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Leases | 9 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | Note 9. 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 expenses were as follows:
|  | Three Months Ended December 31, |  |  | Nine Months Ended December 31, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Operating lease expense |  | $ | 108 |  |  | $ | 16 |  |  |  | 251 |  |  |  | 48 |
Short-term lease expense |  |  | 6 |  |  |  | 1 |  |  |  | 9 |  |  |  | 3 |
Total lease cost |  | $ | 114 |  |  | $ | 17 |  |  | $ | 260 |  |  | $ | 51 |
Right-of-use assets and lease liabilities for operating leases were recorded in the condensed consolidated balance sheets as follows:
|  | (In thousands) |
|  | December 31, 2024 |  |  | March 31, 2024 |
Operating leases: |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 2,925 |  |  | $ | 65 |
Current portion of operating lease liabilities |  |  | 267 |  |  |  | - |
Operating lease liabilities |  |  | 2,688 |  |  |  | 65 |
The weighted-average remaining lease term for operating leases was 10.4 years and 2.4 years for the nine months ended December 31, 2024 and 2023, respectively. The weighted-average discount rate was 6.3% and 6.5% for the nine months ended December 31, 2024 and 2023, respectively. Future minimum lease payments under non-cancelable operating leases as of December 31, 2024, are as follows:
(In thousands) |  |  |
Remainder of FY 2025 |  | $ | 131 |
FY 2026 |  |  | 430 |
FY 2027 |  |  | 431 |
FY 2028 |  |  | 421 |
FY 2029 |  |  | 413 |
Thereafter |  |  | 2,246 |
Total minimum lease payments |  |  | 4,072 |
Less: effects of discounting |  |  | (1,117 | )
Present value of future minimum lease payments |  | $ | 2,955 |
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. We consider our leasing arrangements with the Red Bug Entities to be arms-length transactions. 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 lease term that runs through July 31, 2038. As of December 31, 2024, the connected ROU assets and liabilities recorded on our condensed consolidated balance sheets equaled approximately $2,462 thousand. Corresponding operating lease expenses of $83 thousand and $192 thousand have been recorded within general and administrative expenses on the condensed consolidated statements of operations for the three and nine months ended December 31, 2024, respectively. No balances or activity related to these leases are reflected in the December 31, 2023 condensed consolidated balance sheet or the condensed consolidated statements of operations for the three and nine months ended December 31, 2023 given Amplex was not consolidated within the Company financial statements during fiscal year 2024. The Company has no other material related party transactions requiring disclosure in these condensed consolidated financial statements. 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 nine months ended December 31, 2024 as the Company had planned to close their 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 $0 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. On December 2, 2024 the Company entered into a lease agreement for a new office space in Omaha, Nebraska. The lease term will commence on March 1, 2025 and the total future minimum lease payments under the agreement, excluding the effect of discounting, are expected to be $112 thousand.

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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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