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Leases

6 Months Ended

Sep. 30, 2019

Note 11 — Leases

The Company leases a facility under a non-cancelable operating lease which expires in fiscal year 2022. Upon adoption of ASU 2016-02 and its related Updates, the Company recorded $0.2 million of right-of-use assets and operating lease liabilities. Operating lease cost for the three and six months ended September 30, 2019 was less than $0.1 million.

Supplemental balance sheet information related to leases was as follows (in thousands):

Operating leases	September 30, 2019
Operating lease right-of-use assets	$	164
Total operating lease right-of-use assets		164

Operating lease liability, current	$	77
Operating lease liability, noncurrent		87
Total operating lease liabilities	$	164

Maturities of operating lease liabilities as of September 30, 2019 were as follows (in thousands):

For Years Ending March 31,
2020 (remaining six months)	$	47
2021		94
2022		47
Total lease payments		188
Less: imputed interest		(24	)
Present value of operating lease liabilities	$	164

Significant judgments

Discount rate – the Company's lease is discounted using the Company's incremental borrowing rate of 12.75% as the rate implicit in the lease is not readily determinable.

Options – the lease term is the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs.

Rental expense for operating leases classified under ASC 840 for the three and six months ended September 30, 2018 was less than $0.1 million and was recorded within general and administrative expenses.

Beginning on August 1, 2017, the Company was given the right to occupy approximately 5,200 square feet of office space in West Hollywood, California. The space was provided to the Company by an unrelated third party and is fully furnished. The Company compensated the landlord in cash at the rate of approximately $38 thousand per month for months that the Company occupies the space. The Company or the third party had the right to terminate the arrangement at any time without prior notice, and the Company terminated this arrangement, effective April 30, 2019.

On May 1, 2019 the Company entered into a month to month agreement with a third party to lease office space in Los Angeles, California for $20 thousand per month. This agreement was subsequently amended on October 1, 2019 to $14 thousand per month.

Slacker leases its San Diego premises under operating leases expiring on December 31, 2019. Rent expense for the operating lease totaled $0.2 million and $0.2 million for the six months ended September 30, 2019 and 2018, respectively.