Leases

3 Months Ended

Jun. 30, 2022

Leases

Leases

8. Leases

Time charter-in contracts

During the three months ended June 30, 2022, we did not take delivery of any time chartered-in VLGCs. As of June 30, 2022, right-of-use assets and lease liabilities of $5.6 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. Additionally, we previously time-chartered-in a VLGC that was delivered to us in October 2021 with a duration of 12 months with no option periods that was excluded from operating lease right-of-use asset and lease liability recognition on our consolidated balance sheet. Our time chartered-in VLGCs were deployed in the Helios Pool and earned net pool revenues of $6.8 million and $4.1 million for the three months ended June 30, 2022 and 2021, respectively.

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

	Three months ended
	June 30, 2022		June 30, 2021
Charter hire expenses	$	5,402,145	$	3,508,070

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, 2022, we extended the lease of our Stamford, Connecticut office for an additional five years. We also entered a new lease for our Copenhagen, Denmark office. The contract was signed during the three months ended June 30, 2022, with the lease commencing in August 2022.

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

	Three months ended
	June 30, 2022		June 30, 2021
Operating lease rent expense	$	154,464	$	151,676

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 4.60%. The weighted average remaining lease term of our office leases and time chartered-in vessel as of June 30, 2022 is 13.0 months.

Our operating lease right-of-use asset and lease liabilities as of June 30, 2022 were as follows:

Description	Location on Balance Sheet	June 30, 2022
Assets:
Non-current
Office leases	Operating lease right-of-use assets	$	859,045
Time charter-in VLGCs	Operating lease right-of-use assets	$	5,551,015
Liabilities:
Current
Office Leases	Current portion of long-term operating leases	$	234,512
Time charter-in VLGCs	Current portion of long-term operating leases	$	5,551,015
Long-term
Office Leases	Long-term operating leases	$	622,769
Time charter-in VLGCs	Long-term operating leases	$	—

Maturities of operating lease liabilities as of June 30, 2022 were as follows:

Less than one year	$	5,893,242
One to three years		349,950
Three to five years		339,030
Total undiscounted lease payments		6,582,222
Less: imputed interest		(173,926)
Carrying value of operating lease liabilities	$	6,408,296