Leases

9 Months Ended

Dec. 31, 2022

Leases

Leases

8. Leases

Time charter-in contracts

During the nine months ended December 31, 2022, we did not take delivery of any time chartered-in VLGCs. During this period, one existing charter was extended by 11 months that was excluded from operating lease right-of-use asset and lease liability recognition on our consolidated balance sheet. Also, during this period, one existing charter was extended for two years, with two consecutive one-year charterer’s option periods for up to an aggregate of four years, and initially recognized the applicable right-of-use asset and lease liability of $37.7 million on our balance sheet. As of December 31, 2022, the applicable right-of-use asset and lease liability was equal to $37.1 million. As of December 31, 2022, our time chartered-in VLGCs were deployed in the Helios Pool and earned net pool revenues of $9.2 million and $5.5 million for the three months ended December 31, 2022 and 2021, respectively, and $22.7 million and $12.3 million for the nine months ended December 31, 2022, and 2021, respectively.

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

	Three months ended				Nine months ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Charter hire expenses	$	5,215,144	$	4,917,012	$	15,975,622	$	10,829,050

Office leases

We currently have operating leases for our offices in Stamford, Connecticut, USA; Copenhagen, Denmark; and Athens, Greece, which we determined to be operating leases and record the lease expense as part of general and administrative expenses in our consolidated statements of operations. The lease for our office in London, United Kingdom expired in August 2022. During the nine months ended December 31, 2022, we extended the leases of our Stamford, Connecticut office and our Athens, Greece office for an additional five and four years, respectively, and entered into a 31-month lease for new premises for our Copenhagen, Denmark office.

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

	Three months ended				Nine months ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Operating lease rent expense	$	135,825	$	148,384	$	453,007	$	464,394

For our office leases and time charter-in arrangement, the discount rate used ranged from 4.92% to 6.34%. The weighted average discount rate used to calculate the lease liability was 6.32%. The weighted average remaining lease term of our office leases and time chartered-in vessel as of December 31, 2022 is 48.9 months.

Our operating lease right-of-use asset and lease liabilities as of December 31, 2022 were as follows:

Description	Location on Balance Sheet	December 31, 2022
Assets:
Non-current
Office leases	Operating lease right-of-use assets	$	1,766,167
Time charter-in VLGCs	Operating lease right-of-use assets	$	37,111,301
Liabilities:
Current
Office Leases	Current portion of long-term operating leases	$	419,074
Time charter-in VLGCs	Current portion of long-term operating leases	$	7,976,946
Long-term
Office Leases	Long-term operating leases	$	1,354,266
Time charter-in VLGCs	Long-term operating leases	$	29,134,356

Maturities of operating lease liabilities as of December 31, 2022 were as follows:

Less than one year	$	10,577,878
One to three years		21,700,042
Three to five years		11,856,118
Total undiscounted lease payments		44,134,038
Less: imputed interest		(5,249,396)
Carrying value of operating lease liabilities	$	38,884,642