Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2
Leases
3 Months Ended
Jun. 30, 2022
Leases  
Leases

15. Leases

The Company leases offices and manufacturing facilities under various non-cancelable operating leases expiring at various times through Fiscal 2037. All of the leases require the Company to pay maintenance, insurance and property taxes. The lease agreements for primary office and manufacturing facilities provide for rent escalation over the lease term and renewal options for five-year periods. Lease expense is recognized on a straight-line basis over the term of the lease.

During the first quarter of Fiscal 2023, the Company has entered into several rental agreements, to rent used microturbine equipment from customers where that equipment was not currently in use.  The Company is then renting this equipment to end users as part of its Energy as a Service business. These agreements totaling approximately 11.8 MW of microturbines, have an average term of 36 months, and have a total commitment value of approximately $9.5 million.

The components of lease expense were as follows (in thousands):

Three Months Ended June 30,

    

2022

    

2021

Operating lease cost

$

365

    

$

252

Supplemental balance sheet information related to the leases was as follows (dollars in thousands):

June 30, 2022

March 31, 2022

Operating lease right-of-use assets

$

6,321

$

5,959

Total operating lease right-of-use assets

$

6,321

$

5,959

Operating lease liability, current

$

764

$

586

Operating lease liability, non-current

 

5,774

 

5,619

Total operating lease liabilities

$

6,538

$

6,205

Weighted average remaining lease life

 

7.77 years

 

8.35 years

Weighted average discount rate

12.00%

12.00%

The Company records its right-of-use assets within other assets (non-current) and its operating lease liabilities within current and long-term portion of notes payable and lease obligations.

Supplemental cash flow information related to the leases was as follows (in thousands):

Three Months Ended June 30,

2022

2021

Cash paid for amounts included in the measurement of lease liabilities

    

Operating cash flows from operating leases

$

393

$

273

Right-of-use assets obtained in exchange for lease obligations

Operating leases

$

512

$

Maturities of operating lease liabilities as of June 30, 2022 were as follows (in thousands):

Operating

Year Ending March 31,

    

Leases

2023 (remainder of fiscal year)

$

1,128

2024

1,529

2025

 

1,453

2026

 

1,243

2027

 

1,279

Thereafter

3,358

Total lease payments

$

9,990

Less: imputed interest

(3,452)

Present value of operating lease liabilities

$

6,538