Leases

6 Months Ended

Sep. 30, 2020

Leases

Leases

7. Leases

Time charter-in contracts

During the six months ended September 30, 2020, we time chartered-in a VLGC with a duration of 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 September 30, 2020, right-of-use assets and lease liabilities of $21.5 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 $4.6 million and $5.4 million for the three months ended September 30, 2020 and 2019, respectively and $11.5 million and $6.7 million for the six months ended September 30, 2020 and 2019, respectively.

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

	Three months ended				Six months ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Charter hire expenses	$	4,518,850	$	2,055,000	$	9,234,448	$	4,110,000

Office leases

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 six months ended September 30, 2020, we did not enter into any new office lease contracts.

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

	Three months ended				Six months ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating lease rent expense	$	143,608	$	127,664	$	261,867	$	250,016

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 of our office leases and time chartered-in vessels as of September 30, 2020 is 27.9 months.

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

Description	Location on Balance Sheet	September 30, 2020
Assets:
Non-current
Office leases	Operating lease right-of-use assets	$	834,413
Time charter-in VLGCs	Operating lease right-of-use assets	$	21,495,684
Liabilities:
Current
Office Leases	Current portion of long-term operating leases	$	425,345
Time charter-in VLGCs	Current portion of long-term operating leases	$	8,982,704
Long-term
Office Leases	Long-term operating leases	$	411,929
Time charter-in VLGCs	Long-term operating leases	$	12,512,980

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

Remainder of FY 2021	$	5,047,989
FY 2022		10,104,389
FY 2023		8,222,917
Total undiscounted lease payments		23,375,295
Less: imputed interest		(1,042,337)
Carrying value of lease liabilities	$	22,332,958