Leases

3 Months Ended

Jun. 30, 2024

Note 8. Leases

The Company's operating leases for its equipment and specialized spaces for company equipment have terms expiring at various dates through June 2033. Certain lease arrangements include renewal options and escalation clauses.

Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company's leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. Lease expense related to the net present value of payments is recognized on a straight-line basis over the lease term.

The key components of the Company's operating leases were as follows:


(In thousands)	Three Months Ended June 30, 2024		Three Months Ended June 30, 2023
Operating lease expense	$	10	$	16
Short-term lease expense		3		1
Total lease cost	$	13	$	17

Right-of-use assets and lease liabilities for operating leases were recorded in the condensed consolidated balance sheets as follows:


	(In thousands)
	June 30, 2024		March 31, 2024
Operating leases:
Operating lease right-of-use assets	$	553	$	65
Current portion of operating lease liabilities		124		-
Operating lease liabilities		436		65

The weighted-average remaining lease term for operating leases was 6.4 years and 2.7 years for the three months ended June 30, 2024 and 2023, respectively. The weighted-average discount rate was 6.11% and 6.50% for the three months ended June 30, 2024 and 2023, respectively.

Future minimum lease payments under non-cancelable operating leases as of June 30, 2024, are as follows:


(In thousands)
Remainder of FY 2025	$	106
FY 2026	131
FY 2027	101
FY 2028	90
FY 2029	83
Thereafter	165
Total minimum lease payments		676
Less: effects of discounting		(116	)
Present value of future minimum lease payments	$	560

The amounts recorded for operating lease expenses include short-term leases, which are immaterial.