COMMITMENTS AND CONTINGENCIES

LEASES

Our capital lease obligations primarily related to computer equipment. On October 28, 2016, we entered into an agreement to fully terminate our lease obligation on the Pavilion Theater, a facility that was accounted for as a capital lease and for which we were considered the primary obligor. Contemporaneously, we also terminated a sublease agreement that we had with the tenant of the Pavilion Theater. As a result of the lease termination, we wrote off the property and equipment and capital lease obligation related to the facility and recognized a gain on the transaction of $2.5 million for the year ended March 31, 2017.

We also operate from leased properties under non-cancelable operating lease agreements, certain of which contain escalating lease clauses. As of March 31, 2018, obligations under non-cancelable operating leases are due as follows (dollars in thousands):



Fiscal years ending March 31,
2019	$	990
2020	1,069
2021	1,110
2022	693
	$	3,862

Rent expense, included in selling, general and administrative expenses in our consolidated statements of operations, was $1.1 million and $1.7 million for the years ended March 31, 2018 and 2017, respectively.

During the year ended March 31, 2017, the Company terminated an operating lease on its corporate office space in Century City, California and relocated its offices to Sherman Oaks, California. The Company recorded an obligation in connection with the termination of the operating lease, which is reported as other long-term liabilities on the consolidated balance sheets. The obligation terminates in March 2022.

On April 10, 2017, we entered into lease agreements for new office space in New York City, which timing coincided with the termination of our previous New York City office lease. The new agreements commenced on July 1, 2017 and initially required minimum lease payments of $33 thousand with customary escalation clauses over the course of the contract which terminates in April 2021.

LEGAL PROCEEDINGS

We are subject to certain legal proceedings in the ordinary course of business. We do not expect any such items to have a significant impact on our financial position and results of operations and liquidity.