Leases
The Company has non-cancelable operating leases for the rental of office space with various expiration dates through 2030.
The components of lease expense were as follows (in thousands):
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| Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
Operating lease cost, net of sublease income | $ | 1,867 | | | $ | 2,226 | | | $ | 2,711 | |
| Variable lease cost | 43 | | | 42 | | | 87 | |
| Total lease cost | $ | 1,910 | | | $ | 2,268 | | | $ | 2,798 | |
During fiscal 2025, the Company executed a sublease for a portion of its Curative office space in Irving, Texas. The sublease commenced in November 2024 and has a lease term of approximately 5.5 years. The Company has classified the sublease as an operating lease. Total lease payments under the sublease are $2.4 million over the sublease term.
Supplemental cash flow information related to leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
| Cash paid for amounts included in measurement of lease liabilities—Operating cash flows | $ | 2,687 | | | $ | 2,717 | | | $ | 2,314 | |
Supplemental balance sheet information related to leases was as follows:
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| Fiscal Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
| Weighted-average remaining lease term (in years) | 4.25 | | 5.17 | | 6.09 |
| Weighted-average discount rate | 4.19 | % | | 4.19 | % | | 4.18 | % |
Maturities of operating lease liabilities as of March 31, 2026 were as follows (in thousands):
| | | | | |
| Operating Leases |
| 2027 | $ | 2,497 | |
| 2028 | 2,605 | |
| 2029 | 2,667 | |
| 2030 | 2,706 | |
| 2031 | 679 | |
| |
| Total future lease payments | 11,154 | |
| Less: imputed interest | (969) | |
| Present value of lease liabilities | $ | 10,185 | |
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About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.