Leases

3 Months Ended

Jun. 30, 2026

Note 5

LEASES:

Under ASC Topic 842, “Leases”, lease expense is recognized as a single lease cost on a straight-line basis over the lease term. The lease term consists of non-cancelable periods and may include options to extend or terminate the lease term, when it is reasonably certain such options will be exercised.

The Company enters into contracts in the normal course of business and assesses whether any such contracts contain a lease. The Company determines if an arrangement is a lease at inception if it conveys the right to control the identified asset for a period of time in exchange for consideration. The Company classifies leases as operating or financing in nature and records the associated lease liability and right-of-use asset on its balance sheet. The lease liability represents the present value of future lease payments, net of lease incentives, discounted using an incremental borrowing rate, which is a management estimate based on the information available at the commencement date of a lease arrangement. With respect to operating lease arrangements, the Company accounts for lease components, and non-lease components that are fixed, as a single lease component. Non-lease components that are variable are expensed as incurred as in the statement of operations. The Company recognizes costs associated with lease arrangements having an initial term of 12 months or less (“short-term leases”) on a straight-line basis over the lease term; such short-term leases are not recorded on the balance sheet.

Balance sheet information related to our leases is presented below:

		As of
	Balance Sheet Location	June 30, 2026		March 31, 2026
Operating leases:
Right-of-use assets	Operating lease right-of-use assets	$	1,489,962	$	1,588,589

Right-of-use liability, current	Operating lease liabilities	$	459,893	$	449,056

Right-of-use lease liability, long-term	Operating lease liabilities, non-current	$	1,274,266	$	1,392,937

The lease expense for the three months ended June 30, 2026 and 2025 was $151,498 and $134,037, respectively, which was included in costs of product sold on the Company’s condensed statements of operations. In addition to the base rent, the Company pays insurance premiums and utility charges relating to the use of the premises. The Company considers its present facilities to be adequate for its present and anticipated future needs.

The basic minimum annual rental payments remaining on these leases was $1,946,764 as of June 30, 2026.

The weighted-average remaining lease term and the weighted average discount rate for operating leases were:

	As of
	June 30, 2026			March 31, 2026
Other information
Weighted-average discount rate – operating leases		6.00	%		6.00	%
Weighted-average remaining lease term – operating lease (in years)		3.8			4.0

The total remaining operating lease payments included in the measurement of lease liabilities on the Company’s condensed balance sheet as of June 30, 2026 was as follows:

For the years ended March 31,	Operating Lease Payments
(Nine months ending) March 31, 2027	$	412,536
2028		563,891
2029		408,429
2030		334,492
2031		227,416
Thereafter		-
Total gross operating lease payments		1,946,764
Less: imputed interest		(212,605	)
Total lease liabilities, reflecting present value of future minimum lease payments	$	1,734,159