Leases

6 Months Ended

Sep. 30, 2022

All leases in which the Company is the lessee are comprised of corporate office space and tower space. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2023 through June 30, 2027, which includes lease extensions for its corporate headquarters ranging from three to ten years. The Company entered into multiple lease agreements for tower space with lease expiration dates ranging from November 30, 2022 to April 30, 2028.

All of the Company’s leases are classified as operating leases, and as such, were previously not recognized on the Company’s Consolidated Balance Sheet. With the adoption of ASC 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheet as right of use (“ROU”) assets and corresponding lease liabilities.

ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option.

Weighted-average remaining lease term and incremental borrowing rate for the Company’s operating leases are as follows:


	Six months ended September 30,
	2022	2021
Weighted average term - operating lease liabilities	3.17 years	4.04 years
Weighted average incremental borrowing rate - operating lease liabilities	13%	13%

Rent expense amounted to approximately $0.4 million and $0.9 million, respectively, for the three and six months ended September 30, 2022, which is included in general and administrative expenses in the Consolidated Statement of Operations. Rent expense amounted to approximately $0.5 million and $1.0 million, respectively, for the three and six months ended September 30, 2021, which is included in general and administrative expenses in the Consolidated Statement of Operations.

The following table presents net lease cost for the three and six months ended September 30, 2022 and 2021 (in thousands):


	Three months ended September 30,				Six months ended September 30,
	2022		2021		2022		2021
Lease cost
Operating lease cost (cost resulting from lease payments)	$	445	$	495	$	894	$	1,008
Short term lease cost	3		6		7		10

Net lease cost	$	448	$	501	$	901	$	1,018

The following table presents supplemental cash flow and non-cash activity information for the six months ended September 30, 2022 and 2021 (in thousands):


	Six months ended September 30,
	2022		2021
Cash paid activity:
Operating lease - operating cash flows (fixed payments)	$	1,080	$	1,155
Operating lease - operating cash flows (liability reduction)	$	699	$	735
Non-cash activity:
Right of use assets obtained in exchange for new operating lease liabilities	$	50	$	66

The following table presents supplemental balance sheet information as of September 30, 2022 and March 31, 2022 (in thousands):


	September 30, 2022		March 31, 2022
Non-current assets - right of use assets, net	$	3,529	$	4,047
Current liabilities - operating lease liabilities	$	1,626	$	1,512
Non-current liabilities - operating lease liabilities	$	3,364	$	4,177

Future minimum payments under non-cancelable leases for office and tower spaces (exclusive of real estate tax, utilities, maintenance and other costs borne by the Company) for the remaining terms of the leases following the six months ended September 30, 2022, are as follows (in thousands):


Fiscal Year	Operating Leases
2023 (excluding the six months ended September 30, 2022)	$	1,077
2024	2,000
2025	1,565
2026	871
2027	464
After 2027	129
Total future minimum lease payments	6,106
Amount representing interest	(1,116)
Present value of net future minimum lease payments	$	4,990