Cineverse is a virtual company with one domestic operating lease, acquired through the acquisition of DMR which property is subleased to a third party. The Company has not been relieved of the original lease obligation and therefore recognizes both a lease liability and right-of-use asset as part of the arrangement. The end of both the original lease and sublease term is January 2025. In addition, the Company has two operating leases related to its Cineverse India operations, with expiration dates in July 2027. Expenses related to these leases were $117 thousand and $351 thousand during the three and nine months ended December 31, 2024, respectively, and $109 thousand and $337 thousand during the three and nine months ended December 31, 2023, respectively.

The Company recognized $46 thousand and $138 thousand of income related to its subleasing arrangement during the three and nine months ended December 31, 2024, respectively, and $45 thousand and $135 thousand for the three and nine months ended December 31, 2023, respectively.

The table below presents the lease-related assets and liabilities recorded on our Consolidated Balance Sheets (in thousands):


	Classification on the Balance Sheet	December 31, 2024		March 31, 2024
Assets
Noncurrent	Other long-term assets	$	502	$	834
Liabilities
Current	Operating leases liabilities		207		401
Noncurrent	Operating leases liabilities, net of current		324		462
		$	531	$	863

The table below presents the annual gross undiscounted cash flows related to the Company's operating lease commitments (in thousands):


Fiscal year ending March 31,	Operating Lease Commitments
2025 (remainder of the fiscal year)	$	72
2026		200
2027		210
2028		72
Thereafter		—
Total lease payments	$	554
Less imputed interest		(23	)
Total	$	531

For leases which have a term of twelve months or less and do not contain an option to extend which the Company is reasonably certain to extend the term, the Company has elected to not apply the recognition provisions of ASC 842, Leases, and recognizes these expenses on a straight-line basis over the term of the agreement.

The table below presents the annual gross undiscounted cash flows related to the Company's operating lease subleasing arrangements (in thousands):


Fiscal year ending March 31,	Sublease Payments
2025	$	15
Thereafter		—
Total	$	15