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Note 11 - Leases

12 Months Ended

Mar. 31, 2025

Note 11 — Leases

On December 22, 2020, the Company acquired CPS which included the assumption of an operating lease for a 55,120 square foot light manufacturing facility located in Addison Illinois, which expired June 30, 2024. During the year ended March 31, 2025, CPS entered into a three year lease for office space in Palatine, Illinois.

The Company leases office locations with lease terms that are less than 12 months or are on month to month terms. Rent expense is recognized over the term of the lease on a straight-line basis. Rent expense for these leases totaled $0.5 million and $0.5 million for the year ended March 31, 2025 and 2024, respectively. Operating leases with lease terms of greater than 12 months are capitalized in Operating lease right-of-use assets and Operating lease liabilities in the consolidated balance sheet. Rent expense for these operating leases totaled $0.4 million and $0.4 million the years ended March 31, 2025 and 2024, respectively, which is included in general and administrative expenses in the consolidated statement of operations.

Operating lease costs for the years ended March 31, 2025 and 2024 consisted of the following (in thousands):

	*Year Ended March 31,*
	*2025*		*2024*
Fixed rent cost	$	456	$	324
Short term lease cost		88		596
Total operating lease cost	$	544	$	920

Supplemental balance sheet information related to leases was as follows (in thousands):

	*March 31,*		*March 31,*
Operating leases	*2025*		*2024*
Operating lease right-of-use assets	$	97	$	88

Operating lease liability, current	$	-	$	91
Operating lease liability, noncurrent		99		-
Total operating lease liabilities	$	99	$	91

The operating lease right-of-use assets are included in other assets in the March 31, 2025 and 2024 consolidated balance sheets, and operating lease liabilities are included in accounts payable and accrued liabilities and lease liabilities non-current in the March 31, 2025 and 2024 consolidated balance sheets.

Future maturities of operating lease liabilities as of March 31, 2025 were as follows (in thousands):

For Years Ending March 31,
2026	$	38
2027	$	37
2028	$	37
Total lease payments		112
Less: imputed interest		(13	)
Present value of operating lease liabilities	$	99

Significant determinations

Discount rate – the Company’s lease is discounted using the Company’s incremental borrowing rate of 8.5% as the rate implicit in the lease is not readily determinable.

Options – the lease term is the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs.

Lease and non-lease components – Non lease components were considered and determined not to be material.

PodcastOne arrangement

PodcastOne leases certain premises under a month-to-month operating lease. Rent expense for the operating lease totaled $0.3 million and $0.3 million for the year ended March 31, 2025 and March 31, 2024, respectively.