The Company maintains lease agreements related to its branch network and for its corporate headquarters. The branch lease agreements range from one to five years and generally contain options to extend from one to three years. The corporate headquarters lease agreement expires in April 2023 and the Company is in the process of negotiating a new lease agreement. All of the Company’s lease agreements are considered operating leases. None of the Company’s lease payments are dependent on a rate or index that may change after the commencement date, other than the passage of time.

The Company’s lease liability was $4.4 million as of March 31, 2022 and $3.4 million as of March 31, 2021. The liability is based on the present value of the remaining minimum rental payments using a discount rate that is determined based on the Company’s incremental borrowing rate on its senior revolving credit facility. The right of use asset was $4.3 million as of March 31, 2022 and $3.4 million as of March 31, 2021.

The Company has made several policy elections related to lease assets and liabilities. The Company elected to utilize the package of transition practical expedients, which includes not reassessing the following at adoption: (i) whether existing contracts contained leases, (ii) the existing classification of leases as operating or financing, or (iii) the initial direct costs of leases. In addition, the Company did not use hindsight to determine the lease term or include options to extend for leases existing at the transition date.

The Company had elected the practical expedient of combining lease and non-lease components for its real estate leases in calculating the present value of the fixed payments without having to perform an allocation between the types of lease components. Future minimum lease payments under non-cancellable operating leases in effect as of March 31, 2022, are as follows:


in thousands
2023	$	1,624
2024		1,130
2025		917
2026		553
2027		293
Thereafter		481
Total future minimum lease payments		4,998
Present value adjustment		(588	)
Operating lease liability	$	4,410

The following table reports information about the Company’s lease cost for the twelve months ended March 31:


	(In thousands)
	2022	2021
Lease cost:
Operating lease cost	$ 1,736	$ 1,530
Variable lease cost	347	344
Total lease cost	$ 2,083	$ 1,874

The following table reports other information about the Company’s leases for the twelve months ended March 31:


	(In thousands)
	2022			2021
Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$ 1,591			$ 1,593
Operating Lease - Operating Cash Flows (Liability Reduction)	$ 1,388			$ 1,193
Weighted Average Lease Term - Operating Leases	3.9 years			2.8 years
Weighted Average Discount Rate - Operating Leases		6.50	%		6.50	%

Rent expense for the fiscal years ended March 31, 2022 and 2021 was approximately $2.1 million and $1.9 million, respectively. For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. The Company uses its effective annual interest rate as the discount rate when evaluating leases under Topic 842.

Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. Further, the Company has elected to not separate lease from non-lease components. Variable lease costs include expenses such as common area maintenance, utilities, and repairs and maintenance.