Leases

3 Months Ended

Jun. 30, 2021

Leases

Leases

9. Leases

Time charter-in contracts

During the three months ended June 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. During the three months ended June 30, 2021, no additional vessels were time chartered-in. As of June 30, 2021, right-of-use assets and lease liabilities of $14.8 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 $4.1 million and $6.9 million for the three months ended June 30, 2021 and 2020, respectively.

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

	Three months ended
	June 30, 2021		June 30, 2020
Charter hire expenses	$	3,508,070	$	4,715,598

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 three months ended June 30, 2021, 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
	June 30, 2021		June 30, 2020
Operating lease rent expense	$	151,676	$	118,259

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 vessel as of June 30, 2021 is 18.9 months.

Our operating lease right-of-use asset and lease liabilities as of June 30, 2021 were as follows:

Description	Location on Balance Sheet	June 30, 2021
Assets:
Non-current
Office leases	Operating lease right-of-use assets	$	528,672
Time charter-in VLGCs	Operating lease right-of-use assets	$	14,789,225
Liabilities:
Current
Office Leases	Current portion of long-term operating leases	$	408,353
Time charter-in VLGCs	Current portion of long-term operating leases	$	9,238,210
Long-term
Office Leases	Long-term operating leases	$	117,284
Time charter-in VLGCs	Long-term operating leases	$	5,551,015

Maturities of operating lease liabilities as of June 30, 2021 were as follows:

FY 2022	$	10,071,773
FY 2023		5,740,411
Total undiscounted lease payments		15,812,184
Less: imputed interest		(497,322)
Carrying value of operating lease liabilities	$	15,314,862