beyond		1,237			—
Total undiscounted lease payments	$	1,534		$	109
Less: imputed interest		(315	)		(1	)
Present value of lease liability	$	1,219		$	108