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Leases
6 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases 7.     Leases A lease is defined as a contract that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On April 1, 2019, the Company adopted ASC 842 and it primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of corporate office space and tower space. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2024 through June 30, 2027, which includes a 10-year lease extension for its corporate headquarters. The Company entered into multiple lease agreements for tower space. The lease expiration dates range from October 31, 2021 to November 30, 2027. Substantially all of the Company’s leases are classified as operating leases, and as such, were previously not recognized on the Company’s Consolidated Balance Sheet. With the adoption of Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheet as Right of Use (“ROU”) assets and corresponding lease liabilities. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: Six months ended September 30, 2021 2020Weighted average term - operating lease liabilities 4.04 years 4.69 yearsWeighted average incremental borrowing rate - operating lease liabilities 13% 13% Rent expense amounted to approximately $0.5 million and $1.0 million, respectively, for the three and six months ended September 30, 2021 and are included in general and administrative expenses in the Consolidated Statements of Operations. Rent expense amounted to approximately $0.6 million for the three months ended September 30, 2020, of which approximately $0.4 million was included as direct cost of revenue and the remainder of approximately $0.2 million was included in general and administrative expenses in the Consolidated Statements of Operations. Rent expense amounted to approximately $1.3 million for the six months ended September 30, 2020, of which approximately $0.8 million was included as direct cost of revenue and the remainder of approximately $0.5 million was included in general and administrative expenses in the Consolidated Statements of Operations. In June 2020, the Company terminated an operating tower space lease early resulting in a non-cash reductions in ROU assets by $19,000, operating lease liabilities by $20,000 and gain in disposal of long-lived asset by $1,000. The following table presents net lease cost for the three and six months ended September 30, 2021 and 2020 (in thousands): Three months ended September 30, Six months ended September 30, 2021 2020 2021 2020Lease cost Operating lease cost (cost resulting from lease payments) $ 495 $ 612 $ 1,008 $ 1,271Short term lease cost 6 40 10 43Sublease income - (3) - (6)Net lease cost $ 501 $ 649 $ 1,018 $ 1,308 The following table presents supplemental cash flow and non-cash activity information for the three and six months ended September 30, 2021 and 2020 (in thousands): Six months ended September 30, 2021 2020Operating cash flow information: Operating lease - operating cash flows (fixed payments) $ 1,155 $ 1,411Operating lease - operating cash flows (liability reduction) $ 735 $ 961Non-cash activity: Right of use assets obtained in exchange for new operating lease liabilities $ 66 $ 18 The following table presents supplemental balance sheet information as of September 30, 2021 and March 31, 2021 (in thousands): September 30, 2021 March 31, 2021Non-current assets - right of use assets, net $ 4,522 $ 5,100Current liabilities - operating lease liabilities $ 1,432 $ 1,470Non-current liabilities - operating lease liabilities $ 4,903 $ 5,601 Future minimum payments under non-cancelable leases for office and tower spaces (exclusive of real estate tax, utilities, maintenance and other costs borne by the Company), for the remaining terms of the leases following the six months ended September 30, 2021 are as follows (in thousands): Operating Fiscal Year Leases2022 (excluding the six months ended September 30, 2021) $ 1,1002023 2,0992024 1,9532025 1,5532026 866After 2026 596Total future minimum lease payments 8,167Amount representing interest (1,832)Present value of net future minimum lease payments $ 6,335