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Leases

12 Months Ended

Mar. 31, 2020

Note 12 — Leases

The Company leases a space at a location under a non-cancellable operating lease with a remaining lease term of 1.5 years, expiring in fiscal year 2022. Upon adoption of ASU 2016-02 and its related Updates (ASC 842, Leases), the Company recorded $0.2 million of right-of-use assets in other assets in the consolidated balance sheet and operating lease liabilities in accounts payable and accrued liabilities and lease liabilities, noncurrent in the consolidated balance sheet.

Operating lease costs for the year ended March 31, 2020 consisted of the following (in thousands):

	March 31, 2020
Fixed rent cost	$	94
Short term lease cost		352
Total operating lease cost	$	446

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

Operating leases	March 31, 2020
Operating lease right-of-use assets	$	127
Total operating lease right-of-use assets		127

Operating lease liability, current	$	82
Operating lease liability, noncurrent		45
Total operating lease liabilities	$	127

Maturities of operating lease liabilities as of March 31, 2020 were as follows (in thousands):

For Years Ending March 31,
2021	$	94
2022		47
Total lease payments		141
Less: imputed interest		(14	)
Present value of operating lease liabilities	$	127

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.

Lease and non-lease components – Non lease components were considered and determined not to be material

Short term leases

Slacker leases its San Diego premises under operating leases expiring on December 31, 2020. Rent expense for the operating lease totaled $0.3 million and $0.4 million for the years ended March 31, 2020 and 2019, respectively.

React Presents leases its Chicago, Illinois premises under an operating lease expiring October 9, 2020. Rent expense for the operating leases totaled less than $0.1 million for the period from acquisition on February 5, 2020 through March 31, 2020.

Remaining lease commitments at March 31, 2020 is $0.3 million.

Month to month arrangements

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 certain 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 with a termination date of December 31, 2019. Effective January 1, 2020, 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 compensates the landlord in cash at the rate of approximately $40 thousand per month for months that the Company occupies the space, provided, that the Company and the temporary trustee of landlord's assets agreed that such payments shall be $22.4 thousand per month for the months of December 2019 and January 2020. The Company or the third party have the right to terminate the arrangement at any time without prior notice. Rent expense for the month to month arrangements totaled $0.6 million for the year ended March 31, 2020 and $0.5 million for the year ended March 31, 2019, respectively.

Total rent expense for operating leases classified under ASC 840 for the fiscal year ended March 31, 2019 was $1.0 million. Future minimum lease payments under noncancelable operating leases as of March 31, 2019, with initial or remaining terms of one or more years are as follows (in thousands):

		Year ended March 31, 2020
Operating leases		$	244