NOTE 8—LEASES

The Company has operating leases for corporate offices, and research and development facilities. The Company’s leases have remaining lease terms of 5 months to 98 months, some of which include options to extend for up to 10 years.

On June 6, 2024, the Company completed a sale and leaseback transaction pursuant to a previously executed purchase and sale agreement (the “Agreement”) with an unrelated party, as purchaser, for the sale of the Company’s 1213 Elko Drive property in Sunnyvale, California (the “Sunnyvale Property”) for a purchase price, net of closing and other expenses payable by the Company, of $11.3 million in cash. Concurrent with the sale, the Company entered into a lease agreement (the “Lease”) to lease all of the Sunnyvale Property that it occupied from the purchaser for an initial term of ten years from the closing of the sale of the Sunnyvale Property. The Company has the option to renew the term of the Lease for two additional five-year periods. Pursuant to the Lease, the Company is responsible for base rent initially at a rate of approximately $90,768 per month and the monthly operational expenses, such as maintenance, insurance, property taxes and utilities. The rental rate will increase three percent (3%) per year beginning on the first anniversary of the closing. The transaction was accounted for as a sale and leaseback and operating lease accounting classification. The Company recorded a gain of $5.7 million which was recorded in the gain from sale of assets in the Consolidated Statements of Operations in the quarter ended June 30, 2024.

Supplemental balance sheet information related to leases was as follows:

As of

As of

March 31, 2026

  ​ ​ ​

March 31, 2025

(In thousands)

Operating Leases

Operating lease right-of-use assets

$

8,264

$

9,547

Lease liabilities-current

$

1,488

$

1,642

Lease liabilities-non-current

6,978

8,001

Total operating lease liabilities

$

8,466

$

9,643

The following table provides the details of lease costs:

Year Ended March 31, 

2026

  ​ ​ ​

2025

(In thousands)

Operating lease cost

$

1,873

$

1,607

Short-term lease cost

28

33

$

1,901

$

1,640

The following table provides other information related to leases:

Year Ended March 31, 

2026

  ​ ​ ​

2025

(In thousands)

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

$

1,745

$

1,471

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

Operating leases

$

$

9,092

Weighted-average remaining lease term (years):

Operating leases

7.84

8.58

Weighted-average discount rate:

Operating leases

6.32%

6.24%

The following table provides the maturities of the Company’s operating lease liabilities as of March 31, 2026:

Operating Lease

Liabilities

Fiscal Year

(In thousands)

2027

$

1,528

2028

1,192

2029

1,220

2030

1,257

2031

1,294

Thereafter

4,358

Total undiscounted future cash flows

10,849

Less: Imputed interest

(2,383)

Present value of undiscounted future cash flows

$

8,466

Presentation on statement of financial position

Current

$

1,488

Non-current

$

6,978

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Historical Timeline

Fiscal YearFiled
2026Jun 5, 2026Showing above
2025Jun 18, 2025
2024Jun 13, 2024
2023Jun 28, 2023
2022Jun 29, 2022
2021Jun 4, 2021
2020Jun 5, 2020

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.