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Commitments and Contingencies
 12 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

7. COMMITMENTS AND CONTINGENCIES

 

We operate from leased properties under non-cancelable operating lease agreements, certain of which contain escalating lease clauses.

  

The Company leases office space under an operating lease. The Company’s portfolio of leases is primarily related to real estate and since most of our leases do not provide a readily determinable implicit rate, the Company estimated its incremental borrowing rate to discount the lease payments based on information available at either the implementation date of Topic 842 or at lease commencement for leases entered into thereafter.

 

The table below presents the lease-related assets and liabilities recorded on the balance sheet as of March 31, 2022 and March 31, 2021:

 

(In thousands)  Classification on the Balance Sheet  March 31, 2022   March 31,
2021		 
Assets           
Noncurrent  Operating lease right-of-use asset  $749   $100 
Liabilities             
Current  Operating leases – current portion   258    87 
Noncurrent  Operating leases – long-term portion   491    13 
Total operating lease liabilities     $749   $100 

 

The weighted average life remaining is 35 months and the weighted average interest rate 3.38%.

 

Lease Costs

 

The table below presents certain information related to lease costs for leases:

 

   Year Ended   Year Ended 
(In thousands)  March 31,
2022		   March 31,
2021		 
Operating lease cost  $125   $195 
Total lease cost  $125   $195 

 

Other Information

 

The table below presents supplemental cash flow information related to leases:

 

   Year Ended   Year Ended 
(In thousands)  March 31,
2022		   March 31,
2021		 
Cash paid for amounts included in the measurement of lease liabilities   83    197 
Operating cash flows used for operating leases  $83   $197 

 

Distribution arrangement minimum guaranty

 

On September 1, 2021 the Company extended a video works distribution arrangement providing a non-refundable and fully-recoupable advance minimum participation guaranty for a total amount of $3.5 million, where $1.5 million is payable no later than November 1, 2021, $1.0 million at the first year anniversary of the arrangement and $0.9 million on the second-year anniversary of the arrangement. These payments are subject to the selection of video works released by the Company whose initial commercial date occurs during the arrangement year. The Company paid the first advance on October 22, 2021.

 

Hyde Park Agreement

 

On January 5, 2022, the Company entered into a letter agreement with Hyde Park Entertainment, Inc. (“Hyde Park”), pursuant to which the Company and Hyde Park are collaborating on the development, production and/or distribution of a project based on the novel Audition by Ryu Murakami (the “Audition Project”). Each of the Company and Hyde Park owns 50% of the rights in connection with the Audition Project. The Company paid $100 thousand to Hyde Park plus $26 thousand in legal fees to counsel for the Audition project. Ashok Amritraj, a director of the Company, is the Chairman and CEO of Hyde Park and has an interest in 100% of the revenues of Hyde Park. Ashok Amritraj is a current board member and related party to the Company.