Contract Assets

12 Months Ended

Mar. 31, 2026

6. Contract Assets

During the years ended March 31, 2026, 2025, and 2024, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $3,590,000, $2,805,000, and $5,353,000, respectively.

In addition, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations and long-term core inventory deposits by $27,524,000 during the year ended March 31, 2026, in connection with the realignment of inventory at certain customers’ distribution centers. The Company did not reduce the carrying value of Remanufactured Cores held at customers’ locations in connection with the realignment of inventory at certain customers’ distribution centers during the years ended March 31, 2025 and 2024.

Contract assets are comprised of the following:

		March 31, 2026		March 31, 2025
Short-term contract assets
Cores expected to be returned by customers	$	21,294,000	$	17,732,000
Core premiums paid to customers		11,187,000		9,669,000
Finished goods premiums paid to customers		1,429,000		805,000
Upfront payments to customers		642,000		1,400,000
Total short-term contract assets	$	34,552,000	$	29,606,000

Long-term contract assets
Remanufactured cores held at customers' locations	$	297,592,000	$	301,388,000
Core premiums paid to customers		28,198,000		24,714,000
Finished goods premiums paid to customers		3,700,000		2,483,000
Upfront payments to customers		1,731,000		2,114,000
Long-term core inventory deposits		-		5,569,000
Total long-term contract assets	$	331,221,000	$	336,268,000