The Company leases its corporate headquarters and branch office facilities. The Company’s headquarter is located in Clearwater, Florida. The current lease relating to this space was entered into effective February 1, 2023 and expires on January 31, 2026. The Company’s central business operations hub is located in Rock Hill, South Carolina. The current lease relating to this space was entered into effective March 20, 2023 and expires on March 19, 2026. 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.

As of March 31, 2023, the Company has closed each of its 47 branch offices located in Alabama, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Michigan, Missouri, Nevada, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Wisconsin.

The Company’s lease liability was $0.2 million as of March 31, 2023 and $4.4 million as of March 31, 2022. 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. The right of use asset was $0.2 million as of March 31, 2023 and $4.3 million as of March 31, 2022.

The Company combines lease and non-lease components for its real estate leases in calculating the present value of the fixed payments. Future minimum lease payments under non-cancellable operating leases in effect as of March 31, 2023, are as follows:


in thousands
2024	$	65
2025		67
2026		61
Thereafter		—
Total future minimum lease payments		193
Present value adjustment		(17	)
Operating lease liability	$	176

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


	(In thousands)
	2023		2022
Lease cost:
Operating lease cost	$	1,425	$	1,736
Variable lease cost	297		347
Total lease cost	$	1,722	$	2,083

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


	(In thousands)
	2023		2022
Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	1,663	$	1,591
Operating Lease - Operating Cash Flows (Liability Reduction)	$	1,763	$	1,388

The following table reports other information about the Company’s leases as of March 31:


	2023			2022
Weighted Average Lease Term - Operating Leases	3.0 years			3.9 years
Weighted Average Discount Rate - Operating Leases		6.50	%		6.50	%

Rent expense for the fiscal years ended March 31, 2023 and 2022 was approximately $1.8 million and $2.1 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.