| Leases |
Note 15 - Leases
The Company has operating and finance leases for real estate, computer equipment, and furniture and fixtures. Assets acquired under finance leases are recorded in “Property and equipment, net” in the carve-out consolidated balance sheets and were $134 and $247 as of March 31, 2026 and March 31, 2025, respectively. Accumulated depreciation associated with finance lease assets was $1,656 and $1,632 as of March 31, 2026 and March 31, 2025, respectively.
Lease cost recognized in our carve-out consolidated statements of operations is summarized as follows:
| Schedule of lease cost |
|
|
|
|
|
|
|
|
| |
|
Year Ended
March 31, |
|
| |
|
2026 |
|
|
2025 |
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
| Amortization of lease assets (Note a) |
|
$ |
192 |
|
|
|
303 |
|
| Interest on lease liabilities (Note b) |
|
|
28 |
|
|
|
39 |
|
| Operating lease cost (Note a) |
|
|
4,026 |
|
|
|
3,376 |
|
| Short-term and variable lease cost (Note a) |
|
|
113 |
|
|
|
61 |
|
| Total lease cost |
|
$ |
4,359 |
|
|
|
3,779 |
|
|
a) |
Included in “cost of revenue” and “selling, general and administrative expenses” in the Consolidated Statements of Comprehensive Income / (loss). |
|
b) |
Included in “interest income (expense), net” in the Consolidated Statements of Comprehensive Income / (loss). |
Cash flows arising from lease transactions were as follows:
| Schedule of cash flows arising lease transactions |
|
|
|
|
|
|
|
|
| |
|
Year Ended
March 31, |
|
| |
|
2026 |
|
|
2025 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
115 |
|
|
|
3,555 |
|
| Operating cash flows from finance leases |
|
$ |
28 |
|
|
|
39 |
|
| Financing cash flows from finance leases |
|
$ |
176 |
|
|
|
335 |
|
Other information about lease amounts recognized in the consolidated financial statements is summarized as follows:
| Schedule of other information about lease amounts |
|
|
|
|
|
|
|
|
| |
|
Year Ended
March 31, |
|
| |
|
2026 |
|
|
2025 |
|
| Weighted-average remaining lease term (years): |
|
|
|
|
|
|
|
|
| Operating lease |
|
|
3.24 |
|
|
|
3.97 |
|
| Finance lease |
|
|
1.93 |
|
|
|
1.60 |
|
| Weighted-average discount rate: |
|
|
|
|
|
|
|
|
| Operating lease |
|
|
9.35 |
% |
|
|
10.81 |
% |
| Finance lease |
|
|
10.73 |
% |
|
|
13.54 |
% |
As of March 31, 2026, the Company’s lease liabilities were as follows:
| Schedule of lease liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Operating |
|
|
Finance |
|
|
Total |
|
| Gross lease liabilities |
|
$ |
10,365 |
|
|
$ |
198 |
|
|
$ |
10,563 |
|
| Less: imputed interest |
|
|
1,313 |
|
|
|
26 |
|
|
|
1,339 |
|
| Present value of lease liabilities |
|
|
9,052 |
|
|
|
172 |
|
|
|
9,224 |
|
| Less: current portion of lease liabilities |
|
|
2,694 |
|
|
|
89 |
|
|
|
2,783 |
|
| Total long-term lease liabilities |
|
$ |
6,358 |
|
|
$ |
83 |
|
|
$ |
6,441 |
|
Future minimum annual lease payments under the Company’s operating and finance leases as of March 31, 2026 are as follows:
| Schedule of annual lease payments |
|
|
|
|
|
|
|
|
| |
|
Operating |
|
|
Finance |
|
| 2027 |
|
$ |
3,608 |
|
|
$ |
124 |
|
| 2028 |
|
|
3,076 |
|
|
|
49 |
|
| 2029 |
|
|
2,546 |
|
|
|
25 |
|
| 2030 |
|
|
1,135 |
|
|
|
- |
|
| Thereafter |
|
|
- |
|
|
|
- |
|
| Total lease payments |
|
$ |
10,365 |
|
|
$ |
198 |
|
| Less: Imputed interest |
|
|
1,313 |
|
|
|
26 |
|
| Total |
|
$ |
9,052 |
|
|
$ |
172 |
|
|