MOTORCAR PARTS OF AMERICA INC, 10-Q filed on 8/11/2025
Quarterly Report
v3.25.2
Cover - shares
 3 Months Ended
Jun. 30, 2025
Aug. 04, 2025
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
Amendment Flag false  
Document Period End Date Jun. 30, 2025  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Information [Line Items]    
Entity Registrant Name MOTORCAR PARTS OF AMERICA, INC.  
Entity Central Index Key 0000918251  
Entity File Number 001-33861  
Entity Tax Identification Number 11-2153962  
Entity Incorporation, State or Country Code NY  
Current Fiscal Year End Date --03-31  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Contact Personnel [Line Items]    
Entity Address, Address Line One 2929 California Street  
Entity Address, City or Town Torrance  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 90503  
Entity Phone Fax Numbers [Line Items]    
City Area Code 310  
Local Phone Number 212-7910  
Entity Listings [Line Items]    
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol MPAA  
Security Exchange Name NASDAQ  
Entity Common Stock, Shares Outstanding   19,352,135
v3.25.2
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Current assets:    
Cash and cash equivalents $ 12,479,000 $ 9,429,000
Short-term investments 2,011,000 1,881,000
Accounts receivable — net 85,532,000 91,064,000
Inventory — net 366,772,000 359,669,000
Contract assets 30,329,000 29,606,000
Prepaid expenses and other current assets 22,259,000 19,822,000
Total current assets 519,382,000 511,471,000
Plant and equipment — net 33,194,000 31,990,000
Operating lease assets 68,281,000 66,603,000
Long-term deferred income taxes 5,504,000 4,569,000
Long-term contract assets 340,529,000 336,268,000
Goodwill and intangible assets — net 3,693,000 3,757,000
Other assets 2,767,000 2,978,000
TOTAL ASSETS 973,350,000 957,636,000
Current liabilities:    
Accounts payable and accrued liabilities 176,269,000 172,117,000
Customer finished goods returns accrual 32,926,000 34,411,000
Contract liabilities 49,396,000 38,158,000
Revolving loan 86,856,000 90,787,000
Other current liabilities 4,973,000 5,570,000
Operating lease liabilities 10,196,000 9,982,000
Total current liabilities 360,616,000 351,025,000
Convertible notes, related party $ 40,844,000 $ 35,207,000
Notes Payable, Noncurrent, Related Party, Type [Extensible Enumeration] Related Party [Member] Related Party [Member]
Long-term contract liabilities $ 240,021,000 $ 241,404,000
Long-term deferred income taxes 488,000 362,000
Long-term operating lease liabilities 63,056,000 65,308,000
Other liabilities 8,212,000 6,631,000
Total liabilities 713,237,000 699,937,000
Commitments and contingencies
Shareholders' equity:    
Preferred stock 0 0
Common stock; par value $.01 per share, 50,000,000 shares authorized;19,352,135 and 19,435,706 shares issued and outstanding at June 30, 2025 and March 31, 2025, respectively 194,000 194,000
Additional paid-in capital 232,897,000 234,413,000
Retained earnings 23,075,000 20,033,000
Accumulated other comprehensive income 3,947,000 3,059,000
Total shareholders' equity 260,113,000 257,699,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 973,350,000 957,636,000
Series A Junior Participating Preferred Stock [Member]    
Shareholders' equity:    
Preferred stock $ 0 $ 0
v3.25.2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares
Jun. 30, 2025
Mar. 31, 2025
Preferred stock, par value (in Dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 5,000,000 5,000,000
Preferred stock, issued (in shares) 0 0
Common stock, par value (in Dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 50,000,000 50,000,000
Common stock, issued (in shares) 19,352,135 19,435,706
Common stock, outstanding (in shares) 19,352,135 19,435,706
Series A Junior Participating Preferred Stock [Member]    
Preferred stock, par value (in Dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 20,000 20,000
Preferred stock, issued (in shares) 0 0
v3.25.2
Condensed Consolidated Statements of Operations - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Condensed Consolidated Statements of Operations [Abstract]    
Net sales $ 188,364,000 $ 169,887,000
Cost of goods sold 154,447,000 140,713,000
Gross profit 33,917,000 29,174,000
Operating expenses:    
General and administrative 12,680,000 16,670,000
Sales and marketing 6,210,000 5,449,000
Research and development 3,306,000 2,433,000
Foreign exchange impact of lease liabilities and forward contracts (8,348,000) 11,078,000
Total operating expenses 13,848,000 35,630,000
Operating income (loss) 20,069,000 (6,456,000)
Other expenses:    
Interest expense, net 12,812,000 14,387,000
Change in fair value of compound net derivative liability 1,790,000 (2,580,000)
Total other expenses 14,602,000 11,807,000
Income (loss) before income tax expense (benefit) 5,467,000 (18,263,000)
Income tax expense (benefit) 2,425,000 (178,000)
Net income (loss) $ 3,042,000 $ (18,085,000)
Basic net income (loss) per share (in Dollars per share) $ 0.16 $ (0.92)
Diluted net income (loss) per share (in Dollars per share) $ 0.15 $ (0.92)
Weighted average number of shares outstanding:    
Basic (in Shares) 19,369,060 19,674,539
Diluted (in Shares) 19,917,663 19,674,539
v3.25.2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract]    
Net income (loss) $ 3,042,000 $ (18,085,000)
Other comprehensive income (loss), net of tax:    
Foreign currency translation gain (loss) 888,000 (675,000)
Total other comprehensive income (loss), net of tax 888,000 (675,000)
Comprehensive income (loss) $ 3,930,000 $ (18,760,000)
v3.25.2
Condensed Consolidated Statements of Shareholders’ Equity - USD ($)
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Beginning balance at Mar. 31, 2024 $ 197,000 $ 236,255,000 $ 39,503,000 $ 9,155,000 $ 285,110,000
Beginning balance (in Shares) at Mar. 31, 2024 19,662,380        
Share-based compensation expense $ 0 1,000,000 0 0 1,000,000
Issuance of common stock upon vesting of RSUs and PSUs, net of shares withheld for employee taxes $ 1,000 (182,000) 0 0 (181,000)
Issuance of common stock upon vesting of RSUs and PSUs, net of shares withheld for employee taxes (in Shares) 91,205        
Foreign currency translation $ 0 0 0 (675,000) (675,000)
Net income (loss) 0 0 (18,085,000) 0 (18,085,000)
Ending balance at Jun. 30, 2024 $ 198,000 237,073,000 21,418,000 8,480,000 267,169,000
Ending balance (in Shares) at Jun. 30, 2024 19,753,585        
Beginning balance at Mar. 31, 2025 $ 194,000 234,413,000 20,033,000 3,059,000 $ 257,699,000
Beginning balance (in Shares) at Mar. 31, 2025 19,435,706       19,435,706
Share-based compensation expense $ 0 946,000 0 0 $ 946,000
Issuance of common stock upon vesting of RSUs and PSUs, net of shares withheld for employee taxes $ 2,000 (498,000) 0 0 (496,000)
Issuance of common stock upon vesting of RSUs and PSUs, net of shares withheld for employee taxes (in Shares) 114,225        
Repurchase and cancellation of common stock, including fees $ (2,000) (1,964,000) 0 0 (1,966,000)
Repurchase and cancellation of common stock, including fees (in Shares) (197,796)        
Foreign currency translation $ 0 0 0 888,000 888,000
Net income (loss) 0 0 3,042,000 0 3,042,000
Ending balance at Jun. 30, 2025 $ 194,000 $ 232,897,000 $ 23,075,000 $ 3,947,000 $ 260,113,000
Ending balance (in Shares) at Jun. 30, 2025 19,352,135       19,352,135
v3.25.2
Condensed Consolidated Statements of Cash Flows - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Cash flows from operating activities:    
Net income (loss) $ 3,042,000 $ (18,085,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 2,449,000 2,729,000
Amortization of debt issuance costs 590,000 537,000
Amortization of interest on contract liabilities 162,000 203,000
Accrued interest on convertible notes, related party 968,000 880,000
Amortization of core premiums paid to customers 2,621,000 2,471,000
Amortization of finished goods premiums paid to customers 226,000 257,000
Noncash lease expense 2,435,000 2,608,000
Foreign exchange impact of lease liabilities and forward contracts (8,348,000) 11,078,000
Change in fair value of compound net derivative liability 1,790,000 (2,580,000)
Gain on short-term investments (131,000) (28,000)
Net provision for inventory reserves 2,084,000 3,184,000
Net provision for customer payment discrepancies and credit losses 401,000 34,000
Deferred income taxes (339,000) (1,862,000)
Share-based compensation expense 946,000 1,000,000
Loss on disposal of plant and equipment 17,000 0
Changes in operating assets and liabilities:    
Accounts receivable 5,994,000 17,207,000
Inventory (8,046,000) (9,061,000)
Prepaid expenses and other current assets 725,000 (1,232,000)
Other assets 394,000 (785,000)
Accounts payable and accrued liabilities 4,013,000 (20,367,000)
Customer finished goods returns accrual (1,551,000) (9,275,000)
Contract assets (7,499,000) 1,482,000
Contract liabilities 9,359,000 2,089,000
Operating lease liabilities (2,484,000) (2,162,000)
Other liabilities 210,000 (1,163,000)
Net cash provided by (used in) operating activities 10,028,000 (20,841,000)
Cash flows from investing activities:    
Purchase of plant and equipment (807,000) (490,000)
Redemption of short-term investments 1,000 (22,000)
Net cash used in investing activities (806,000) (512,000)
Cash flows from financing activities:    
Borrowings under revolving loan 188,676,000 42,366,000
Repayments of revolving loan (192,607,000) (26,532,000)
Payments for debt issuance costs 0 (15,000)
Payments on finance lease obligations (385,000) (472,000)
Cash used to net share settle equity awards (496,000) (181,000)
Repurchase of common stock, including fees (1,966,000) 0
Net cash (used in) provided by financing activities (6,778,000) 15,166,000
Effect of exchange rate changes on cash and cash equivalents 606,000 (256,000)
Net increase (decrease) in cash and cash equivalents 3,050,000 (6,443,000)
Cash and cash equivalents — Beginning of period 9,429,000 13,974,000
Cash and cash equivalents — End of period 12,479,000 7,531,000
Supplemental disclosures of cash flow information:    
Cash paid for interest, net 11,154,000 12,689,000
Cash paid for income taxes, net of refunds 550,000 2,196,000
Cash paid for operating leases 3,688,000 3,355,000
Cash paid for finance leases 459,000 523,000
Plant and equipment acquired under finance leases 1,788,000 0
Assets acquired under operating leases 198,000 1,815,000
Non-cash capital expenditures $ 192,000 $ 19,000
v3.25.2
Company Background and Organization
 3 Months Ended
Jun. 30, 2025
Company Background and Organization [Abstract]  
Company Background and Organization
1. Company Background and Organization
 
Motorcar Parts of America, Inc. and its subsidiaries (the “Company”, or “MPA”) is a leading supplier of automotive aftermarket non-discretionary replacement parts, and test solutions and diagnostic equipment. These replacement parts are primarily sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers for both their aftermarket programs and warranty replacement programs (“OES”). The Company’s test solutions and diagnostic equipment primarily serves the global automotive component and powertrain testing market. The Company’s products include (i) light duty and heavy duty rotating electrical products such as alternators and starters, (ii) wheel hub assemblies and bearings, (iii) brake-related products, which include brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders, and (iv) other products, which include (a) turbochargers and (b) test solutions and diagnostic equipment including: (i) applications for combustion engine vehicles, including bench-top testers for alternators and starters, (ii) equipment for the pre- and post-production of electric vehicles, and (iii) software emulation of power system applications for the electrification of all forms of transportation (including automobiles, trucks, the emerging electrification of systems within the aerospace industry, and electric vehicle charging stations).
v3.25.2
Basis of Presentation and New Accounting Pronouncements
 3 Months Ended
Jun. 30, 2025
Basis of Presentation and New Accounting Pronouncements [Abstract]  
Basis of Presentation and New Accounting Pronouncements
2. Basis of Presentation and New Accounting Pronouncements
 
Basis of Presentation
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2026. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2025, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 9, 2025.
 
The accompanying condensed consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025.
 
Accounting Pronouncements Not Yet Adopted
 
Disclosure Improvements
 
In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This standard was issued in response to the SEC’s disclosure update and simplification initiative, which affects a variety of topics within the Accounting Standards Codification. The amendments apply to all reporting entities within the scope of the affected topics unless otherwise indicated. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
Improvements to Income Tax Disclosures
 
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). This standard requires the Company to provide further disaggregated income tax disclosures for specific categories on the effective tax rate reconciliation, as well as additional information about federal, state/local and foreign income taxes. The standard also requires the Company to annually disclose its income taxes paid (net of refunds received), disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is to be applied prospective basis, although optional retrospective application is permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
 
Disaggregation of Income Statement Expenses
 
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“DISE”) (Subtopic 220-40). This standard requires the Company to disclose, in the footnotes at each interim and annual reporting period, information about expenses by the nature of the expense in addition to certain disclosures about selling expenses. Entities are required to include the following relevant expense captions: (i) purchase of inventory, (ii) employee compensation, (iii) depreciation, (iv) intangible asset amortization, and (v) depreciation, depletion and amortization recognized as part of oil and gas producing activities. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) Clarifying the Effective Date, which is intended to clarify the effective date of ASU No. 2024-03. As clarified in ASU 2025-01, the new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
 
Debt with Conversion and Other Options
 
In November 2024, the FASB issued ASU 2024-04, Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which seeks to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. This guidance is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
v3.25.2
Accounts Receivable - Net
 3 Months Ended
Jun. 30, 2025
Accounts Receivable - Net [Abstract]  
Accounts Receivable - Net
3. Accounts Receivable — Net
 
The Company has trade accounts receivable that result from the sale of goods and services. Accounts receivable — net includes offset accounts related to allowances for credit losses, customer payment discrepancies, and returned goods authorizations (“RGAs”) issued for in-transit unit returns. The Company uses accounts receivable discount programs with certain customers and their respective banks (see Note 10).
 
Accounts receivable — net is comprised of the following:
 
    June 30, 2025      March 31, 2025  
Accounts receivable - net
        
Accounts receivable — trade
$109,041,000   $113,807,000 
Allowance for credit losses
 (264,000)    (207,000) 
Customer payment discrepancies
 (2,015,000)    (1,765,000) 
Customer returns RGA issued
 (21,230,000)    (20,771,000) 
Total accounts receivable — net 
$85,532,000   $91,064,000 
v3.25.2
Inventory - Net
 3 Months Ended
Jun. 30, 2025
Inventory - Net [Abstract]  
Inventory - Net
4. Inventory — Net
 
Inventory — net is comprised of the following:
 
        
   
June 30, 2025
    
March 31, 2025
 
Inventory — net
        
Raw materials
$154,325,000   $150,274,000 
Work-in-process
 8,917,000    7,821,000 
Finished goods
 204,604,000    202,078,000 
   367,846,000    360,173,000 
Less allowance for excess and obsolete inventory
 (19,566,000)    (18,964,000) 
Inventory
 348,280,000    341,209,000 
Inventory unreturned
 18,492,000    18,460,000 
Total inventory — net
$366,772,000   $359,669,000 
v3.25.2
Contract Assets
 3 Months Ended
Jun. 30, 2025
Contract Assets [Abstract]  
Contract Assets
5. Contract Assets
 
During the three months ended June 30, 2025 and 2024, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $1,026,000 and $394,000, respectively.
 
Contract assets are comprised of the following:
 
        
   June 30, 2025    March 31, 2025 
Short-term contract assets
        
Cores expected to be returned by customers
$18,151,000   $17,732,000 
Core premiums paid to customers
 9,981,000    9,669,000 
Upfront payments to customers
 1,350,000    1,400,000 
Finished goods premiums paid to customers
 847,000    805,000 
Total short-term contract assets
$30,329,000   $29,606,000 
Long-term contract assets
        
Remanufactured cores held at customers' locations
$305,398,000   $301,388,000 
Core premiums paid to customers
 25,131,000    24,714,000 
Long-term core inventory deposits
 5,569,000    5,569,000 
Finished goods premiums paid to customers
 2,627,000    2,483,000 
Upfront payments to customers
 1,804,000    2,114,000 
Total long-term contract assets
$340,529,000   $336,268,000 
v3.25.2
Significant Customer and Other Information
 3 Months Ended
Jun. 30, 2025
Significant Customer and Other Information [Abstract]  
Significant Customer and Other Information
6. Significant Customer and Other Information
 
Significant Customer Concentrations
 
The largest customers accounted for the following percentage of consolidated net sales:
 
          
  Three Months Ended
June 30,
    2025      2024  
Net sales
        
Customer A
 39%   40%
Customer B
 24%   17%
Customer C
 22%   28%
 
Revenues for these customers were derived from the Hard Parts segment and Test Solutions and Diagnostic Equipment segment. See Note 18 for a discussion of the Company’s segments.
 
The largest customers accounted for the following percentage of accounts receivable – trade:
 
        
    June 30, 2025      March 31, 2025  
Accounts receivable - trade
        
Customer A
 48%   41%
Customer B
 23%   26%
Customer C
 
- 
%   7%
 
Geographic and Product Information
 
The Company’s products are sold predominantly in North America and accounted for the following percentages of consolidated net sales:
 
          
  Three Months Ended
June 30,
    2025      2024  
Product line
        
Rotating electrical products
 66%   65%
Brake-related products
 23%   24%
Wheel hub products
 6%   7%
Other products
 5%   4%
   100%   100%
 
Significant Supplier Concentrations
 
The Company had no suppliers that accounted for more than 10% of inventory purchases for the three months ended June 30, 2025 and 2024.
v3.25.2
Debt
 3 Months Ended
Jun. 30, 2025
Debt [Abstract]  
Debt
7. Debt
 
The Company has $268,620,000 in senior secured financing, (as amended from time to time, the “Credit Facility”) consisting of a $238,620,000 revolving loan facility (the “Revolving Facility”), subject to certain restrictions, and a $30,000,000 term loan facility (the “Term Loans”). The Term Loans were repaid during the year ended March 31, 2024. The Credit Facility matures on December 12, 2028. The lenders have a security interest in substantially all of the assets of the Company.
The Company had $86,856,000 and $90,787,000 outstanding under the Revolving Facility at June 30, 2025 and March 31, 2025, respectively. In addition, $11,888,000 was outstanding for letters of credit at June 30, 2025. At June 30, 2025, after certain contractual adjustments, $134,341,000 was available under the Revolving Facility. The interest rate on the Company’s Revolving Facility was 7.40% and 7.46%, at June 30, 2025 and March 31, 2025, respectively.
 
The Credit Facility requires the Company to maintain a minimum fixed charge coverage ratio if undrawn availability is less than 22.5% of the aggregate revolving commitments and a specified minimum undrawn availability. During the three months ended June 30, 2025, undrawn availability was greater than the 22.5% threshold, therefore, the fixed charge coverage ratio financial covenant was not required to be tested.
 
Convertible Notes
 
On March 31, 2023, the Company entered into a note purchase agreement, as amended, (the “Note Purchase Agreement”) with Bison Capital Partners VI, L.P. and Bison Capital Partners VI-A, L.P. (collectively, the “Purchasers”) and Bison Capital Partners VI, L.P., as the purchaser representative (the “Purchaser Representative”) for the issuance and sale of $32,000,000 in aggregate principal amount of convertible notes due in 2029 (the “Convertible Notes”), which was used for general corporate purposes. The Convertible Notes bear interest at a rate of 10.0% per annum, compounded annually, and payable (i) in-kind or (ii) in cash, annually in arrears on April 1 of each year, commencing on April 1, 2024. In April 2025, non-cash accrued interest on the Convertible Notes of $3,521,000 was paid in-kind and is included in the principal amount of Convertible Notes at June 30, 2025. The Convertible Notes have an initial conversion price of $15.00 per share of the Company's common stock, subject to adjustment as provided in the Convertible Notes (“Conversion Option”). Unless and until the Company delivers a redemption notice, the Purchasers of the Convertible Notes may convert their Convertible Notes at any time at their option. Upon conversion, the Convertible Notes will be settled in shares of the Company’s common stock. Except in the case of the occurrence of a fundamental transaction, as defined in the form of convertible promissory note, the Company may not redeem the Convertible Notes prior to March 31, 2026. After March 31, 2026, the Company may redeem all or part of the Convertible Notes for a cash purchase (the “Company Redemption”) price. The effective interest rate was 18.3% as of June 30, 2025 and March 31, 2025, respectively.
 
The Company’s Convertible Notes are comprised of the following:
 
        
   
June 30, 2025
    
March 31, 2025
 
Convertible Notes, related party
        
Principal amount of Convertible Notes
$38,730,000   $35,209,000 
Less: unamortized debt discount attributed to Compound Net Derivative Liability
 (6,271,000)    (6,556,000) 
Less: unamortized debt discount attributed to debt issuance costs
 (875,000)    (916,000) 
Carrying amount of the Convertible Notes
 31,584,000    27,737,000 
Plus: Compound Net Derivative Liability
 9,260,000    7,470,000 
Net carrying amount of Convertible Notes, related party
$40,844,000   $35,207,000 
 
In connection with the Note Purchase Agreement, the Company entered into common stock warrants (the “Warrants”) with the Purchasers, which mature on March 30, 2029. The fair value of the Warrants, using Level 3 inputs and the Monte Carlo simulation model, was zero at June 30, 2025 and March 31, 2025.
 
The Company Redemption option has been combined with the Conversion Option as a compound net derivative liability (the “Compound Net Derivative Liability”). The Compound Net Derivative Liability has been recorded within convertible note, related party in the condensed consolidated balance sheets at June 30, 2025 and March 31, 2025. The fair value of the Conversion Option and the Company Redemption option using Level 3 inputs and the Monte Carlo simulation model was a liability of $12,900,000 and $9,000,000, and an asset of $3,640,000 and $1,530,000 at June 30, 2025 and March 31, 2025, respectively. During the three months ended June 30, 2025 and 2024, the Company recorded a loss of $1,790,000 and a gain of $2,580,000, respectively, as the change in fair value of the Compound Net Derivative Liability in the condensed consolidated statements of operations and condensed consolidated statements of cash flows.
The Convertible Notes also contain additional features, such as, default interest and options related to a fundamental transaction, which were not separately accounted for as the value of such features were not material at June 30, 2025 and March 31, 2025.
 
Interest expense related to the Convertible Notes is as follows:
 
          
   Three Months Ended
June 30, 		 
   
2025
    
2024
 
Interest expense on Convertible Notes
        
Contractual interest expense
$968,000   $880,000 
Accretion of debt discount
 285,000    238,000 
Amortization of debt issuance costs
 41,000    33,000 
Total interest expense on Convertible Notes
$1,294,000   $1,151,000 
 
There are no future payments required under the Convertible Notes prior to their maturity, therefore, the principal amount of the Convertible Notes plus interest payable in-kind, assuming no early redemption or conversion has occurred, of $56,704,000 would be paid on March 30, 2029.
v3.25.2
Contract Liabilities
 3 Months Ended
Jun. 30, 2025
Contract Liabilities [Abstract]  
Contract Liabilities
8. Contract Liabilities
 
Contract liabilities are comprised of the following:
 
        
   
June 30, 2025
    
March 31, 2025
 
Short-term contract liabilities
        
Customer allowances earned
$17,814,000   $16,283,000 
Customer core returns accruals
 14,826,000    13,880,000 
Core bank liability
 11,399,000    1,795,000 
Accrued core payment
 3,117,000    3,196,000 
Customer deposits
 2,137,000    2,486,000 
Finished goods liabilities
 103,000    518,000 
Total short-term contract liabilities
$49,396,000   $38,158,000 
Long-term contract liabilities
        
Customer core returns accruals
$236,875,000   $227,588,000 
Accrued core payment
 3,146,000    3,768,000 
Core bank liability
  -     10,048,000 
Total long-term contract liabilities
$240,021,000   $241,404,000 
v3.25.2
Leases
 3 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases
9. Leases
 
The Company leases various facilities in North America and Asia under operating leases expiring through August 2033. The Company has material nonfunctional currency leases that could have a material impact on the Company’s condensed consolidated statements of operations. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary assets measured at historical rates and are not affected by subsequent changes in the exchange rates.  In connection with the remeasurement of these leases, the Company recorded a gain of $4,002,000 and a loss of $5,709,000 during the three months ended June 30, 2025 and 2024, respectively. These amounts are included in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of operations.
 
During the year ended March 31, 2025, the Company ceased manufacturing operations at its Torrance, California facility as a part of its strategy to enhance its operating efficiencies. This represented a significant change to the use of this right-of-use asset, which required a reassessment of the Company’s asset groups. The Company concluded that this right-of-use asset was no longer part of the Hard Parts asset group. The Company performed a test for recoverability (using Level 3 inputs) which resulted in no impairment at June 30, 2025. Any future changes to the assumptions and estimates from those anticipated may affect the carrying value of right-of-use assets and could result in impairment charges.
Balance sheet information for leases is as follows:
 
           
Leases
 
Classification
  June 30,2025     March 31, 2025
Assets:
             
Operating
 
Operating lease assets
 $68,281,000    $66,603,000 
Finance
 
Plant and equipment
  5,309,000     4,296,000 
Total leased assets
    $73,590,000    $70,899,000 
               
Liabilities:
             
Current
             
Operating
 
Operating lease liabilities
 $10,196,000    $9,982,000 
Finance
 
Other current liabilities
  1,321,000     1,222,000 
Long-term
             
Operating
 
Long-term operating lease liabilities
  63,056,000     65,308,000 
Finance
 
Other liabilities
  3,268,000     1,954,000 
Total lease liabilities
    $77,841,000    $78,466,000 
 
Lease cost recognized in the condensed consolidated statements of operations is as follows:
 
           
  Three Months Ended
  June 30,
    2025       2024  
Lease cost
         
Operating lease cost
$3,490,000    $3,759,000 
Short-term lease cost
 216,000     312,000 
Variable lease cost
 133,000     164,000 
Finance lease cost:
         
Amortization of finance lease assets
 355,000     358,000 
Interest on finance lease liabilities
 74,000     51,000 
Total lease cost
$4,268,000    $4,644,000 
 
Maturities of lease commitments at June 30, 2025 by fiscal year were as follows:
 
Maturity of lease liabilities by fiscal year
  Operating Leases       Finance Leases       Total  
2026- remaining nine months
$10,643,000    $1,279,000    $11,922,000 
2027  12,331,000     1,304,000     13,635,000 
2028  11,672,000     1,049,000     12,721,000 
2029   11,179,000     818,000     11,997,000 
2030  11,378,000     740,000     12,118,000 
Thereafter
 32,135,000     92,000     32,227,000 
Total lease payments
 89,338,000     5,282,000     94,620,000 
Less amount representing interest
 (16,086,000)     (693,000)     (16,779,000) 
Present value of lease liabilities
$73,252,000    $4,589,000    $77,841,000 
Other information about leases is as follows:
 
    June 30, 2025       March 31, 2025  
Lease term and discount rate
         
Weighted-average remaining lease term (years):
         
Finance leases
 4.0     3.2 
Operating leases
 7.1     7.3 
Weighted-average discount rate:
         
Finance leases
 7.1%    7.0%
Operating leases
 5.8%    5.8%
v3.25.2
Accounts Receivable Discount Programs
 3 Months Ended
Jun. 30, 2025
Accounts Receivable Discount Programs [Abstract]  
Accounts Receivable Discount Programs
10. Accounts Receivable Discount Programs
 
The Company uses accounts receivable discount programs offered by certain customers and their respective banks. Under these programs, the Company may sell those customers’ receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate receipt of payment on customers’ receivables.
 
The following is a summary of accounts receivable discount programs:
 
           
  Three Months Ended
  June 30,
    2025       2024  
Receivables discounted
$168,194,000    $144,541,000 
Weighted average number of days collection was accelerated
 345     342 
Annualized weighted average discount rate
 5.7%    6.9%
Amount of discount recognized as interest expense
$9,158,000    $9,507,000 
v3.25.2
Supplier Finance Programs
 3 Months Ended
Jun. 30, 2025
Supplier Finance Programs [Abstract]  
Supplier Finance Programs
11. Supplier Finance Programs
 
The Company utilizes a supplier finance program, which allows certain of the Company’s suppliers to sell their receivables due from the Company to participating financial institutions at the sole discretion of both the supplier and the financial institutions. The program is administered by a third party. Commitments from participating financial institutions that are available to suppliers under this program were $30,000,000 at June 30, 2025 and March 31, 2025. The Company has no economic interest in the sale of these receivables and no direct relationship with the financial institution. Payments to the third-party administrator are based on services rendered and are not related to the volume or number of financing agreements between suppliers, financial institution, and the third-party administrator. The Company is not a party to agreements negotiated between participating suppliers and the financial institution. The Company's obligations to its suppliers, including amounts due and payment terms, are not affected by a supplier's decision to participate in this program. The Company does not provide guarantees and there are no assets pledged to the financial institution or the third-party administrator for the committed payment in connection with this program. At June 30, 2025 and March 31, 2025, the Company had $31,292,000 and $33,661,000, respectively, of outstanding supplier obligations confirmed as valid under this program, included in accounts payable in the condensed consolidated balance sheets.
v3.25.2
Net Income (Loss) per Share
 3 Months Ended
Jun. 30, 2025
Net Income (Loss) per Share [Abstract]  
Net Income (Loss) per Share
12. Net Income (Loss) per Share
 
Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options, Warrants, and Convertible Notes (as defined in Note 7), which would result in the issuance of incremental shares of common stock to the extent such impact is not anti-dilutive.
The following presents a reconciliation of basic and diluted net income (loss) per share:
 
    Three Months Ended      
    June 30,      
    2025       2024  
           
Net income (loss)
 $3,042,000    $(18,085,000) 
Basic shares
 19,369,060     19,674,539 
Effect of potentially dilutive securities
 548,603                  -    
Diluted shares
 19,917,663     19,674,539 
Net income (loss) per share:
         
Basic net income (loss) per share
$0.16    $(0.92) 
Diluted net income (loss) per share
$0.15    $(0.92) 
 
Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net income (loss) per share. For the three months ended June 30, 2025, there were 1,049,341 of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive. For the three months ended June 30, 2024, there were 2,285,834 of potential common shares not included in the calculation of diluted net loss per share because their effect was anti-dilutive.
 
In addition, for the three months ended June 30, 2025 and 2024, there were 2,646,535 and 2,405,941, respectively, of potential common shares not included in the calculation of diluted net income (loss) per share under the “if-converted” method for the Convertible Notes because their effect was anti-dilutive. The potential common shares related to the Warrants issued in connection with the Convertible Notes (see Note 7) are anti-dilutive until they become exercisable and as of June 30, 2025, the Warrants were not exercisable.
v3.25.2
Income Taxes
 3 Months Ended
Jun. 30, 2025
Income Taxes [Abstract]  
Income Taxes
13. Income Taxes
 
The Company recorded income tax expense of $2,425,000, or an effective tax rate of 44.4%, and income tax benefit of $178,000, or an effective tax rate of 1%, for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate for the three months ended June 30, 2025, was primarily impacted by the change in valuation allowance on certain jurisdictions' deferred tax assets resulting from current year activities and foreign income taxed at rates that are different from the federal statutory rate.
 
Management continues to monitor its valuation allowance position in its various jurisdictions. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, past financial performance, and tax planning strategies. Based on this analysis, the Company determined that it is more likely than not that certain deferred tax assets will not be realized. As a result, the Company continued to have valuation allowances on its U.S. and one of its Mexican subsidiaries’ deferred tax assets. The Company will monitor its position in future periods. Should the actual amount differ from the Company’s estimates, the amount of any valuation allowance could be impacted.
 
The Company and its subsidiaries file income tax returns for the U.S. federal, various state, and foreign jurisdictions with varying statutes of limitations. At June 30, 2025, the Company remains subject to examination for fiscal years ended March 31, 2022 and forward. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months.
 
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law in the U.S. The OBBBA includes a broad range of tax reform provisions, including making permanent key elements of the Tax Cuts and Jobs Act of 2017, which may affect the Company's financial position and results of operations. The Company is currently evaluating the impact of these provisions on the Company's effective tax rate and deferred tax assets for future periods.
v3.25.2
Financial Risk Management and Derivatives
 3 Months Ended
Jun. 30, 2025
Financial Risk Management and Derivatives [Abstract]  
Financial Risk Management and Derivatives
14. Financial Risk Management and Derivatives
 
Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s overseas facilities, expose the Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currencies. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used, is modified periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements.
 
The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by changes in exchange rates between the U.S. dollar and the foreign currencies. The Company does not hold or issue financial instruments for trading purposes. The Company designates forward foreign currency exchange contracts for forecasted expenditure requirements to fund foreign operations.
 
The Company had forward foreign currency exchange contracts with a U.S. dollar equivalent notional value of $42,531,000 and $45,921,000 at June 30, 2025 and March 31, 2025, respectively. These contracts generally have a term of one year or less, at rates agreed at the inception of the contracts. The counterparty to these derivative transactions is a major financial institution with investment grade credit rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are included in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of operations.
 
The following shows the effect of derivative instruments on the condensed consolidated statements of operations:
 
         
     Foreign Exchange Impact of Lease
Liabilities and Forward Contracts    		  
     Three Months Ended      
Derivatives Not Designated as
   June 30,      
Hedging Instruments
   2025       2024  
Gain (loss) from forward foreign currency exchange contracts
 $4,346,000    $(5,369,000) 
 
The changes in the fair values of forward foreign currency exchange contracts are included in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of cash flows for the three months ended June 30, 2025 and 2024. The fair value of the forward foreign currency exchange contracts of $2,683,000 is included in prepaid expenses and other current assets in the condensed consolidated balance sheets at June 30, 2025. The fair value of the forward foreign currency exchange contracts of $1,663,000 is included in other current liabilities in the condensed consolidated balance sheets at March 31, 2025.
v3.25.2
Fair Value Measurements
 3 Months Ended
Jun. 30, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements
15. Fair Value Measurements
 
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
 
                                  
                                  
                                  
        June 30, 2025        March 31, 2025  
        Fair Value Measurements        Fair Value Measurements  
        Using Inputs Considered as        Using Inputs Considered as  
     Fair Value      Level 1      Level 2      Level 3      Fair Value     Level 1      Level 2      Level 3  
Assets
                                        
Short-term investments
                                        
Mutual funds
 $2,011,000   $2,011,000   $          -    $          -    $  1,881,000   $1,881,000   $         -    $          -  
Prepaid expenses and other current assets
                                        
Forward foreign currency exchange contracts
  2,683,000     -     2,683,000     -     
-
    -      -      -  
                                          
Liabilities
                                        
Other current liabilities
                                        
Deferred compensation
  2,011,000    2,011,000     -      -     
1,881,000
   1,881,000     -      -  
Forward foreign currency exchange contracts
   -      -      -      -     
1,663,000
    -     1,663,000     -  
Convertible notes, related party Compound Net Derivative Liability
  9,260,000     -      -     9,260,000    
7,470,000
    -      -     7,470,000 
 
Short-term Investments and Deferred Compensation
 
The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis.
 
Forward Foreign Currency Exchange Contracts
 
The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers (see Note 14).
 
Compound Net Derivative Liability
 
The Company estimates the fair value of the Compound Net Derivative Liability (see Note 7) using Level 3 inputs and the Monte Carlo simulation model at the balance sheet date. The Monte Carlo simulation model requires the input of subjective assumptions including the expected volatility of the underlying stock. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value. This amount is recorded within convertible notes, related party in the condensed consolidated balance sheets at June 30, 2025 and March 31, 2025. Any changes in the fair value of the Compound Net Derivative Liability are recorded in change in fair value of compound net derivative liability in the condensed consolidated statements of operations and condensed consolidated statements of cash flows.
 
The following assumptions were used to determine the fair value of the Compound Net Derivative Liability:
 
        
    June 30, 2025       March 31, 2025  
Risk free interest rate
 3.70%    3.91%
Cost of equity
 21.40%    21.30%
Weighted average cost of capital
 15.60%    14.90%
Expected volatility of the Company's common stock
 47.50%    40.00%
EBITDA volatility
 35.00%    45.00%
The following summarizes the activity for Level 3 fair value measurements:
 
           
  Three Months Ended
  June 30,
    2025       2024  
Beginning balance
$7,470,000    $7,410,000 
Changes in fair value of Compound Net Derivative Liability included in earnings
 1,790,000     (2,580,000) 
Ending balance
$9,260,000    $4,830,000 
 
During the three months ended June 30, 2025, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.
 
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics. At June 30, 2025 and March 31, 2025, the net carrying amount of the Convertible Notes was $40,844,000 and $35,207,000, respectively (see Note 7). The estimated fair value of the Company’s Convertible Notes was $51,514,000 and $42,398,000 using Level 3 inputs at June 30, 2025 and March 31, 2025, respectively.
v3.25.2
Share-based Payments
 3 Months Ended
Jun. 30, 2025
Share-based Payments [Abstract]  
Share-based Payments
16. Share-based Payments
 
Stock Options
 
During the three months ended June 30, 2025 and 2024, no options to purchase shares of the Company’s common stock were granted.
 
The following is a summary of stock option transactions:

        
    Number of 
Shares 		     Weighted Average
Exercise Price
Outstanding at March 31, 2025
 1,053,561    $20.20 
Forfeited/Cancelled
 (4,220)    $22.64 
Outstanding at June 30, 2025
 1,049,341    $20.20 
 
At June 30, 2025, options to purchase 87,288 shares of common stock were unvested at a weighted average exercise price of $9.32.
 
At June 30, 2025, there was $201,000 of total unrecognized compensation expense related to unvested stock option awards, which will be recognized over the weighted average remaining vesting period of approximately 1.2 years.
 
Restricted Stock Units (“RSUs”)
 
During the three months ended June 30, 2025 and 2024, the Company granted 428,552 and 207,050, respectively, of time-based vesting RSUs, based on the closing market price on the grant date.
The following is a summary of non-vested RSUs:
 
        
    Number of Shares      Weighted Average
Grant Date Fair
Value 		 
Outstanding at March 31, 2025
 505,373   $7.26 
Granted
 428,552   $9.76 
Vested
 (121,364)   $9.49 
Forfeited/Cancelled
 (580)   $7.73 
Outstanding at June 30, 2025
 811,981   $8.25 
 
At June 30, 2025, there was $5,931,000 of unrecognized compensation expense related to RSUs, which will be recognized over the weighted average remaining vesting period of approximately 2.7 years.
 
Performance Stock Units (“PSUs”)
 
During the three months ended June 30, 2025, the Company granted 353,778 PSUs (at target performance levels) based on the Company’s stock price or a total shareholder return (“TSR”) market conditions. During the three months ended June 30, 2024, the Company granted 155,391 PSUs (at target performance levels), based on a TSR market condition. All PSUs granted have a three-year performance period, subject to continued employment.
 
Stock Price PSUs
 
During the three months ended June 30, 2025, the Company granted 176,893 PSUs (at target performance levels), which vest as follows: (i) if the stock price is greater than or equal to $15.00 per share, then 1/3 of the grant will vest, (ii) if the stock price is greater than or equal to $17.00 per share then the next 1/3 of the grant will vest, and (iii) if the stock price is greater than or equal to $20.00 per share then the final 1/3 of the grant will vest. Recipients are eligible to vest in between 50% and 150% of the third tranche by achieving a stock price between $18.00 and $22.00 per share (each stock price target must be met for thirty consecutive trading days). The Company calculated the fair value of these PSUs individually for each tranche using the Monte Carlo Simulation Model at the grant date. Compensation cost is recognized over the estimated derived service period. Compensation cost related to these awards will not be adjusted even if the market condition is not met.
 
During the three months ended June 30, 2024, the Company did not grant any PSUs based on the Company’s stock price.
 
TSR PSUs
 
During the three months ended June 30, 2025 and 2024, the Company granted 176,885 and 155,391 PSUs (at target performance levels), respectively, which cliff vest and the number of shares earned at the end of the three-year performance period will vary, based only on actual performance, from 0% to 150% of the target number of PSUs granted, depending on the Company’s TSR percentile rank relative to that of a peer group over the performance period. TSR is measured based on a comparison of the closing price on the first trading day of the performance period and the average closing price over the last 30 trading days of the performance period. TSR is considered a market condition because it measures the Company’s return against the performance of the Russell 3000, excluding companies classified as financials and real estate and companies with a market capitalization of more than $600 million, as of the start of the performance period. Compensation cost is determined at the grant date and recognized on a straight-line basis over the requisite service period to the extent the conditions are deemed probable. Compensation cost related to the TSR award will not be adjusted even if the market condition is not met.
The fair value of PSUs subject to a market condition is determined using the Monte Carlo simulation model. The following table summarizes the assumptions used in determining the fair value of the awards subject to market conditions:
 
           
  Three Months Ended
June 30,
   2025     2024  
Risk free interest rate
 3.86%    4.45%
Expected life in years  0.7-3.0     3 
Expected volatility of the Company's common stock
 66.80%    59.80%
Average correlation coefficient of peer companies
 15.70%    16.50%
Expected dividend yield
  -       -  
Grant date fair value
$7.33-12.68     $8.65 
 
The following is a summary of non-vested PSUs:
 
           
  Number of Shares     Weighted Average
Grant Date Fair
Value 		 
Outstanding at March 31, 2025
 764,387    $7.42 
Granted
 353,778    $10.57 
Vested
 (43,917)    $14.55 
Forfeited/Cancelled
 (76,101)    $13.65 
Outstanding at June 30, 2025
 998,147    $7.74 
 
At June 30, 2025, there was $5,256,000 of unrecognized compensation expense related to these awards, which will be recognized over the weighted average remaining vesting period of approximately 2.2 years.
v3.25.2
Commitments and Contingencies
 3 Months Ended
Jun. 30, 2025
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
17. Commitments and Contingencies
 
Warranty Returns
 
The Company allows its customers to return goods that their consumers have returned to them, whether or not the returned item is defective (“warranty returns”). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company’s net sales.
 
The following summarizes the changes in the warranty returns:
 
          
  Three Months Ended
June 30,
    2025      2024  
Balance at beginning of period
$19,677,000   $19,326,000 
Charged to expense
 38,453,000    33,352,000 
Amounts processed
 (39,999,000)    (37,632,000) 
Balance at end of period
$18,131,000   $15,046,000 
 
At June 30, 2025 and March 31, 2025, the Company’s total warranty return accrual was $18,131,000 and $19,677,000, respectively, of which $7,222,000 and $6,478,000, respectively, was included in the customer returns RGA issued within accounts receivable—net and $10,909,000 and $13,199,000, respectively, was included in the customer finished goods returns accrual in the condensed consolidated balance sheets.
Contingencies
 
The Company is subject to various lawsuits and claims. In addition, government agencies and self-regulatory organizations have the ability to conduct periodic examinations of and administrative proceedings regarding the Company’s business, and its compliance with law, code, and regulations related to matters including, but not limited to, environmental, information security, taxes, levies, tariffs and such. The Company has an immaterial amount accrued related to these exposures to various lawsuits, claims, examinations, and administrative proceedings.
v3.25.2
Segment Information
 3 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
Segment Information
18. Segment Information
 
The Company has identified its Chief Executive Officer as its chief operating decision maker (“CODM”). The Company has identified its operating segments based on the nature of the products the Company sells, the Company’s organizational and management reporting structure, and the operating results that are regularly reviewed by the Company’s CODM to make decisions about the resources to be allocated to the business units and to assess performance. The CODM primarily uses operating income to evaluate the performance of the Company’s operating segments and to allocate resources.
 
The Company’s three operating segments are:
 
●
Hard Parts, which includes (i) light duty rotating electric products such as alternators and starters, (ii) wheel hub products, (iii) brake-related products, including brake calipers, brake boosters, brake rotors, brake pads and brake master cylinders, and (iv) turbochargers,
●
Test Solutions and Diagnostic Equipment, which includes (i) applications for combustion engine vehicles, including bench-top testers for alternators and starters, (ii) equipment for the pre- and post-production of electric vehicles, and (iii) software emulation of power system applications for the electrification of all forms of transportation (including automobiles, trucks, the emerging electrification of systems within the aerospace industry, and electric vehicle charging stations), and
●
Heavy Duty, which includes non-discretionary automotive aftermarket replacement hard parts for heavy duty truck, industrial, marine, and agricultural applications.
 
The Company’s Hard Parts operating segment meets the criteria of a reportable segment. The Test Solutions and Diagnostic Equipment and Heavy Duty segments are not material, and are not required to be separately reported.
Financial information relating to the Company’s segments is as follows:
 
 Three Months Ended  
 June 30, 
  2025   2024 
        
Net sales to external customers for Hard Parts reportable segment
$174,889,000  $158,187,000 
Intersegment sales for Hard Parts reportable segment
 258,000   32,000 
Total net sales for Hard Parts reportable segment
 175,147,000   158,219,000 
        
Reconciliation of net sales
       
Other net sales (1)
 13,475,000   11,700,000 
Elimination of intersegment net sales
 (258,000)   (32,000) 
Total consolidated net sales
$188,364,000  $169,887,000 
        
Less (2):
       
Material, labor, and overhead expenses
 113,895,000   109,217,000 
Logistic expenses (3)
 30,665,000   22,778,000 
Revaluation of cores on customers' shelves
 1,026,000   394,000 
Foreign exchange impact of lease liabilities and forward contracts
 (8,348,000)   11,078,000 
Other segment items (4)
 19,477,000   21,211,000 
Total operating income (loss) for Hard Parts reportable segment
$18,432,000  $(6,459,000) 
        
Reconciliation of profit (loss)
       
Other operating income (loss) (1)
 1,633,000   (6,000) 
Elimination of intersegment operating income
 4,000   9,000 
Interest expense, net
 (12,812,000)   (14,387,000) 
Change in fair value of compound net derivative liability
 (1,790,000)   2,580,000 
Total consolidated income (loss) before income tax expense (benefit)
$5,467,000  $(18,263,000) 
        
Reconciliations of other significant items and assets:
       
        
Depreciation and amortization
       
Depreciation and amortization for Hard Parts reportable segment (5)
$2,232,000  $2,525,000 
Other depreciation and amortization (1)
 217,000   204,000 
Total consolidated depreciation and amortization
$2,449,000  $2,729,000 
        
Capital Expenditures
       
Captial expenditures for Hard Parts reportable segment
$394,000  $253,000 
Other capital expenditures (1)
 413,000   237,000 
Total consolidated capital expenditures
$807,000  $490,000 
        
        
Assets
 June 30, 2025   March 31, 2025 
Total assets for Hard Parts reportable segment
$981,161,000  $967,178,000 
Other assets (1)
 60,688,000   58,355,000 
Elimination of intersegment assets
 (68,499,000)   (67,897,000) 
Total consolidated assets
$973,350,000  $957,636,000 
 
(1)
Net sales, operating income (loss), depreciation and amortization, capital expenditures, and assets from segments below the quantitative threshold are attributable to the Company’s Test Solutions and Diagnostic Equipment and the Heavy Duty operating segments. Neither of these two operating segments has ever met any of the quantitative thresholds for determining reportable segments.
(2)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM for the Company’s Hard Parts reportable segment. Intersegment expenses are included within the amounts shown.
(3)
Logistic expenses include freight, tariffs, and customs duties.
(4)
Other segment items include general and administrative expenses, sales and marketing expenses, and research and development expenses.
(5)
Depreciation and amortization for the Company’s Hard Parts reportable segment are included within material, labor, and overhead expenses and other segment items.
v3.25.2
Share Repurchases
 3 Months Ended
Jun. 30, 2025
Share Repurchases [Abstract]  
Share Repurchases
19. Share Repurchases
 
In August 2018, the Company’s board of directors approved an increase in its share repurchase program from $20,000,000 to $37,000,000 of its common stock. During the three months ended June 30, 2025, the Company repurchased 197,796 shares of its common stock for $1,966,000. As of June 30, 2025, $25,543,000 has been utilized and $11,457,000 remains available to repurchase shares under the authorized share repurchase program, subject to the limit in the Company’s Credit Facility and Convertible Notes. The Company retired the 1,576,937 shares repurchased under this program through June 30, 2025. The Company’s share repurchase program does not obligate it to acquire any specific number of shares and shares may be repurchased in privately negotiated and/or open market transactions.
v3.25.2
Related Party Transactions
 3 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Related Party Transactions
20. Related Party Transactions
 
Lease
 
The Company has an operating lease for its 35,000 square foot manufacturing, warehouse, and office facility in Ontario, Canada, with a company co-owned by a member of management. The Company renewed this operating lease for an additional three-year period, effective January 1, 2025. The rent expense recorded for this related party lease was $93,000 and $81,000 for the three months ended June 30, 2025 and 2024, respectively.
 
Convertible Note and Election of Director
 
In connection with the issuance and sale of the Company’s Convertible Notes on March 31, 2023 (see Note 7), the Board appointed Douglas Trussler, a co-founder of Bison Capital, to the Board. Mr. Trussler’s compensation is different from the compensation for other non-employee directors as described in the Company’s Definitive Proxy Statement, filed with the SEC on July 29, 2025.
v3.25.2
Pay vs Performance Disclosure - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure    
Net Income (Loss) $ 3,042,000 $ (18,085,000)
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Accounting Policies, by Policy (Policies)
 3 Months Ended
Jun. 30, 2025
Basis of Presentation and New Accounting Pronouncements [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2026. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2025, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 9, 2025.
The accompanying condensed consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025.
Accounting Pronouncements Not Yet Adopted
Accounting Pronouncements Not Yet Adopted
Disclosure Improvements
In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This standard was issued in response to the SEC’s disclosure update and simplification initiative, which affects a variety of topics within the Accounting Standards Codification. The amendments apply to all reporting entities within the scope of the affected topics unless otherwise indicated. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). This standard requires the Company to provide further disaggregated income tax disclosures for specific categories on the effective tax rate reconciliation, as well as additional information about federal, state/local and foreign income taxes. The standard also requires the Company to annually disclose its income taxes paid (net of refunds received), disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is to be applied prospective basis, although optional retrospective application is permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“DISE”) (Subtopic 220-40). This standard requires the Company to disclose, in the footnotes at each interim and annual reporting period, information about expenses by the nature of the expense in addition to certain disclosures about selling expenses. Entities are required to include the following relevant expense captions: (i) purchase of inventory, (ii) employee compensation, (iii) depreciation, (iv) intangible asset amortization, and (v) depreciation, depletion and amortization recognized as part of oil and gas producing activities. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) Clarifying the Effective Date, which is intended to clarify the effective date of ASU No. 2024-03. As clarified in ASU 2025-01, the new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
Debt with Conversion and Other Options
In November 2024, the FASB issued ASU 2024-04, Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which seeks to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. This guidance is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.
v3.25.2
Accounts Receivable - Net (Tables)
 3 Months Ended
Jun. 30, 2025
Accounts Receivable - Net [Abstract]  
Accounts Receivable
Accounts receivable — net is comprised of the following:
 
    June 30, 2025      March 31, 2025  
Accounts receivable - net
        
Accounts receivable — trade
$109,041,000   $113,807,000 
Allowance for credit losses
 (264,000)    (207,000) 
Customer payment discrepancies
 (2,015,000)    (1,765,000) 
Customer returns RGA issued
 (21,230,000)    (20,771,000) 
Total accounts receivable — net 
$85,532,000   $91,064,000 
v3.25.2
Inventory - Net (Tables)
 3 Months Ended
Jun. 30, 2025
Inventory - Net [Abstract]  
Inventory Net
Inventory — net is comprised of the following:
 
        
   
June 30, 2025
    
March 31, 2025
 
Inventory — net
        
Raw materials
$154,325,000   $150,274,000 
Work-in-process
 8,917,000    7,821,000 
Finished goods
 204,604,000    202,078,000 
   367,846,000    360,173,000 
Less allowance for excess and obsolete inventory
 (19,566,000)    (18,964,000) 
Inventory
 348,280,000    341,209,000 
Inventory unreturned
 18,492,000    18,460,000 
Total inventory — net
$366,772,000   $359,669,000 
v3.25.2
Contract Assets (Tables)
 3 Months Ended
Jun. 30, 2025
Contract Assets [Abstract]  
Contract Assets
Contract assets are comprised of the following:
 
        
   June 30, 2025    March 31, 2025 
Short-term contract assets
        
Cores expected to be returned by customers
$18,151,000   $17,732,000 
Core premiums paid to customers
 9,981,000    9,669,000 
Upfront payments to customers
 1,350,000    1,400,000 
Finished goods premiums paid to customers
 847,000    805,000 
Total short-term contract assets
$30,329,000   $29,606,000 
Long-term contract assets
        
Remanufactured cores held at customers' locations
$305,398,000   $301,388,000 
Core premiums paid to customers
 25,131,000    24,714,000 
Long-term core inventory deposits
 5,569,000    5,569,000 
Finished goods premiums paid to customers
 2,627,000    2,483,000 
Upfront payments to customers
 1,804,000    2,114,000 
Total long-term contract assets
$340,529,000   $336,268,000 
v3.25.2
Significant Customer and Other Information (Tables)
 3 Months Ended
Jun. 30, 2025
Significant Customer and Other Information [Abstract]  
Concentrations of Risk
Significant Customer Concentrations
 
The largest customers accounted for the following percentage of consolidated net sales:
 
          
  Three Months Ended
June 30,
    2025      2024  
Net sales
        
Customer A
 39%   40%
Customer B
 24%   17%
Customer C
 22%   28%
 
Revenues for these customers were derived from the Hard Parts segment and Test Solutions and Diagnostic Equipment segment. See Note 18 for a discussion of the Company’s segments.
 
The largest customers accounted for the following percentage of accounts receivable – trade:
 
        
    June 30, 2025      March 31, 2025  
Accounts receivable - trade
        
Customer A
 48%   41%
Customer B
 23%   26%
Customer C
 
- 
%   7%
 
Geographic and Product Information
 
The Company’s products are sold predominantly in North America and accounted for the following percentages of consolidated net sales:
 
          
  Three Months Ended
June 30,
    2025      2024  
Product line
        
Rotating electrical products
 66%   65%
Brake-related products
 23%   24%
Wheel hub products
 6%   7%
Other products
 5%   4%
   100%   100%
v3.25.2
Debt (Tables)
 3 Months Ended
Jun. 30, 2025
Debt [Abstract]  
Convertible Debt
The Company’s Convertible Notes are comprised of the following:
 
        
   
June 30, 2025
    
March 31, 2025
 
Convertible Notes, related party
        
Principal amount of Convertible Notes
$38,730,000   $35,209,000 
Less: unamortized debt discount attributed to Compound Net Derivative Liability
 (6,271,000)    (6,556,000) 
Less: unamortized debt discount attributed to debt issuance costs
 (875,000)    (916,000) 
Carrying amount of the Convertible Notes
 31,584,000    27,737,000 
Plus: Compound Net Derivative Liability
 9,260,000    7,470,000 
Net carrying amount of Convertible Notes, related party
$40,844,000   $35,207,000 
Total Interest Expense Recognized Related to Convertible Notes
Interest expense related to the Convertible Notes is as follows:
 
          
   Three Months Ended
June 30, 		 
   
2025
    
2024
 
Interest expense on Convertible Notes
        
Contractual interest expense
$968,000   $880,000 
Accretion of debt discount
 285,000    238,000 
Amortization of debt issuance costs
 41,000    33,000 
Total interest expense on Convertible Notes
$1,294,000   $1,151,000 
v3.25.2
Contract Liabilities (Tables)
 3 Months Ended
Jun. 30, 2025
Contract Liabilities [Abstract]  
Contract Liabilities
Contract liabilities are comprised of the following:
 
        
   
June 30, 2025
    
March 31, 2025
 
Short-term contract liabilities
        
Customer allowances earned
$17,814,000   $16,283,000 
Customer core returns accruals
 14,826,000    13,880,000 
Core bank liability
 11,399,000    1,795,000 
Accrued core payment
 3,117,000    3,196,000 
Customer deposits
 2,137,000    2,486,000 
Finished goods liabilities
 103,000    518,000 
Total short-term contract liabilities
$49,396,000   $38,158,000 
Long-term contract liabilities
        
Customer core returns accruals
$236,875,000   $227,588,000 
Accrued core payment
 3,146,000    3,768,000 
Core bank liability
  -     10,048,000 
Total long-term contract liabilities
$240,021,000   $241,404,000 
v3.25.2
Leases (Tables)
 3 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Balance Sheet Information for Leases
Balance sheet information for leases is as follows:
 
           
Leases
 
Classification
  June 30,2025     March 31, 2025
Assets:
             
Operating
 
Operating lease assets
 $68,281,000    $66,603,000 
Finance
 
Plant and equipment
  5,309,000     4,296,000 
Total leased assets
    $73,590,000    $70,899,000 
               
Liabilities:
             
Current
             
Operating
 
Operating lease liabilities
 $10,196,000    $9,982,000 
Finance
 
Other current liabilities
  1,321,000     1,222,000 
Long-term
             
Operating
 
Long-term operating lease liabilities
  63,056,000     65,308,000 
Finance
 
Other liabilities
  3,268,000     1,954,000 
Total lease liabilities
    $77,841,000    $78,466,000 
Lease Cost Recognized in Consolidated Statement of Operations
Lease cost recognized in the condensed consolidated statements of operations is as follows:
 
           
  Three Months Ended
  June 30,
    2025       2024  
Lease cost
         
Operating lease cost
$3,490,000    $3,759,000 
Short-term lease cost
 216,000     312,000 
Variable lease cost
 133,000     164,000 
Finance lease cost:
         
Amortization of finance lease assets
 355,000     358,000 
Interest on finance lease liabilities
 74,000     51,000 
Total lease cost
$4,268,000    $4,644,000 
Maturity of Lease Commitments
Maturities of lease commitments at June 30, 2025 by fiscal year were as follows:
 
Maturity of lease liabilities by fiscal year
  Operating Leases       Finance Leases       Total  
2026- remaining nine months
$10,643,000    $1,279,000    $11,922,000 
2027  12,331,000     1,304,000     13,635,000 
2028  11,672,000     1,049,000     12,721,000 
2029   11,179,000     818,000     11,997,000 
2030  11,378,000     740,000     12,118,000 
Thereafter
 32,135,000     92,000     32,227,000 
Total lease payments
 89,338,000     5,282,000     94,620,000 
Less amount representing interest
 (16,086,000)     (693,000)     (16,779,000) 
Present value of lease liabilities
$73,252,000    $4,589,000    $77,841,000 
Other Information about Leases
Other information about leases is as follows:
 
    June 30, 2025       March 31, 2025  
Lease term and discount rate
         
Weighted-average remaining lease term (years):
         
Finance leases
 4.0     3.2 
Operating leases
 7.1     7.3 
Weighted-average discount rate:
         
Finance leases
 7.1%    7.0%
Operating leases
 5.8%    5.8%
v3.25.2
Accounts Receivable Discount Programs (Tables)
 3 Months Ended
Jun. 30, 2025
Accounts Receivable Discount Programs [Abstract]  
Accounts Receivable Discount Programs
The following is a summary of accounts receivable discount programs:
 
           
  Three Months Ended
  June 30,
    2025       2024  
Receivables discounted
$168,194,000    $144,541,000 
Weighted average number of days collection was accelerated
 345     342 
Annualized weighted average discount rate
 5.7%    6.9%
Amount of discount recognized as interest expense
$9,158,000    $9,507,000 
v3.25.2
Net Income (Loss) per Share (Tables)
 3 Months Ended
Jun. 30, 2025
Net Income (Loss) per Share [Abstract]  
Reconciliation of Basic and Diluted Net Income (Loss) Per Share
The following presents a reconciliation of basic and diluted net income (loss) per share:
 
    Three Months Ended      
    June 30,      
    2025       2024  
           
Net income (loss)
 $3,042,000    $(18,085,000) 
Basic shares
 19,369,060     19,674,539 
Effect of potentially dilutive securities
 548,603                  -    
Diluted shares
 19,917,663     19,674,539 
Net income (loss) per share:
         
Basic net income (loss) per share
$0.16    $(0.92) 
Diluted net income (loss) per share
$0.15    $(0.92) 
v3.25.2
Financial Risk Management and Derivatives (Tables)
 3 Months Ended
Jun. 30, 2025
Financial Risk Management and Derivatives [Abstract]  
Derivative Instruments on Consolidated Statements of Operations
The following shows the effect of derivative instruments on the condensed consolidated statements of operations:
 
         
     Foreign Exchange Impact of Lease
Liabilities and Forward Contracts    		  
     Three Months Ended      
Derivatives Not Designated as
   June 30,      
Hedging Instruments
   2025       2024  
Gain (loss) from forward foreign currency exchange contracts
 $4,346,000    $(5,369,000) 
v3.25.2
Fair Value Measurements (Tables)
 3 Months Ended
Jun. 30, 2025
Fair Value Measurements [Abstract]  
Financial Assets and Liabilities Measured at Fair Value Recurring Basis
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
 
                                  
                                  
                                  
        June 30, 2025        March 31, 2025  
        Fair Value Measurements        Fair Value Measurements  
        Using Inputs Considered as        Using Inputs Considered as  
     Fair Value      Level 1      Level 2      Level 3      Fair Value     Level 1      Level 2      Level 3  
Assets
                                        
Short-term investments
                                        
Mutual funds
 $2,011,000   $2,011,000   $          -    $          -    $  1,881,000   $1,881,000   $         -    $          -  
Prepaid expenses and other current assets
                                        
Forward foreign currency exchange contracts
  2,683,000     -     2,683,000     -     
-
    -      -      -  
                                          
Liabilities
                                        
Other current liabilities
                                        
Deferred compensation
  2,011,000    2,011,000     -      -     
1,881,000
   1,881,000     -      -  
Forward foreign currency exchange contracts
   -      -      -      -     
1,663,000
    -     1,663,000     -  
Convertible notes, related party Compound Net Derivative Liability
  9,260,000     -      -     9,260,000    
7,470,000
    -      -     7,470,000 
Fair Value Assumptions
The following assumptions were used to determine the fair value of the Compound Net Derivative Liability:
 
        
    June 30, 2025       March 31, 2025  
Risk free interest rate
 3.70%    3.91%
Cost of equity
 21.40%    21.30%
Weighted average cost of capital
 15.60%    14.90%
Expected volatility of the Company's common stock
 47.50%    40.00%
EBITDA volatility
 35.00%    45.00%
Activity for Level 3 Fair Value Measurements
The following summarizes the activity for Level 3 fair value measurements:
 
           
  Three Months Ended
  June 30,
    2025       2024  
Beginning balance
$7,470,000    $7,410,000 
Changes in fair value of Compound Net Derivative Liability included in earnings
 1,790,000     (2,580,000) 
Ending balance
$9,260,000    $4,830,000 
v3.25.2
Share-based Payments (Tables)
 3 Months Ended
Jun. 30, 2025
Share-based Payments [Abstract]  
Stock Option Transactions
The following is a summary of stock option transactions:

        
    Number of 
Shares 		     Weighted Average
Exercise Price
Outstanding at March 31, 2025
 1,053,561    $20.20 
Forfeited/Cancelled
 (4,220)    $22.64 
Outstanding at June 30, 2025
 1,049,341    $20.20 
Restricted Stock Units Activity
The following is a summary of non-vested RSUs:
 
        
    Number of Shares      Weighted Average
Grant Date Fair
Value 		 
Outstanding at March 31, 2025
 505,373   $7.26 
Granted
 428,552   $9.76 
Vested
 (121,364)   $9.49 
Forfeited/Cancelled
 (580)   $7.73 
Outstanding at June 30, 2025
 811,981   $8.25 
Monte Carlo Valuation Model Assumptions Used in Determining Fair Value of TSR Awards
The fair value of PSUs subject to a market condition is determined using the Monte Carlo simulation model. The following table summarizes the assumptions used in determining the fair value of the awards subject to market conditions:
 
           
  Three Months Ended
June 30,
   2025     2024  
Risk free interest rate
 3.86%    4.45%
Expected life in years  0.7-3.0     3 
Expected volatility of the Company's common stock
 66.80%    59.80%
Average correlation coefficient of peer companies
 15.70%    16.50%
Expected dividend yield
  -       -  
Grant date fair value
$7.33-12.68     $8.65 
Performance Stock Units Activity
The following is a summary of non-vested PSUs:
 
           
  Number of Shares     Weighted Average
Grant Date Fair
Value 		 
Outstanding at March 31, 2025
 764,387    $7.42 
Granted
 353,778    $10.57 
Vested
 (43,917)    $14.55 
Forfeited/Cancelled
 (76,101)    $13.65 
Outstanding at June 30, 2025
 998,147    $7.74 
v3.25.2
Commitments and Contingencies (Tables)
 3 Months Ended
Jun. 30, 2025
Commitments and Contingencies [Abstract]  
Changes in Warranty Returns
The following summarizes the changes in the warranty returns:
 
          
  Three Months Ended
June 30,
    2025      2024  
Balance at beginning of period
$19,677,000   $19,326,000 
Charged to expense
 38,453,000    33,352,000 
Amounts processed
 (39,999,000)    (37,632,000) 
Balance at end of period
$18,131,000   $15,046,000 
v3.25.2
Segment Information (Tables)
 3 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
Financial Information Relating to Segments
Financial information relating to the Company’s segments is as follows:
 
 Three Months Ended  
 June 30, 
  2025   2024 
        
Net sales to external customers for Hard Parts reportable segment
$174,889,000  $158,187,000 
Intersegment sales for Hard Parts reportable segment
 258,000   32,000 
Total net sales for Hard Parts reportable segment
 175,147,000   158,219,000 
        
Reconciliation of net sales
       
Other net sales (1)
 13,475,000   11,700,000 
Elimination of intersegment net sales
 (258,000)   (32,000) 
Total consolidated net sales
$188,364,000  $169,887,000 
        
Less (2):
       
Material, labor, and overhead expenses
 113,895,000   109,217,000 
Logistic expenses (3)
 30,665,000   22,778,000 
Revaluation of cores on customers' shelves
 1,026,000   394,000 
Foreign exchange impact of lease liabilities and forward contracts
 (8,348,000)   11,078,000 
Other segment items (4)
 19,477,000   21,211,000 
Total operating income (loss) for Hard Parts reportable segment
$18,432,000  $(6,459,000) 
        
Reconciliation of profit (loss)
       
Other operating income (loss) (1)
 1,633,000   (6,000) 
Elimination of intersegment operating income
 4,000   9,000 
Interest expense, net
 (12,812,000)   (14,387,000) 
Change in fair value of compound net derivative liability
 (1,790,000)   2,580,000 
Total consolidated income (loss) before income tax expense (benefit)
$5,467,000  $(18,263,000) 
        
Reconciliations of other significant items and assets:
       
        
Depreciation and amortization
       
Depreciation and amortization for Hard Parts reportable segment (5)
$2,232,000  $2,525,000 
Other depreciation and amortization (1)
 217,000   204,000 
Total consolidated depreciation and amortization
$2,449,000  $2,729,000 
        
Capital Expenditures
       
Captial expenditures for Hard Parts reportable segment
$394,000  $253,000 
Other capital expenditures (1)
 413,000   237,000 
Total consolidated capital expenditures
$807,000  $490,000 
        
        
Assets
 June 30, 2025   March 31, 2025 
Total assets for Hard Parts reportable segment
$981,161,000  $967,178,000 
Other assets (1)
 60,688,000   58,355,000 
Elimination of intersegment assets
 (68,499,000)   (67,897,000) 
Total consolidated assets
$973,350,000  $957,636,000 
 
(1)
Net sales, operating income (loss), depreciation and amortization, capital expenditures, and assets from segments below the quantitative threshold are attributable to the Company’s Test Solutions and Diagnostic Equipment and the Heavy Duty operating segments. Neither of these two operating segments has ever met any of the quantitative thresholds for determining reportable segments.
(2)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM for the Company’s Hard Parts reportable segment. Intersegment expenses are included within the amounts shown.
(3)
Logistic expenses include freight, tariffs, and customs duties.
(4)
Other segment items include general and administrative expenses, sales and marketing expenses, and research and development expenses.
(5)
Depreciation and amortization for the Company’s Hard Parts reportable segment are included within material, labor, and overhead expenses and other segment items.
v3.25.2
Accounts Receivable - Net - Accounts Receivable - Net (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Accounts Receivable, after Allowance for Credit Loss [Abstract]    
Accounts receivable — trade $ 109,041,000 $ 113,807,000
Allowance for credit losses (264,000) (207,000)
Customer payment discrepancies (2,015,000) (1,765,000)
Customer returns RGA issued (21,230,000) (20,771,000)
Total accounts receivable — net $ 85,532,000 $ 91,064,000
v3.25.2
Inventory - Net - Inventory - Net (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Inventory — net    
Raw materials $ 154,325,000 $ 150,274,000
Work-in-process 8,917,000 7,821,000
Finished goods 204,604,000 202,078,000
Inventory, gross 367,846,000 360,173,000
Less allowance for excess and obsolete inventory (19,566,000) (18,964,000)
Inventory 348,280,000 341,209,000
Inventory unreturned 18,492,000 18,460,000
Total inventory — net $ 366,772,000 $ 359,669,000
v3.25.2
Contract Assets (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Contract Assets [Abstract]    
Long-term contract assets, write-down $ 1,026,000 $ 394,000
v3.25.2
Contract Assets - Contract Assets (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Short-term contract assets    
Cores expected to be returned by customers $ 18,151,000 $ 17,732,000
Core premiums paid to customers 9,981,000 9,669,000
Upfront payments to customers 1,350,000 1,400,000
Finished goods premiums paid to customers 847,000 805,000
Total short-term contract assets 30,329,000 29,606,000
Long-term contract assets    
Remanufactured cores held at customers' locations 305,398,000 301,388,000
Core premiums paid to customers 25,131,000 24,714,000
Long-term core inventory deposits 5,569,000 5,569,000
Finished goods premiums paid to customers 2,627,000 2,483,000
Upfront payments to customers 1,804,000 2,114,000
Total long-term contract assets $ 340,529,000 $ 336,268,000
v3.25.2
Significant Customer and Other Information - Significant Customer and Other Information (Details)
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2025
Customer Concentration Risk [Member] | Customer A [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 39.00% 40.00%  
Customer Concentration Risk [Member] | Customer A [Member] | Accounts Receivable - Trade [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 48.00%   41.00%
Customer Concentration Risk [Member] | Customer B [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 24.00% 17.00%  
Customer Concentration Risk [Member] | Customer B [Member] | Accounts Receivable - Trade [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 23.00%   26.00%
Customer Concentration Risk [Member] | Customer C [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 22.00% 28.00%  
Customer Concentration Risk [Member] | Customer C [Member] | Accounts Receivable - Trade [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 0.00%   7.00%
Product Concentration Risk [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 100.00%   100.00%
Rotating Electrical Products [Member] | Product Concentration Risk [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 66.00%   65.00%
Brake-Related Products [Member] | Product Concentration Risk [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 23.00%   24.00%
Wheel Hub Products [Member] | Product Concentration Risk [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 6.00%   7.00%
Other Products [Member] | Product Concentration Risk [Member] | Net Sales [Member]      
Significant Customer and Other Information [Abstract]      
Concentration risk percentage 5.00%   4.00%
v3.25.2
Debt (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2025
Mar. 31, 2023
Amended Credit Facility [Abstract]        
Change in fair value of compound net derivative liability $ (1,790,000) $ 2,580,000    
Credit Facility [Member]        
Amended Credit Facility [Abstract]        
Maximum borrowing capacity $ 268,620,000      
Debt instrument, maturity date Dec. 12, 2028      
Percentage of aggregate revolving commitments 22.50%      
Revolving Facility [Member]        
Amended Credit Facility [Abstract]        
Interest rate at end of period 7.40%   7.46%  
Revolving Facility [Member] | Credit Facility [Member]        
Amended Credit Facility [Abstract]        
Maximum borrowing capacity $ 238,620,000      
Outstanding balance under revolving loan 86,856,000   $ 90,787,000  
Amount available under revolving facility 134,341,000      
Revolving Facility [Member] | Letters of Credit [Member]        
Amended Credit Facility [Abstract]        
Outstanding balance under revolving loan 11,888,000      
Term Loans [Member] | Credit Facility [Member]        
Amended Credit Facility [Abstract]        
Maximum borrowing capacity 30,000,000      
Convertible Notes [Member]        
Amended Credit Facility [Abstract]        
Interest rate at end of period       10.00%
Principal amount of Convertible Notes 38,730,000   $ 35,209,000 $ 32,000,000
Interest paid in-kind $ 3,521,000      
Conversion price (in Dollars per share) $ 15      
Effective interest rate 18.30%   18.30%  
Warrants maturity date Mar. 30, 2029      
Warrants fair value $ 0   $ 0  
Derivative liability 12,900,000   9,000,000  
Derivative assets 3,640,000   $ 1,530,000  
Change in fair value of compound net derivative liability (1,790,000) $ 2,580,000    
Total payments $ 56,704,000      
v3.25.2
Debt - Convertible Debt (Details) - Convertible Notes [Member] - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Mar. 31, 2023
Convertible Notes [Abstract]      
Principal amount of Convertible Notes $ 38,730,000 $ 35,209,000 $ 32,000,000
Less: unamortized debt discount attributed to Compound Net Derivative Liability (6,271,000) (6,556,000)  
Less: unamortized debt discount attributed to debt issuance costs (875,000) (916,000)  
Carrying amount of the Convertible Notes 31,584,000 27,737,000  
Plus: Compound Net Derivative Liability 9,260,000 7,470,000  
Net carrying amount of Convertible Notes, related party $ 40,844,000 $ 35,207,000  
v3.25.2
Debt - Total Interest Expense Recognized Related to Convertible Notes (Details) - Convertible Notes [Member] - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Interest expense on Convertible Notes    
Contractual interest expense $ 968,000 $ 880,000
Accretion of debt discount 285,000 238,000
Amortization of debt issuance costs 41,000 33,000
Total interest expense on Convertible Notes $ 1,294,000 $ 1,151,000
v3.25.2
Contract Liabilities - Contract Liabilities (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Short-term contract liabilities    
Customer allowances earned $ 17,814,000 $ 16,283,000
Customer core returns accruals 14,826,000 13,880,000
Core bank liability 11,399,000 1,795,000
Accrued core payment 3,117,000 3,196,000
Customer deposits 2,137,000 2,486,000
Finished goods liabilities 103,000 518,000
Total short-term contract liabilities 49,396,000 38,158,000
Long-term contract liabilities    
Customer core returns accruals 236,875,000 227,588,000
Accrued core payment 3,146,000 3,768,000
Core bank liability 0 10,048,000
Total long-term contract liabilities $ 240,021,000 $ 241,404,000
v3.25.2
Leases (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Leases [Abstract]    
Gain (loss) in foreign currency-denominated lease liabilities $ 4,002,000 $ (5,709,000)
Impairment $ 0  
v3.25.2
Leases - Balance Sheet Information (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Assets:    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Operating, Operating lease assets Operating, Operating lease assets
Operating, Operating lease assets $ 68,281,000 $ 66,603,000
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Plant and equipment — net Plant and equipment — net
Finance, Plant and equipment $ 5,309,000 $ 4,296,000
Total leased assets $ 73,590,000 $ 70,899,000
Liabilities:    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating, Operating lease liabilities Operating, Operating lease liabilities
Operating, Operating lease liabilities $ 10,196,000 $ 9,982,000
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Finance, Other current liabilities $ 1,321,000 $ 1,222,000
Long-term    
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Operating, Long-term operating lease liabilities Operating, Long-term operating lease liabilities
Operating, Long-term operating lease liabilities $ 63,056,000 $ 65,308,000
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Finance, Other liabilities $ 3,268,000 $ 1,954,000
Total lease liabilities $ 77,841,000 $ 78,466,000
v3.25.2
Leases - Lease Cost Recognized in Consolidated Statement of Operations (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Lease cost    
Operating lease cost $ 3,490,000 $ 3,759,000
Short-term lease cost 216,000 312,000
Variable lease cost 133,000 164,000
Finance lease cost:    
Amortization of finance lease assets 355,000 358,000
Interest on finance lease liabilities 74,000 51,000
Total lease cost $ 4,268,000 $ 4,644,000
v3.25.2
Leases - Maturity of Lease Commitments (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Leases [Abstract]    
2026- remaining nine months $ 10,643,000  
2026- remaining nine months 1,279,000  
2026- remaining nine months 11,922,000  
2027 12,331,000  
2027 1,304,000  
2027 13,635,000  
2028 11,672,000  
2028 1,049,000  
2028 12,721,000  
2029 11,179,000  
2029 818,000  
2029 11,997,000  
2030 11,378,000  
2030 740,000  
2030 12,118,000  
Thereafter 32,135,000  
Thereafter 92,000  
Thereafter 32,227,000  
Total lease payments 89,338,000  
Total lease payments 5,282,000  
Total lease payments 94,620,000  
Less amount representing interest (16,086,000)  
Less amount representing interest (693,000)  
Less amount representing interest (16,779,000)  
Present value of lease liabilities 73,252,000  
Present value of lease liabilities 4,589,000  
Present value of lease liabilities $ 77,841,000 $ 78,466,000
v3.25.2
Leases - Other Information about Leases (Details)
Jun. 30, 2025
Mar. 31, 2025
Weighted-average remaining lease term (years):    
Finance leases 4 years 3 years 2 months 12 days
Operating leases 7 years 1 month 6 days 7 years 3 months 18 days
Weighted-average discount rate:    
Finance leases 7.10% 7.00%
Operating leases 5.80% 5.80%
v3.25.2
Accounts Receivable Discount Programs - Accounts Receivable Discount Programs (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Accounts Receivable Discount Programs [Abstract]    
Receivables discounted $ 168,194,000 $ 144,541,000
Weighted average number of days collection was accelerated 345 days 342 days
Annualized weighted average discount rate 5.70% 6.90%
Amount of discount recognized as interest expense $ 9,158,000 $ 9,507,000
v3.25.2
Supplier Finance Programs (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Supplier Finance Programs [Abstract]    
Amount available under program $ 30,000,000 $ 30,000,000
Outstanding supplier obligations $ 31,292,000 $ 33,661,000
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] Accounts payable and accrued liabilities  
v3.25.2
Net Income (Loss) per Share (Details) - shares
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Potential Common Shares [Member]    
Net Income (Loss) per Share [Abstract]    
Antidilutive shares excluded from computation of earnings per share (in Shares) 1,049,341 2,285,834
Convertible Notes [Member]    
Net Income (Loss) per Share [Abstract]    
Antidilutive shares excluded from computation of earnings per share (in Shares) 2,646,535 2,405,941
v3.25.2
Net Income (Loss) per Share - Net Income (Loss) per Share (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Reconciliation of basic and diluted net loss per share [Abstract]    
Net income (loss) (in Dollars) $ 3,042,000 $ (18,085,000)
Basic shares (in Shares) 19,369,060 19,674,539
Effect of potentially dilutive securities (in Shares) 548,603 0
Diluted shares (in Shares) 19,917,663 19,674,539
Net income (loss) per share:    
Basic net income (loss) per share (in Dollars per share) $ 0.16 $ (0.92)
Diluted net income (loss) per share (in Dollars per share) $ 0.15 $ (0.92)
v3.25.2
Income Taxes (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Income Taxes [Abstract]    
Income tax expense (benefit) $ 2,425,000 $ (178,000)
Effective income tax rate 44.40% 1.00%
v3.25.2
Financial Risk Management and Derivatives (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Foreign Currency Exchange Contracts [Abstract]    
Forward foreign currency exchange contracts included in prepaid and other current assets $ 2,683,000  
Forward foreign currency exchange contracts included in other current liabilities   $ 1,663,000
Forward Foreign Currency Exchange Contracts [Member]    
Foreign Currency Exchange Contracts [Abstract]    
Notional amount of foreign currency derivatives $ 42,531,000 $ 45,921,000
Forward Foreign Currency Exchange Contracts [Member] | Maximum [Member]    
Foreign Currency Exchange Contracts [Abstract]    
Derivative, term of contract 1 year  
v3.25.2
Financial Risk Management and Derivatives - Financial Risk Management and Derivatives (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Forward Foreign Currency Exchange Contracts [Member] | Foreign Exchange Impact of Lease Liabilities and Forward Contracts [Member]    
Foreign Currency Exchange Contracts [Abstract]    
Gain (loss) from forward foreign currency exchange contracts $ 4,346,000 $ (5,369,000)
v3.25.2
Fair Value Measurements (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Compound Net Derivative Liability [Member]    
Fair Value Measurements [Abstract]    
Net carrying amount of convertible notes $ 40,844,000 $ 35,207,000
Convertible Notes [Member] | Level 3 [Member]    
Fair Value Measurements [Abstract]    
Estimated fair value of convertible notes $ 51,514,000 $ 42,398,000
v3.25.2
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - Recurring [Member] - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Short-term investments    
Mutual funds $ 2,011,000 $ 1,881,000
Prepaid expenses and other current assets    
Forward foreign currency exchange contracts 2,683,000 0
Other current liabilities    
Deferred compensation 2,011,000 1,881,000
Forward foreign currency exchange contracts 0 1,663,000
Compound Net Derivative Liability 9,260,000 7,470,000
Level 1 [Member]    
Short-term investments    
Mutual funds 2,011,000 1,881,000
Prepaid expenses and other current assets    
Forward foreign currency exchange contracts 0 0
Other current liabilities    
Deferred compensation 2,011,000 1,881,000
Forward foreign currency exchange contracts 0 0
Compound Net Derivative Liability 0 0
Level 2 [Member]    
Short-term investments    
Mutual funds 0 0
Prepaid expenses and other current assets    
Forward foreign currency exchange contracts 2,683,000 0
Other current liabilities    
Deferred compensation 0 0
Forward foreign currency exchange contracts 0 1,663,000
Compound Net Derivative Liability 0 0
Level 3 [Member]    
Short-term investments    
Mutual funds 0 0
Prepaid expenses and other current assets    
Forward foreign currency exchange contracts 0 0
Other current liabilities    
Deferred compensation 0 0
Forward foreign currency exchange contracts 0 0
Compound Net Derivative Liability $ 9,260,000 $ 7,470,000
v3.25.2
Fair Value Measurements - Fair Value Assumptions (Details) - Compound Net Derivative Liability [Member]
Jun. 30, 2025
Mar. 31, 2025
Risk Free Interest Rate [Member]    
Fair Value Measurements [Abstract]    
Assumptions for fair value of Compound Net Derivative Liability 0.037 0.0391
Cost of Equity [Member]    
Fair Value Measurements [Abstract]    
Assumptions for fair value of Compound Net Derivative Liability 0.214 0.213
Weighted Average Cost of Capital [Member]    
Fair Value Measurements [Abstract]    
Assumptions for fair value of Compound Net Derivative Liability 0.156 0.149
Expected Volatility of the Company's Common Stock [Member]    
Fair Value Measurements [Abstract]    
Assumptions for fair value of Compound Net Derivative Liability 0.475 0.40
EBITDA Volatility [Member]    
Fair Value Measurements [Abstract]    
Assumptions for fair value of Compound Net Derivative Liability 0.35 0.45
v3.25.2
Fair Value Measurements - Activity for Level 3 Fair Value Measurements (Details) - Compound Net Derivative Liability [Member] - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Fair Value Measurements [Abstract]    
Beginning balance $ 7,470,000 $ 7,410,000
Changes in fair value of Compound Net Derivative Liability included in earnings 1,790,000 (2,580,000)
Ending balance $ 9,260,000 $ 4,830,000
v3.25.2
Share-based Payments - Stock Options (Details) - Stock Options [Member] - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Share-based Payments [Abstract]    
Granted (in Shares) 0 0
Number of stock options unvested (in Shares) 87,288  
Weighted average exercise price of stock options unvested (in Dollars per share) $ 9.32  
Total unrecognized compensation expense (in Dollars) $ 201,000  
Weighted average remaining vesting period over which compensation expense is expected to be recognized 1 year 2 months 12 days  
v3.25.2
Share-based Payments - Stock Option Transactions (Details) - Stock Options [Member]
 3 Months Ended
Jun. 30, 2025
$ / shares
shares
Share-based Payments [Abstract]  
Outstanding at beginning of period (in Shares) | shares 1,053,561
Outstanding at beginning of period (in Dollars per share) | $ / shares $ 20.2
Forfeited/Cancelled (in Shares) | shares (4,220)
Forfeited/Cancelled (in Dollars per share) | $ / shares $ 22.64
Outstanding at end of period (in Shares) | shares 1,049,341
Outstanding at end of period (in Dollars per share) | $ / shares $ 20.2
v3.25.2
Share-based Payments - Restricted Stock Units (“RSUs”) (Details) - Restricted Stock [Member] - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Share-based Payments [Abstract]    
Granted (in Shares) 428,552 207,050
Total unrecognized compensation expense (in Dollars) $ 5,931,000  
Weighted average remaining vesting period over which compensation expense is expected to be recognized 2 years 8 months 12 days  
v3.25.2
Share-based Payments - Restricted Stock Units (Details) - Restricted Stock [Member] - $ / shares
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Number of Shares [Roll Forward]    
Non-vested at beginning of period (in Shares) 505,373  
Non-vested at beginning of period (in Dollars per share) $ 7.26  
Granted (in Shares) 428,552 207,050
Granted (in Dollars per share) $ 9.76  
Vested (in Shares) (121,364)  
Vested (in Dollars per share) $ 9.49  
Forfeited/Cancelled (in Shares) (580)  
Forfeited/Cancelled (in Dollars per share) $ 7.73  
Non-vested at end of period (in Shares) 811,981  
Non-vested at end of period (in Dollars per share) $ 8.25  
v3.25.2
Share-based Payments - Performance Stock Units (“PSUs”) (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Performance Stock Units [Member]    
Share-based Payments [Abstract]    
Granted (in Shares) 353,778 155,391
Vesting period 3 years 3 years
Total unrecognized compensation expense (in Dollars) $ 5,256,000  
Weighted average remaining vesting period over which compensation expense is expected to be recognized 2 years 2 months 12 days  
Stock Price PSUs [Member]    
Share-based Payments [Abstract]    
Granted (in Shares) 176,893 0
Number of trading days 30 days  
Total Shareholder Return PSUs [Member]    
Share-based Payments [Abstract]    
Granted (in Shares) 176,885 155,391
Vesting period 3 years  
Number of trading days 30 days  
Market capitalization (in Dollars) $ 600,000,000  
Tranche One [Member] | Stock Price PSUs [Member]    
Share-based Payments [Abstract]    
Stock price (in Dollars per share) $ 15  
Percentage of vesting of award 0.33%  
Share-Based Payment Arrangement, Tranche Two [Member] | Stock Price PSUs [Member]    
Share-based Payments [Abstract]    
Stock price (in Dollars per share) $ 17  
Percentage of vesting of award 0.33%  
Tranche Three [Member] | Stock Price PSUs [Member]    
Share-based Payments [Abstract]    
Stock price (in Dollars per share) $ 20  
Percentage of vesting of award 0.33%  
Minimum [Member] | Total Shareholder Return PSUs [Member]    
Share-based Payments [Abstract]    
Awards vesting target percentage 0.00%  
Minimum [Member] | Tranche Three [Member] | Stock Price PSUs [Member]    
Share-based Payments [Abstract]    
Stock price (in Dollars per share) $ 18  
Eligible vesting percentage for recipients 50.00%  
Maximum [Member] | Total Shareholder Return PSUs [Member]    
Share-based Payments [Abstract]    
Awards vesting target percentage 150.00%  
Maximum [Member] | Tranche Three [Member] | Stock Price PSUs [Member]    
Share-based Payments [Abstract]    
Stock price (in Dollars per share) $ 22  
Eligible vesting percentage for recipients 150.00%  
v3.25.2
Share-based Payments - Monte Carlo Valuation Model Assumptions Used in Determining Fair Value of TSR Awards (Details) - Performance Stock Units [Member] - $ / shares
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Share-based Payments [Abstract]    
Risk free interest rate 3.86% 4.45%
Expected life in years   3 years
Expected volatility of the Company's common stock 66.80% 59.80%
Average correlation coefficient of peer companies 15.70% 16.50%
Expected dividend yield 0.00% 0.00%
Grant date fair value (in Dollars per share)   $ 8.65
Minimum [Member]    
Share-based Payments [Abstract]    
Expected life in years 8 months 12 days  
Grant date fair value (in Dollars per share) $ 7.33  
Maximum [Member]    
Share-based Payments [Abstract]    
Expected life in years 3 years  
Grant date fair value (in Dollars per share) $ 12.68  
v3.25.2
Share-based Payments - Performance Stock Units Activity (Details) - Performance Shares [Member] - $ / shares
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Share-based Payments [Abstract]    
Non-vested at beginning of period (in Shares) 764,387  
Non-vested at beginning of period (in Dollars per share) $ 7.42  
Granted (in Shares) 353,778 155,391
Granted (in Dollars per share) $ 10.57  
Vested (in Shares) (43,917)  
Vested (in Dollars per share) $ 14.55  
Forfeited/Cancelled (in Shares) (76,101)  
Forfeited/Cancelled (in Dollars per share) $ 13.65  
Non-vested at end of period (in Shares) 998,147  
Non-vested at end of period (in Dollars per share) $ 7.74  
v3.25.2
Commitments and Contingencies (Details) - USD ($)
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Change in warranty returns [Roll Forward]        
Total warranty return accrual $ 18,131,000 $ 19,677,000 $ 15,046,000 $ 19,326,000
Customer Returns RGA Issued [Member]        
Change in warranty returns [Roll Forward]        
Total warranty return accrual 7,222,000 6,478,000    
Customer Finished Goods Returns Accrual [Member]        
Change in warranty returns [Roll Forward]        
Total warranty return accrual $ 10,909,000 $ 13,199,000    
v3.25.2
Commitments and Contingencies - Changes in Warranty Returns (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Change in warranty returns [Roll Forward]    
Balance at beginning of period $ 19,677,000 $ 19,326,000
Charged to expense 38,453,000 33,352,000
Amounts processed (39,999,000) (37,632,000)
Balance at end of period $ 18,131,000 $ 15,046,000
v3.25.2
Segment Information (Details)
 3 Months Ended
Jun. 30, 2025
Segment
Segment Information [Abstract]  
Number of operating segments 3
Number of operating segments not meeting quantitative thresholds 2
Segment reporting, other segment item, composition, description Other segment items include general and administrative expenses, sales and marketing expenses, and research and development expenses.
v3.25.2
Segment Information - Financial Information Relating to Segments (Details) - USD ($)
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2025
Segment Information [Abstract]      
Net sales $ 188,364,000 $ 169,887,000  
Foreign exchange impact of lease liabilities and forward contracts (8,348,000) 11,078,000  
Operating income (loss) 20,069,000 (6,456,000)  
Interest expense, net (12,812,000) (14,387,000)  
Change in fair value of compound net derivative liability (1,790,000) 2,580,000  
Total consolidated income (loss) before income tax expense (benefit) 5,467,000 (18,263,000)  
Captial expenditures 807,000 490,000  
Segment assets 973,350,000   $ 957,636,000
Operating Segments [Member]      
Segment Information [Abstract]      
Depreciation and amortization 2,449,000 2,729,000  
Intersegment Sales [Member]      
Segment Information [Abstract]      
Net sales (258,000) (32,000)  
Operating income (loss) 4,000 9,000  
Segment assets (68,499,000)   (67,897,000)
Hard Parts [Member] | Operating Segments [Member]      
Segment Information [Abstract]      
Net sales 175,147,000 158,219,000  
Material, labor, and overhead expenses [1] 113,895,000 109,217,000  
Logistic expenses [1],[2] 30,665,000 22,778,000  
Revaluation of cores on customers' shelves [1] 1,026,000 394,000  
Foreign exchange impact of lease liabilities and forward contracts [1] (8,348,000) 11,078,000  
Other segment items [1],[3] 19,477,000 21,211,000  
Operating income (loss) [1] 18,432,000 (6,459,000)  
Depreciation and amortization [4] 2,232,000 2,525,000  
Captial expenditures 394,000 253,000  
Segment assets 981,161,000   967,178,000
Hard Parts [Member] | Operating Segments [Member] | External Customers [Member]      
Segment Information [Abstract]      
Net sales 174,889,000 158,187,000  
Hard Parts [Member] | Intersegment Sales [Member]      
Segment Information [Abstract]      
Net sales 258,000 32,000  
All Other [Member] | Operating Segments [Member]      
Segment Information [Abstract]      
Net sales [5] 13,475,000 11,700,000  
Operating income (loss) [5] 1,633,000 (6,000)  
Depreciation and amortization [5] 217,000 204,000  
Captial expenditures [5] 413,000 $ 237,000  
Segment assets [5] $ 60,688,000   $ 58,355,000
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM for the Company’s Hard Parts reportable segment. Intersegment expenses are included within the amounts shown.
[2] Logistic expenses include freight, tariffs, and customs duties.
[3] Other segment items include general and administrative expenses, sales and marketing expenses, and research and development expenses.
[4] Depreciation and amortization for the Company’s Hard Parts reportable segment are included within material, labor, and overhead expenses and other segment items.
[5] Net sales, operating income (loss), depreciation and amortization, capital expenditures, and assets from segments below the quantitative threshold are attributable to the Company’s Test Solutions and Diagnostic Equipment and the Heavy Duty operating segments. Neither of these two operating segments has ever met any of the quantitative thresholds for determining reportable segments.
v3.25.2
Share Repurchases (Details) - Common Stock [Member] - USD ($)
 3 Months Ended
Jun. 30, 2025
Aug. 31, 2018
Stock Repurchases [Abstract]    
Stock repurchase program, approved amount $ 37,000,000 $ 20,000,000
Repurchase of shares (in Shares) 197,796  
Repurchase of shares $ 1,966,000  
Shares utilized, amount 25,543,000  
Shares available for repurchase, amount $ 11,457,000  
Shares repurchased and retired (in Shares) 1,576,937  
v3.25.2
Related Party Transactions (Details) - Manufacturing Facility [Member] - Company Co-owned by Member of Management [Member]
 3 Months Ended
Jun. 30, 2025
USD ($)
ft²
Jun. 30, 2024
USD ($)
Related Party Transactions [Abstract]    
Area of facility (in Square Feet) | ft² 35,000  
Operating lease, renewal term 3 years  
Rent expenses | $ $ 93,000 $ 81,000