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Leases, and Related Party Transactions | 12 Months Ended
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Mar. 31, 2025
Leases [Abstract] |
Leases, and Related Party Transactions | Note 9. Leases, and Related Party Transactions 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 expenses were as follows:
|  | Year Ended March 31, |
(In thousands) |  | 2025 |  |  | 2024 |
Operating lease expense |  |  | 361 |  |  |  | 57 |
Short-term lease expense |  |  | 3 |  |  |  | 2 |
Total lease cost |  | $ | 364 |  |  | $ | 59 |
Right-of-use assets and lease liabilities for operating leases were recorded in the consolidated balance sheets as follows:
|  | (In thousands) |
|  | March 31, 2025 |  |  | March 31, 2024 |
Operating leases: |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 2,963 |  |  | $ | 65 |
Current portion of operating lease liabilities |  |  | 286 |  |  |  | - |
Operating lease liabilities, net of current portion |  |  | 2,685 |  |  |  | 65 |
The weighted-average remaining lease term for operating leases was 10.0 years and 2.0 years for the fiscal year ended March 31, 2025 and 2024, respectively. The weighted-average discount rate was 6.3% and 6.5% for the fiscal year ended March 31, 2025 and 2024, respectively. Future minimum lease payments under non-cancelable operating leases as of March 31, 2025, are as follows:
(In thousands) |  |  |
2026 |  | $ | 466 |
2030 |  |  | 468 |
2028 |  |  | 455 |
2029 |  |  | 413 |
2030 |  |  | 412 |
Thereafter |  |  | 1,833 |
Total minimum lease payments |  |  | 4,047 |
Less: effects of discounting |  |  | (1,076 | )
Present value of future minimum lease payments |  | $ | 2,971 |
The amounts recorded for operating lease expenses include short-term leases, which are immaterial. During the second quarter of fiscal year 2025, the Company recorded $56 thousand in impairment charges related to operating lease right-of-use assets which is included within general and administrative expenses during the fiscal year ended March 31, 2025 as the Company had planned to close its Clearwater office location in December 2024. On December 13, 2024, the Company entered into a termination of lease agreement in connection with the Clearwater office location with an effective termination date of January 31, 2025. After executing the termination of lease agreement, the Company recorded a Gain on Lease Settlement of $14 thousand, reflecting the difference between the lease liability for the Clearwater office location as of the date of the termination of lease agreement and the total amount due to the Lessor as a result of the termination. As previously stated, Amplex leases certain property (including an office building) and warehouse building from the Red Bug Entities (See Notes 1 and 2). The Red Bug Entities are considered related parties under ASC 850, Related Parties. The Red Bug Entities were created by, and are majority-owned by Amplex's Chief Executive Officer. The office building lease calls for monthly payments of approximately $13 thousand for the duration of the fifteen-year lease term that runs through December 14, 2031. The warehouse building lease calls for monthly payments of approximately $15 thousand, with annual price increases being indexed to the Consumer Price Index, for the duration of the fifteen year l ease term that runs through July 31, 2038. As of March 31, 2025 the related ROU assets and liabilities recorded on our consolidated balance sheets equaled approximately $3.0 million. Corresponding operating lease expenses of $0.3 million have been recorded within general and administrative expenses on the consolidated statements of operations for the fiscal year ended March 31, 2025. No balances or activity related to these leases are reflected in the March 31, 2024 consolidated balance sheet or the consolidated statements of operations for the fiscal year ended March 31, 2024 given Amplex was not consolidated within the Company financial statements during fiscal year ended March 31, 2024. On December 2, 2024 the Company entered into a lease agreement for a new office space in Omaha, Nebraska. The lease term commenced on March 1, 2025 and the total future minimum lease payments under the agreement, after the effect of discounting, are $100 thousand. T he sublandlord who entered into the sublease agreement with the Company, Boston Omaha Corporation, is also a related party to the Company under ASC 850. The CEO of the Company, and two other members of OMCC's Board of Directors also all serve on the Board of Directors of Boston Omaha Corporation. Further, the largest shareholder and CEO/Chairman of Boston Omaha Corporation is the largest shareholder of the outstanding common stock of OMCC through the shares beneficially owned. Management notes that all related party transactions and relationships, including this sublease agreement and resulting transactions, are subject to the Company's Related Party Transaction Policy and management believes that the transactions contemplated by this sublease were made at terms which approximate market, that are fair and reasonable to the Company and substantially the same as would apply if the other party was not a related party. The Company has no other material related party transactions requiring disclosure in these consolidated financial statements.

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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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