Leases

3 Months Ended

Jun. 30, 2023

LeasesSubstantially all the 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. The lease expiration dates range from July 31, 2023 to February 28, 2030.

Substantially all of the Company’s leases are classified as operating leases. Operating lease agreements are required to be recognized on the Company’s 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:


	Three months ended June 30,
	2023	2022
Weighted average term - operating lease liabilities	2.77 years	3.37 years
Weighted average incremental borrowing rate - operating lease liabilities	12%	13%

Rent expense amounted to approximately $0.5 million and $0.5 million, respectively, for the three months ended June 30, 2023 and 2022, which is included in general and administrative expenses on the Company’s Consolidated Statements of Operations.

The following table presents net lease cost for the three months ended June 30, 2023 and 2022 (in thousands):


	Three months ended June 30,
	2023		2022
Lease cost
Operating lease cost (cost resulting from lease payments)	$	507	$	449
Short term lease cost	—		4

Net lease cost	$	507	$	453

The following table presents supplemental cash flow and non-cash activity information for the three months ended June 30, 2023 and 2022 (in thousands):


	Three months ended June 30,
	2023		2022
Cash paid activity:
Operating lease - operating cash flows (fixed payments)	$	574	$	543
Operating lease - operating cash flows (liability reduction)	$	388	$	327
Non-cash activity:
Right of use assets obtained in exchange for new operating lease liabilities	$	65	$	50

The following table presents supplemental balance sheet information as of June 30, 2023 and March 31, 2023 (in thousands):


	June 30, 2023		March 31, 2023
Non-current assets - right of use assets, net	$	3,088	$	3,371
Current liabilities - operating lease liabilities	$	1,662	$	1,725
Non-current liabilities - operating lease liabilities	$	2,597	$	2,922

Future minimum payments under existing 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 three months ended June 30, 2023, are as follows (in thousands):


Fiscal Year	Operating Leases
2024 (excluding the three months ended June 30, 2023)	$	1,585
2025	1,715
2026	958
2027	536
2028	172
After 2028	38
Total future minimum lease payments	5,004
Amount representing interest	(745)
Present value of net future minimum lease payments	$	4,259