AMERICAN SUPERCONDUCTOR CORP /DE/ Leases Disclosure

16. Leases

 

Operating Leases

 

All significant lease arrangements are recognized at lease commencement. Operating lease right–of-use assets and lease liabilities are recognized at commencement. The operating lease right-of-use asset includes any lease payments related to initial direct cost and prepayments and excludes any lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company enters into a variety of operating lease agreements through the normal course of its business, but primarily real estate leases to support its operations. The real estate lease agreements generally provide for fixed minimum rental payments and the payment of real estate taxes and insurance. Many of these real estate leases have one or more renewal options that allow the Company, at its discretion, to renew the lease for varying periods up to five years or to terminate the lease. Only renewal options or termination rights that the Company believed were likely to be exercised were included in the lease calculations.

 

The Company also enters into leases for vehicles, IT equipment and service agreements, and other leases related to its manufacturing operations that are also included in the right-of-use assets and lease liability accounts if they are for a term of longer than twelve months. However, many of these leases are either short-term in nature or immaterial. The Company has made the policy election to exclude short-term leases from the consolidated balance sheets. 

 

Supplemental balance sheet information related to leases at  March 31, 2026 and 2025 are as follows (in thousands):

 

		March 31, 2026				March 31, 2025
Leases:
Right-of-use assets - Operating			3,897				3,829
Total right-of-use assets		$	3,897			$	3,829
Lease liabilities - ST Operating			1,238				685
Lease liabilities - LT Operating			2,762				2,684
Total lease liabilities		$	4,000			$	3,369
Weighted-average remaining lease term			4.26				4.94
Weighted-average discount rate			14.13	%			14.94	%

 

The Company did not incur any finance lease costs and the costs related to the Company's operating leases for the fiscal years ended  March 31, 2026 and 2025, are as follows (in thousands):

 

		Fiscal year ended				Fiscal year ended				Fiscal year ended
		March 31, 2026				March 31, 2025				March 31, 2024
Operating Leases:
Operating lease costs - fixed			$ 1,690				$ 1,453				$ 1,023
Operating lease costs - variable			181				119				158
Short-term lease costs			167				153				149
Total lease costs			$ 2,038				$ 1,725				$ 1,330

 

The Company’s estimated minimum future lease obligations under the Company's leases are as follows: 

 

		Operating Leases
Year ended March 31,
2027		$	1,696
2028			1,443
2029			612
2030			423
2031			322
Thereafter			944
Total minimum lease payments			5,440
Less: interest			(1,439	)
Present value of lease liabilities		$	4,000