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Leases
3 Months Ended
Jun. 30, 2020
Leases  
Leases

7. Leases

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Time charter-in contracts

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During the three months ended June 30, 2020, we time chartered-in a VLGC with a duration 12 months with no option periods. Therefore, this operating lease was excluded from operating lease right-of-use asset and lease liability recognition on our consolidated balance sheets. As of June 30, 2020, right-of-use assets and lease liabilities of $23.7 million were recognized on our balance sheets related to one VLGC that we had previously time chartered-in for a period of greater than 12 months. Our time chartered-in VLGCs were deployed in the Helios Pool and earned net pool revenues of $6.9 million and $1.3 million for the three months ended June 30, 2020 and 2019, respectively.

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

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Three months ended

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June 30, 2020

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June 30, 2019

Charter hire expenses

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$

4,715,598

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$

2,055,000

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Office leases

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We currently have operating leases for our offices in Stamford, Connecticut, USA; London, United Kingdom; 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. During the three months ended June 30, 2020, we did not enter into any new office lease contracts.

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

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Three months ended

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June 30, 2020

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June 30, 2019

Operating lease rent expense

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$

118,259

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$

122,352

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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 time chartered-in vessels as of June 30, 2020 is 30.9 months.

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Our operating lease right-of-use asset and lease liabilities as of June 30, 2020 were as follows:

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Description

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Location on Balance Sheet

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June 30, 2020

Assets:

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Non-current

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Office leases

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Operating lease right-of-use assets

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$

915,257

Time charter-in VLGCs

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Operating lease right-of-use assets

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$

23,687,426

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Liabilities:

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Current

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Office Leases

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Current portion of long-term operating leases

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$

409,507

Time charter-in VLGCs

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Current portion of long-term operating leases

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$

8,898,201

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Long-term

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Office Leases

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Long-term operating leases

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$

508,524

Time charter-in VLGCs

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Long-term operating leases

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$

14,789,225

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Maturities of operating lease liabilities as of June 30, 2020 were as follows:

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Remainder of FY 2021

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$

7,561,882

FY 2022

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10,091,911

FY 2023

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8,215,431

Total undiscounted lease payments

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25,869,224

Less: imputed interest

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(1,263,767)

Carrying value of lease liabilities

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$

24,605,457

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