LEASES

12 Months Ended

Mar. 31, 2026

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.

On August 11, 2025, Ranor signed an agreement to lease a copier over a period of five years. The equipment was placed in service on October 1, 2025, and annual lease payments total approximately $7.

The following table lists our right-of-use assets and liabilities on our consolidated balance sheets on:


		March 31, 2026			March 31, 2025
Finance lease:
Right of use asset – operating lease		$	6,629		$	6,629
Right of use asset – finance leases			92			65
Amortization			(3,171)			(2,426)
Right of use asset, net		$	3,550		$	4,268
Lease liability – operating lease		$	3,639		$	4,398
Lease liability – finance leases			25			10
Total lease liability		$	3,664		$	4,408

Other supplemental information regarding our leases is contained in the following tables:


Components of lease amortization for the year ended:		March 31, 2026			March 31, 2025
Operating lease amortization		$	733		$	700
Finance lease amortization		$	12		$	9
Finance lease interest		$	1		$	—


Weighted average lease term and discount rate at:		March 31, 2026		March 31, 2025
Lease term (years) – operating lease		4.50		5.25
Lease term (years) – finance lease		4.08		1.00
Lease rate – operating lease		4.5	%	4.5	%
Lease rate – finance lease		7.5	%	3.2	%


Supplemental cash flow information related to leases for the year ended:		March 31, 2026			March 31, 2025
Cash used in operating activities		$	939		$	939
Cash used in financing activities		$	12		$	9

Maturities of lease liabilities on March 31, 2026 for the following periods:


April 1, 2026 – March 31, 2027	$	945
April 1, 2027 – March 31, 2028		945
April 1, 2028 – March 31, 2029		945
April 1, 2029 – March 31, 2030		945
April 1, 2030 – September 30, 2030		162
Total lease payments	$	3,942
Less: imputed interest		278
Total	$	3,664