The Company primarily leases office and production facilities, warehouses, production equipment and vehicles. The Company assesses service arrangements to determine if an asset is explicitly or implicitly specified in the agreement and if the Company has the right to control the use of the identified asset.

The right-of-use asset is initially measured at cost, which is primarily comprised of the initial amount of the lease liability, plus initial direct costs and lease payments at or before the lease commencement date, less any lease incentives received, and is amortized on a straight-line basis over the remaining lease term. All right-of-use assets are reviewed periodically for impairment. The lease liability is initially measured at the present value of lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The Company elected to recognize expenses for leases with a term of 12 months or less on a straight-line basis over the lease term and not to recognize these short-term leases on the balance sheet. Leases have varying terms and certain of the Company’s lease arrangements provide it with the option to extend or to terminate the lease early.

Lease payments included in the measurement of the lease liability comprise (a) fixed payments, including in-substance fixed payments; (b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; (c) amounts expected to be payable under a residual value guarantee; and (d) the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

At inception or reassessment of a contract that contains lease and non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

A summary of lease right-of-use assets and liabilities are as follows:


	March 31,		March 31,
	2026		2025
Property, plant and equipment
Operating lease	$	20,180	$	4,556
Finance lease		480		-
	$	20,660	$	4,556
Other current liabilities:
Operating lease	$	8,367	$	7,463
Finance lease		5,960		9,079
Other long-term liabilities:
Operating lease		24,380		15,667
Finance lease		6,647		12,119
	$	45,354	$	44,328

The components of total lease expense are as follows:


	Years ended
	March 31,		March 31,
	2026		2025
Operating lease expense	$	7,591	$	12,068
Finance lease expense		762		1,422
	$	8,353	$	13,490

As of March 31, 2026, the minimum payments due for lease liabilities for each of the five succeeding fiscal years and thereafter are as follows:


	Operating Leases		Finance Leases
2027	$	11,211	$	6,401
2028		9,676		6,401
2029		6,604		151
2030		3,268		151
2031		3,312		-
Thereafter		10,640		-
Total lease payments	$	44,711	$	13,104
Less: Interest		11,964		497
Total lease liabilities	$	32,747	$	12,607

Supplemental information


	Years ended
	March 31,		March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,339	$	13,337
Operating cash flows from finance leases		762		1,422
Financing cash flows from finance leases		10,328		13,584

Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	16,061	$	1,810
Finance leases		517		-


	March 31,			March 31,
	2026			2025
Weighted-average remaining lease term:
Operating leases		5			3
Finance leases		1			2

Weighted-average discount rate
Operating leases		10.35	%		5.05	%
Finance leases		6.67	%		6.31	%