Cineverse operates in a remote environment without domestic operating leases. The Company previously maintained one domestic operating lease acquired through the acquisition of Digital Media Rights ("DMR"), which was subleased to a third-party. The Company was not relieved of its original lease obligation and therefore recognized both a lease liability and right-of-use asset as part of the arrangement through the end of the lease term in January 2025. In addition, the Company has three operating leases related to its Cineverse India operations, with expiration dates in July 2027. Expenses related to these leases were $74 thousand and $123 thousand during the three and six months ended September 30, 2025, respectively, and $117 thousand and $233 thousand during the three and six months ended September 30, 2024, respectively.

The Company did not have any sublease arrangements during the three and six months ended September 30, 2025, and accordingly did not recognize any sublease income. The Company recognized $46 thousand and $92 thousand of income related to its subleasing arrangement during the three and six months ended September 30, 2024, respectively.

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


		As of
	Classification on the Balance Sheet	September 30, 2025		March 31, 2025
Assets
Noncurrent	Other long-term assets	$	526	$	435
Liabilities
Current	Operating leases liabilities		293		187
Noncurrent	Operating leases liabilities, net of current		260		275
		$	553	$	462

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
2026 (remainder of the fiscal year)	$	150
2027		310
2028		105
Thereafter		—
Total lease payments	$	565
Less imputed interest		(12	)
Total	$	553

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 FASB ASC Topic 842, Leases ("ASC 842") and recognizes these expenses on a straight-line basis over the term of the agreement.