IGC Pharma, Inc. Leases Disclosure
NOTE 9 – LEASES
The Company has short-term leases primarily consisting of space with the remaining lease term being less than or equal to 12 months. The Company has one short-term lease as of March 31, 2025. The total short-term lease expense and cash paid for Fiscal 2025 and 2024 are approximately $39 thousand and $100 thousand, respectively.
The Company has operating leases primarily consisting of spaces with the lease term being more than or equal to 12 months. The Company has two operating leases as of March 31, 2025. The total operating leases expense and cash paid for Fiscal 2025 and 2024 are approximately $135 thousand and $141 thousand, respectively.
| (in thousands) Year Ended March 31, 2025 ($) | (in thousands) Year Ended March 31, 2024 ($) | |||||||
| Operating lease costs | 135 | 141 | ||||||
| Short term lease costs | 39 | 100 | ||||||
| Total lease costs | 174 | 241 | ||||||
Right of use assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows:
| (in thousands) | (in thousands) | |||||||
| Year Ended March 31, 2025 ($) | Year Ended March 31, 2024 ($) | |||||||
| Assets | ||||||||
| Operating lease asset | 98 | 198 | ||||||
| Total lease assets | 98 | 198 | ||||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accrued liabilities and others (current portion – operating lease liability) | ||||||||
| Noncurrent liabilities: | ||||||||
| Operating lease liability (non-current portion – operating lease liability) | 10 | 84 | ||||||
| Total lease liability | 103 | 208 | ||||||
| Supplemental cash flow and non-cash information related to leases is as follows: | (in thousands) Year Ended March 31, 2025 ($) | (in thousands) Year Ended March 31, 2024 ($) | ||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||
| –Operating cash flows from operating leases | 129 | 140 | ||||||
| Right-of-use assets obtained in exchange for operating lease obligations | 98 | 198 | ||||||
| As of March 31, 2025, the following table summarizes the maturity of our lease liabilities: | ||||
| Mar-26 | 96 | |||
| Mar-27 | 10 | |||
| Mar-28 | - | |||
| Mar-29 | - | |||
| Less: Present value discount | 3 | |||
| Total Lease liabilities | 103 | |||
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.