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Leases

12 Months Ended

Mar. 31, 2021

Lease Of Lessee Disclosure [Abstract]

Note 13 — Leases

The Company leases a space at a location under a non-cancellable operating lease with a remaining lease term of 1 year, expiring in fiscal year 2022. On December 22, 2020, the Company acquired CPS which included the assumption of an operating lease for a 55,120 square foot light manufacturing facility located in Addison Illinois, expiring June 30, 2024.

The Company leases several office locations with lease terms that are less than 12 months or are on month to month terms. Rent expense for these leases totaled $0.3 million for the year ended March 31, 2021. Operating leases with lease terms of greater than 12 months are capitalized in Operating lease right-of-use assets and Operating lease liabilities in the consolidated balance sheet. Rent expense for these operating leases totaled $0.5 million the years ended March 31.

Operating lease costs for the year ended March 31, 2021 consisted of the following (in thousands):

	Year Ended March 31,
	2021		2020
Fixed rent cost	$	507		94
Short term lease cost		281		352
Total operating lease cost	$	788		446

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

Operating leases	March 31, 2021		March 31, 2020
Operating lease right-of-use assets	$	1,057		127

Operating lease liability, current	$	319		82
Operating lease liability, noncurrent		742		45
Total operating lease liabilities	$	1,061		127

The operating lease right-of-use assets are included in other assets in the March 31, 2021 consolidated balance sheets, and operating lease liabilities are included in accounts payable and accrued liabilities and lease liabilities non-current in the March 31, 2021 consolidated balance sheets.

Future maturities of operating lease liabilities as of March 31, 2021 were as follows (in thousands):

For Years Ending March 31,
2022		396
2023		358
2024		320
2025		93

Total lease payments		1,167
Less: imputed interest		(106	)
Present value of operating lease liabilities	$	1,061

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

The Company leased corporate headquarters office space in West Hollywood from a third party. The Company or the third party had 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 and $0.5 million for the years ended March 31, 2021 and 2020, respectively. The Company vacated this office space as of December 31, 2020.

React Presents leases its Chicago, Illinois premises under a month-to-month lease. Rent expense for the operating leases totaled less than $0.1 million for the year ended March 31, 2021 and the period from the acquisition date to March 31, 2020, respectively.

PodcastOne leases its Los Angeles premises under a month-to-month operating lease. Rent expense for the operating leases totaled $0.3 million for the period from the acquisition date to March 31, 2021.