| LEASES |
NOTE 14 – LEASES Stadco is a party to an amended building and property operating lease and recorded a right of use asset and liability of $6,629. Monthly base rent for the property is $83 per month. The term of the lease will expire on June 30, 2030, and the lessee has no right of renewal beyond the expiration date. The lease contains customary default provisions allowing the landlord to terminate the lease if the lessee fails to remedy a breach of its obligations under the lease within the period specified in the lease, or upon certain events of bankruptcy or seizure or attachment of the lessee’s assets or interest in the lease. The lease also contains other customary provisions for real property leases of this type. The following table lists our right-of-use assets and liabilities on our consolidated balance sheets at: | | | | | | | | | March 31, 2025 | | March 31, 2024 | Finance lease: | | | | | | | Right of use asset – operating lease | | $ | 6,629 | | $ | 6,629 | Right of use asset – finance leases | | | 65 | | | 65 | Amortization | | | (2,426) | | | (1,717) | Right of use asset, net | | $ | 4,268 | | $ | 4,977 | Lease liability – operating lease | | $ | 4,398 | | $ | 5,125 | Lease liability – finance leases | | | 10 | | | 19 | Total lease liability | | $ | 4,408 | | $ | 5,144 |
Other supplemental information regarding our leases is contained in the following tables: | | | | | | | Components of lease expense for the year ended: | | March 31, 2025 | | March 31, 2024 | Operating lease amortization | | $ | 700 | | $ | 668 | Finance lease amortization | | $ | 9 | | $ | 15 | Finance lease interest | | $ | — | | $ | 1 |
| | | | | | Weighted average lease term and discount rate at: | | March 31, 2025 | | March 31, 2024 | | Lease term (years) – operating lease | | 5.25 | | 6.25 | | Lease term (years) – finance lease | | 1.00 | | 2.00 | | Lease rate – operating lease | | 4.5 | % | 4.5 | % | Lease rate – finance lease | | 3.2 | % | 3.2 | % |
| | | | | | | Supplemental cash flow information related to leases for the year ended: | | March 31, 2025 | | March 31, 2024 | Cash used in operating activities | | $ | 939 | | $ | 939 | Cash used in financing activities | | $ | 9 | | $ | 17 |
Maturities of lease liabilities on March 31, 2025 for the next five years and thereafter: | | | | April 1, 2025 – March 31, 2026 | | $ | 949 | April 1, 2026 – March 31, 2027 | | | 939 | April 1, 2027 – March 31, 2028 | | | 939 | April 1, 2028 – March 31, 2029 | | | 939 | April 1, 2029 – March 31, 2030 | | | 939 | Thereafter | | | 155 | Total lease payments | | $ | 4,860 | Less: imputed interest | | | 452 | Total | | $ | 4,408 |
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