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COMMITMENTS AND CONTINGENCIES | 9 Months Ended
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Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk, consisting primarily of unused commitments to extend financing to the Company’s portfolio companies. Because commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Additionally, our commitment to fund delayed draw term loans generally is triggered upon the satisfaction of certain pre-negotiated terms and conditions, such as meeting certain financial performance hurdles or financial covenants, which may limit a borrower's ability to draw on such delayed draw term loans. The balances of unused commitments to extend financing as of December 31, 2022 and March 31, 2022 were as follows (amounts in thousands):
|  | December 31, |  | March 31,
Portfolio Company |  | 2022 |  | 2022
Revolving Loans |  |  |  |
Acacia BuyerCo V LLC |  | $ | 2,000 |  |  | $ | — |
Acceleration, LLC |  | 5,000 |  |  | — |
Air Conditioning Specialist, Inc. |  | 1,000 |  |  | 1,000 |
American Teleconferencing Services, Ltd. (DBA Premiere Global Services, Inc.) |  | 148 |  |  | 117 |
ArborWorks, LLC |  | 1,000 |  |  | 3,000 |
ATS Operating, LLC |  | 2,500 |  |  | 1,500 |
Cadmium, LLC |  | — |  |  | 308 |
Catbird NYC, LLC |  | 4,000 |  |  | 4,000 |
Central Medical Supply LLC |  | 1,200 |  |  | 1,200 |
Dynamic Communities, LLC |  | — |  |  | 500 |
Exact Borrower, LLC |  | 2,500 |  |  | — |
Fast Sandwich, LLC |  | — |  |  | 3,100 |
FM Sylvan, Inc. |  | 10,000 |  |  | — |
Gains Intermediate, LLC |  | 2,500 |  |  | — |
GrammaTech, Inc. |  | 2,500 |  |  | 2,500 |
GS Operating, LLC |  | — |  |  | 1,540 |
Gulf Pacific Acquisition, LLC |  | 757 |  |  | — |
ISI Enterprises, LLC |  | 1,200 |  |  | 1,200 |
ITA Holdings Group, LLC |  | — |  |  | 1,250 |
Klein Hersh, LLC |  | — |  |  | 938 |
Lash OpCo, LLC |  | 247 |  |  | 481 |
Lighting Retrofit International, LLC (DBA Envocore) |  | 2,083 |  |  | 2,083 |
Lightning Intermediate II, LLC |  | 1,852 |  |  | — |
Mako Steel LP |  | 283 |  |  | 943 |
Microbe Formulas LLC |  | 1,627 |  |  | — |
Muenster Milling Company, LLC |  | 7,000 |  |  | 5,000 |
NeuroPsychiatric Hospitals, LLC |  | 600 |  |  | 600 |
New Skinny Mixes, LLC |  | 4,000 |  |  | — |
NinjaTrader, Inc. |  | 2,500 |  |  | 2,500 |
NWN Parent Holdings, LLC |  | 90 |  |  | 1,380 |
Opco Borrower, LLC (DBA Giving Home Health Care) |  | 667 |  |  | — |
Outerbox, LLC |  | 2,000 |  |  | — |
|  | December 31, |  | March 31,
Portfolio Company |  | 2022 |  | 2022
Pipeline Technique Ltd. |  | 3,333 |  |  | — |
Roof OpCo, LLC |  | 1,833 |  |  | 3,056 |
Roseland Management, LLC |  | 1,425 |  |  | 1,425 |
RTIC Subsidiary Holdings LLC |  | 822 |  |  | — |
Shearwater Research, Inc. |  | 2,446 |  |  | 2,446 |
SIB Holdings, LLC |  | 205 |  |  | 655 |
South Coast Terminals LLC |  | 1,935 |  |  | 1,935 |
Spotlight AR, LLC |  | 2,000 |  |  | 2,000 |
Student Resource Center, LLC |  | — |  |  | 1,333 |
Systec Corporation (DBA Inspire Automation) |  | 1,500 |  |  | 1,150 |
Versicare Management LLC |  | 2,500 |  |  | — |
Wall Street Prep, Inc. |  | 1,000 |  |  | 1,000 |
Well-Foam, Inc. |  | 4,500 |  |  | 4,500 |
Winter Services Operations, LLC |  | 4,444 |  |  | 2,000 |
Zenfolio Inc. |  | — |  |  | 1,000 |
Total Revolving Loans |  | 87,197 |  |  | 57,640 |
Delayed Draw Term Loans |  |  |  |
Acacia BuyerCo V LLC |  | 10,000 |  |  | — |
Acceleration, LLC |  | 5,000 |  |  | — |
Central Medical Supply LLC |  | 1,400 |  |  | 1,400 |
CityVet Inc. |  | — |  |  | 7,000 |
Exact Borrower, LLC |  | 2,500 |  |  | — |
Flip Electronics, LLC |  | — |  |  | 2,818 |
FoodPharma Subsidiary Holdings, LLC |  | — |  |  | 5,470 |
Gains Intermediate, LLC |  | 17,000 |  |  | — |
GS Operating, LLC |  | — |  |  | 3,205 |
Gulf Pacific Acquisition, LLC |  | 1,515 |  |  | — |
Infolinks Media Buyco, LLC |  | 2,250 |  |  | 2,250 |
KMS, LLC |  | 2,286 |  |  | 4,571 |
Lash OpCo, LLC |  | — |  |  | 2,846 |
Muenster Milling Company, LLC |  | — |  |  | 6,000 |
NeuroPsychiatric Hospitals, LLC |  | — |  |  | 10,000 |
New Skinny Mixes, LLC |  | 3,000 |  |  | — |
NinjaTrader, Inc. |  | 4,692 |  |  | 4,692 |
Roof OpCo, LLC |  | — |  |  | 4,644 |
Shearwater Research, Inc. |  | — |  |  | 3,262 |
SIB Holdings, LLC |  | — |  |  | 1,871 |
STATinMED, LLC |  | 119 |  |  | — |
Systec Corporation (DBA Inspire Automation) |  | 3,000 |  |  | 3,000 |
US CourtScript Holdings, Inc. |  | 5,000 |  |  | — |
Versicare Management LLC |  | 5,000 |  |  | — |
Winter Services Operations, LLC |  | 4,444 |  |  | 4,444 |
Zips Car Wash, LLC - B |  | — |  |  | 3,801 |
|  | December 31, |  | March 31,
Portfolio Company |  | 2022 |  | 2022
Total Delayed Draw Term Loans |  | 67,206 |  |  | 71,274 |
Other |  |  |  |
Catbird NYC, LLC |  | 125 |  |  | 125 |
Infolinks Media Buyco, LLC |  | 412 |  |  | 412 |
I-45 SLF LLC |  | 4,800 |  |  | 4,800 |
Total Other |  | 5,337 |  |  | 5,337 |
Total unused commitments to extend financing |  | $ | 159,740 |  |  | $ | 134,251 |
As of December 31, 2022, total revolving and delayed draw loan commitments included commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. As of December 31, 2022, the Company had $0.9 million in letters of credit issued and outstanding under these commitments on behalf of portfolio companies. For all of these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. Of these letters of credit, $0.4 million expire in February 2023, $0.2 million expire in April 2023, and $0.3 million expire in August 2023. As of December 31, 2022, none of the letters of credit issued and outstanding were recorded as a liability on the Company's balance sheet as such letters of credit are considered in the valuation of the investments in the portfolio company. Effective April 1, 2019, ASC 842 required that a lessee evaluate its leases to determine whether they should be classified as operating or financing leases. The Company previously had an operating lease for its office space that commenced October 1, 2014 and expired February 28, 2022. In March 2021, the Company executed an agreement to lease new office space that commenced on February 1, 2022 and expires September 30, 2032. The Company identified the foregoing as an operating lease. ASC 842 indicates that an ROU asset and lease liability should be recorded based on the effective date. As such, CSWC recorded an ROU asset, which is included in other assets on the Consolidated Statements of Assets and Liabilities, and a lease liability, which is included in other liabilities on the Consolidated Statements of Assets and Liabilities, as of February 1, 2022. The Company has recorded lease expense on a straight-line basis. Total lease expense incurred for the three and nine months ended December 31, 2022 was $63.1 thousand and $189.2 thousand, respectively. For the three and nine months ended December 31, 2021, total lease expense incurred was $58.1 thousand and $174.4 thousand, respectively. As of December 31, 2022, the asset related to the operating lease was $1.9 million and the lease liability was $2.9 million. As of December 31, 2022, the remaining lease term was 9.8 years and the discount rate was 6.89%. The following table shows future minimum payments under the Company's operating leases as of December 31, 2022 (in thousands):
Year ending March 31, | Rent Commitment
2023 | $ | 92 |
2024 | 406 |
2025 | 416 |
2026 | 426 |
2027 | 436 |
Thereafter | 2,578 |
Total | $ | 4,354 |
Contingencies We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. To our knowledge, we have no currently pending material legal proceedings to which we are party or to which any of our assets are subject.

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