Contract Assets

6 Months Ended

Sep. 30, 2025

5. Contract Assets

During the three months ended September 30, 2025 and 2024, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $1,225,000 and $1,164,000, respectively, for the revaluation of cores that are part of the finished goods on the customers’ shelves to the lower of cost or net realizable value. During the six months ended September 30, 2025 and 2024, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $2,251,000 and $1,558,000, respectively, for the revaluation of cores that are part of the finished goods on the customers’ shelves to the lower of cost or net realizable value.

In addition, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations and long-term core inventory deposits by $14,154,000 during the three and six months ended September 30, 2025, in connection with the realignment of inventory at certain customer distribution centers.

Contract assets are comprised of the following:


		September 30, 2025		March 31, 2025
Short-term contract assets
Cores expected to be returned by customers	$	17,554,000	$	17,732,000
Core premiums paid to customers		10,449,000		9,669,000
Upfront payments to customers		1,300,000		1,400,000
Finished goods premiums paid to customers		1,003,000		805,000
Total short-term contract assets	$	30,306,000	$	29,606,000

Long-term contract assets
Remanufactured cores held at customers' locations	$	301,259,000	$	301,388,000
Core premiums paid to customers		25,892,000		24,714,000
Long-term core inventory deposits		-		5,569,000
Finished goods premiums paid to customers		2,697,000		2,483,000
Upfront payments to customers		1,496,000		2,114,000
Total long-term contract assets	$	331,344,000	$	336,268,000