Leases

12 Months Ended

Mar. 31, 2021

Leases

Leases

10. Leases

Time charter-in contracts

During the year ended March 31, 2021, we time chartered-in a vessel that was delivered to us in May 2020 with a duration of 12 months with no option periods and, therefore, this operating lease was excluded from operating lease right-of-use asset and lease liability recognition on our consolidated balance sheets. During the year ended March 31, 2020, we time chartered-in a VLGC for a period of greater than 12 months and the applicable right-of-use asset and lease liabilities of $27.4 million were recognized on our balance sheets as of March 31, 2020. None of the three option periods of up to an aggregate of four years were included in the recognition of the right-of-use asset for the time chartered-in VLGC as market conditions at the time of each option renewal election date for a time charter-in will be major factors in the decision of whether to exercise the option and such conditions are not known at the time of initial recognition. Our time chartered-in VLGCs were deployed in the Helios Pool and earned net pool revenues of $29.1 million, $18.3 million, and $0.1 million for the years ended March 31, 2021, 2020 and 2019, respectively.

Charter hire expenses for the VLGCs time chartered in were as follows:

	Year ended
	March 31, 2021		March 31, 2020		March 31, 2019
Charter hire expenses	$	18,135,580	$	9,861,898	$	237,525

Office leases

We currently have operating leases for our offices in Stamford, Connecticut, USA; London, United Kingdom; Copenhagen, Denmark; and Athens, Greece. During the year ended March 31, 2021, we did not enter into and new office leases and did not renew any office leases. During the year ended March 31, 2020, we renewed an operating lease for our London office greater than 12 months and the applicable right-of-use asset and lease liabilities of $0.2 million were recognized on our balance sheets as of March 31, 2020. At adoption of ASC 842, two option periods for our Athens office were included in the recognition of the right-of-use asset as it is probable that the renewal options of 1-year each will be exercised. We accounted for our Copenhagen office lease using the practical expedient for contracts with initial lease terms of 12 month or less as described above and, during the years ended March 31, 2021 and 2020, expensed $0.1 million related to this lease within “general and administrative expenses” on our consolidated statement of operations.

Operating lease rent expense related to our office leases was as follows:

	Year ended
	March 31, 2021		March 31, 2020		March 31, 2019
Operating lease rent expense	$	558,400	$	541,574	$	471,425

For our office leases and time charter-in arrangement, the discount rate used ranged from 3.82% to 5.53%. The weighted average discount rate used to calculate the lease liability was 3.88%. The weighted average remaining lease term on our office leases and a time chartered-in vessel as of March 31, 2021 is 21.9 months.

Our operating lease right-of-use asset and lease liabilities as of March 31, 2021 were as follows:

Description	Location on Balance Sheet	March 31, 2021
Assets:
Non-current
Office leases	Operating lease right-of-use assets	$	628,253
Time charter-in VLGCs	Operating lease right-of-use assets	$	17,043,974
Liabilities:
Current
Office Leases	Current portion of long-term operating leases	$	440,143
Time charter-in VLGCs	Current portion of long-term operating leases	$	9,151,304
Long-term
Office Leases	Long-term operating leases	$	188,324
Time charter-in VLGCs	Long-term operating leases	$	7,892,671

Maturities of operating lease liabilities as of March 31, 2021 were as follows:

FY 2022	$	10,110,547
FY 2023		8,223,237
Total undiscounted lease payments		18,333,784
Less: imputed interest		(661,342)
Carrying value of lease liabilities	$	17,672,442