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Leases

6 Months Ended

Sep. 30, 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.

Short term leases

Slacker leases its San Diego premises under operating leases expiring on December 31, 2020. Rent expense for the operating lease totaled $0.1 million and $0.1 million for the three and six month periods ended September 30, 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 three and six month periods ended September 30, 2020.

PodcastOne leases its Los Angeles premises under an operating lease expiring on December 31, 2020. Rent expense for the operating lease totaled $0.1 million for the three and six month periods ended September 30, 2020.

Remaining lease commitments at September 30, 2020 is $0.2 million.

Operating lease costs for the six months ended September 30, 2020 consisted of the following (in thousands):

	September 30, 2020
Fixed rent cost		46
Short term lease cost		282
Total operating lease cost	$	328

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

Operating leases	September 30, 2020
Operating lease right-of-use assets	$	87
Total operating lease right-of-use assets		87

Operating lease liability, current	$	87
Operating lease liability, noncurrent		-
Total operating lease liabilities	$	87

Future maturities of operating lease liabilities as of September 30, 2020 were as follows (in thousands):

For Years Ending March 31,
2021 (remaining six months)	$	47
2022		47
Total lease payments		94
Less: imputed interest		(7	)
Present value of operating lease liabilities	$	87

Significant judgments

Discount rate – the Company's lease is discounted using the Company's incremental borrowing rate of 8.5% 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

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 has the right to terminate the arrangement at any time without prior notice. Rent expense for the month to month arrangements totaled less than $0.1 million for the three and six month periods ended September 30, 2020 and $0.1 million for the three and six month periods ended September 30, 2019.