v3.26.3
Derivative Instruments
 3 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments

 

Note 15 – Derivative Instruments

 

The Company’s derivative commodity instruments principally include commodity futures and options contracts. The Company’s derivatives are not material to the Company’s financial position, results of operations or liquidity. The Company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodity derivative activities. The Company applies fair valuation accounting to commodity transactions to manage the market price risk associated with forecasted sales of commodity.

 

The Company has also separated the conversion feature (embedded derivative liability) on convertible notes. (see Note 12 for further information)

 

Derivative instruments measured at fair value as of June 30, 2026 and March 31, 2026, and their classification in the Consolidated Balance Sheets and Consolidated Statements of Operations are as follows:

 

(a) Consolidated Balance Sheets: Fair value of derivatives

 

Type of Derivative Contract   Balance Sheet
classification		   As of
June 30,
2026		   As of
March 31,
2026
Commodity   Derivative asset   $   144   $ 1  
Conversion feature on convertible notes (see Note 12)   Derivative liability   $   —   $ (26,244)  

 

(b) Consolidated Statements of Operations: The effect of derivatives [Gain (Loss)]

 

Type of Derivative Contract  

Statement of
Operations
classification 

   Three months ended
June 30,
2026		   Three months ended
June 30,
2025
Commodity (fair value changes)   Fair value gain on derivatives   $   383   $ 21  
Commodity (transaction cost)   Selling, general, & administrative expenses   $   (20)   $ (9)  
Conversion feature on convertible notes (fair value changes) (see Note 12)   Fair value gain on derivatives   $   2,096   $ —