Leases

9 Months Ended

Dec. 31, 2021

Leases

Leases

9. Leases

Time charter-in contracts

During the nine months ended December 31, 2021, we time chartered-in a VLGC that was delivered to us in October 2021 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 December 31, 2021, right-of-use assets and lease liabilities of $10.2 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 $5.5 million and $8.7 million for the three months ended December 31, 2021 and 2020, respectively, and $12.3 million and $20.2 million for the nine months ended December 31, 2021 and 2020, respectively.

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

	Three months ended				Nine months ended
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Charter hire expenses	$	4,917,012	$	4,392,132	$	10,829,050	$	13,626,580

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 nine months ended December 31, 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				Nine months ended
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Operating lease rent expense	$	148,384	$	139,568	$	464,394	$	401,435

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 December 31, 2021 is 12.9 months.

Our operating lease right-of-use asset and lease liabilities as of December 31, 2021 were as follows:

Description	Location on Balance Sheet	December 31, 2021
Assets:
Office leases	Operating lease right-of-use assets	$	303,810
Time charter-in VLGCs	Operating lease right-of-use assets	$	10,213,986
Liabilities:
Current
Office Leases	Current portion of long-term operating leases	$	291,241
Time charter-in VLGCs	Current portion of long-term operating leases	$	9,413,540
Long-term
Office Leases	Long-term operating leases	$	2,347
Time charter-in VLGCs	Long-term operating leases	$	800,446

Maturities of operating lease liabilities as of December 31, 2021 were as follows:

Less than one year	$	9,923,917
One to three years		819,233
Total undiscounted lease payments		10,743,150
Less: imputed interest		(235,576)
Carrying value of operating lease liabilities	$	10,507,574