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Leases
 9 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

Note 12 — 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. Rent expense for this operating lease totaled $0.1 million for the three and nine month periods ended December 31, 2020.

 

Remaining lease commitments at December 31, 2020 is $1.4 million.

 

Short term leases

 

Slacker leases its San Diego premises under operating lease which expired on December 31, 2020 and was renewed through December 31, 2021. Rent expense for this operating lease totaled $0.1 million and $0.1 million for the three month periods ending December 31, 2020 and 2019, respectively, and $0.3 million and $0.3 million for the nine month periods ended December 31, 2020 and 2019, respectively.

 

Operating lease costs for the nine months ended December 31, 2020 consisted of the following (in thousands):

 

   December 31,
2020		 
Fixed rent cost  $123 
Short term lease cost   341 
Total operating lease cost  $464 

  

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

 

Operating leases   December 31,
2020		 
Operating lease right-of-use assets  $1,154 
Total operating lease right-of-use assets   1,154 
      
Operating lease liability, current  $341 
Operating lease liability, noncurrent   813 
Total operating lease liabilities  $1,154 

 

The operating lease right-of-use assets are included in other assets in the December 31, 2020 condensed consolidated balance sheets, and operating lease liabilities are included in accounts payable and accrued liabilities and lease liabilities non-current in the December 31, 2020 condensed consolidated balance sheets.

 

Future maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands):

 

For Years Ending March 31,    
2021 (remaining three months)  $127 
2022   582 
2023   358 
2024   320 
2025   93 
Total lease payments   1,480 
Less: imputed interest   (326)
Present value of operating lease liabilities  $1,154 

 

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 compensated the landlord in cash at the rate of approximately $40 thousand per month for months that the Company occupied 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 nine month periods ended December 31, 2020 and $0.1 million and $0.2 million for the three and nine month periods ended December 31, 2019, respectively. The Company vacated this office space as of December 31, 2020.

 

React Presents leases its Chicago, Illinois premises under a month-to-month operating lease expiring October 9, 2020. Rent expense for the operating leases totaled less than $0.1 million and 0.1 million for the three and nine month periods ended December 31, 2020, respectively.

 

PodcastOne leases its Los Angeles premises under a month-to-month operating lease. Rent expense for the operating lease totaled $0.1 million and $0.2 million for the three and nine month periods ended December 31, 2020, respectively.