Note 6 - Operating Leases

9 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

6. OPERATING LEASES

The Company leases facilities, equipment and land under non-cancelable operating leases expiring through 2037. One of its facility leases contains price escalations and a renewal option for five years. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are based on the present value of lease payments over the lease term, using the Company’s incremental borrowing rate based on the information available at recognition, and the Company has elected to exclude non-lease components. The Company also leases two 84-month solar leases for two of its buildings, and a 48-month lease for equipment, which are included in the right-of-use assets and liabilities. At December 31, 2024, the weighted average remaining lease terms of all operating leases was 8.7 years, the weighted average discount rate was 7.4%, and for the nine months ended December 31, 2024 and 2023, the operating lease costs was $639,000 and $615,000, respectively.

Supplemental balance sheet information related to leases consists of the following as of:

Operating leases	Balance Sheet Classification	December 31, 2024			March 31, 2024
		(in thousands)
Right-of-use assets	Operating lease right-of-use assets	$	6,167		$	6,149
Accumulated lease amortization	Operating lease right-of-use assets		(2,135	)		(1,865	)
Total right-of-use assets		$	4,032		$	4,284
Current lease liabilities	Operating lease obligations	$	545		$	530
Non-current lease liabilities	Long-term operating lease obligations		3,507			3,744
Total lease liabilities		$	4,052		$	4,274

Maturities of lease liabilities at December 31, 2024 are as follows:

Payments	(in thousands)
Remainder of 2025	$	205
2026		823
2027		803
2028		456
2029		376
Thereafter		2,832
Total undiscounted lease payments		5,495
Less: present value discount		(1,443	)
Total lease liability balance	$	4,052