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Note 15 - Leases | 9 Months Ended
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Dec. 31, 2023
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | 15. Leases The Company determines whether a contract is or contains a lease at inception of a contract. The Company defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property or equipment (an identified asset) for a period of time in exchange for consideration. Control over the use of the identified asset means that the Company has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. The discount rate was calculated using an incremental borrowing rate based on an assessment prepared by the Company through the use of Company credit ratings, consideration of its lease populations potential risk to its total capital structure, and a market rate for a collateralized loan for its risk profile, calculated by a third party. Operating Leases All significant lease arrangements are recognized at lease commencement. Operating lease right–of-use assets and lease liabilities are recognized at commencement. The operating lease right-of-use asset includes any lease payments related to initial direct cost and prepayments and excludes any lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company enters into a variety of operating lease agreements through the normal course of its business, but primarily real estate leases to support its operations. The real estate lease agreements generally provide for fixed minimum rental payments and the payment of real estate taxes and insurance. Many of these real estate leases have one or more renewal options that allow the Company, at its discretion, to renew the lease for varying periods up to five years or to terminate the lease. Only renewal options or termination rights that the Company believed were likely to be exercised were included in the lease calculations. The Company also enters into leases for vehicles, IT equipment and service agreements, and other leases related to its manufacturing operations that are also included in the right-of-use assets and lease liability accounts if they are for a term of longer than twelve months. However, many of these leases are either short-term in nature or immaterial. The Company has made the policy election to exclude short-term leases from the condensed consolidated balance sheet. Finance﻿ Leases As of December 31, 2023, the right-of-use asset related to the finance lease, net of accumulated amortization is $0.0 million, and is included in the property and equipment, net on the Company's condensed consolidated balance sheet. Finance lease right-of-use assets and lease liabilities are recognized similar to an operating lease, at the lease commencement date or the date the lessor makes the leased asset available for use. Finance lease right-of-use assets are generally amortized on a straight-line basis over the lease term, and the carrying amount of the finance lease liabilities are (1) accreted to reflect interest using the incremental borrowing rate if the rate implicit in the lease is not readily determinable, and (2) reduced to reflect lease payments made during the period. Amortization expense for finance lease right-of-use assets and interest accretion on finance lease liabilities are recorded to depreciation expense and interest expense, respectively in the Company's condensed consolidated statement of operations. Supplemental balance sheet information related to leases at December 31, 2023, and March 31, 2023 are as follows (in thousands):
|  | December 31, 2023 |  |  | March 31, 2023 |
Leases: |  |  |  |  |  |  |  |
Right-of-use assets - Financing |  | $ | - |  |  |  | 1 |
Right-of-use assets - Operating |  |  | 2,401 |  |  |  | 2,857 |
Total right-of-use assets |  |  | 2,401 |  |  |  | 2,858 |
Lease liabilities - ST Financing |  | $ | - |  |  |  | 1 |
Lease liabilities - ST Operating |  |  | 680 |  |  |  | 807 |
Lease liabilities - LT Operating |  |  | 1,861 |  |  |  | 2,184 |
Total lease liabilities |  | $ | 2,541 |  |  |  | 2,992 |
Weighted-average remaining lease term |  |  | 3.5 years |  |  |  | 3.95 years |
Weighted-average discount rate |  |  | 8.68 | % |  |  | 6.46 | %
The costs related to the Company's finance lease are not material. The costs related to the Company's operating leases for the three and nine months ended December 31, 2023 and 2022 are as follows (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | December 31, 2023 |  |  | December 31, 2023 |
Operating Leases: |  |  |  |  |  |  |  |
Operating lease costs - fixed |  | $ | 303 |  |  | $ | 817 |
Operating lease costs - variable |  |  | 39 |  |  |  | 119 |
Short-term lease costs |  |  | 37 |  |  |  | 111 |
Total lease costs |  | $ | 379 |  |  | $ | 1,047 |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | December 31, 2022 |  |  | December 31, 2022 |
Operating Leases: |  |  |  |  |  |  |  |
Operating lease costs - fixed |  | $ | 256 |  |  | $ | 765 |
Operating lease costs - variable |  |  | 41 |  |  |  | 118 |
Short-term lease costs |  |  | 30 |  |  |  | 92 |
Total lease costs |  | $ | 327 |  |  | $ | 975 |
The Company’s estimated minimum future lease obligations under the Company's leases are as follows (in thousands):
|  | Leases |
Year ending March 31, |  |  |  |
2024 |  | $ | 234 |
2025 |  |  | 841 |
2026 |  |  | 793 |
2027 |  |  | 646 |
2028 |  |  | 392 |
Thereafter |  |  | 15 |
Total minimum lease payments |  |  | 2,921 |
Less: interest |  |  | (380 | )
Present value of lease liabilities |  |  | 2,541 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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