Leases

6 Months Ended

Sep. 30, 2023

Leases:

Leases

7. Leases

Time charter-in contracts

During the six months ended September 30, 2023, we took delivery of the 2023-built dual-fuel Panamax VLGC Cristobal on time charter for seven years with two consecutive one-year charterer’s option periods, for up to an aggregate of nine years, and purchase options in the Company’s favor in years seven through nine. We initially recognized the applicable right-of-use asset and lease liability of this time chartered-in VLGC of $62.6 million on our balance sheet. As of September 30, 2023, right-of-use assets and lease liabilities related to all of our time charter-in VLGCs totaled $205.8 million and were recognized on our balance sheet. Our time chartered-in VLGCs were deployed in the Helios Pool and earned net pool revenues of $27.8 million and $6.8 million for the three months ended September 30, 2023 and 2022, respectively, and $46.2 million and $13.6 million for the six months ended September 30, 2023 and 2022, respectively.

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

	Three months ended				Six months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Charter hire expenses	$	12,068,419	$	5,358,333	$	22,615,229	$	10,760,478

Office leases

We currently have operating leases for our offices in Stamford, Connecticut, USA; 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 unaudited interim condensed consolidated statements of operations.

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

	Three months ended				Six months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease rent expense	$	125,554	$	162,718	$	278,576	$	317,182

For our office leases and time charter-in arrangement, the discount rate used ranged from 4.92% to 6.34%. The weighted average discount rate used to calculate the lease liability was 5.83%. The weighted average remaining lease term of our office leases and time chartered-in vessel as of September 30, 2023 is 72.9 months.

Our operating lease right-of-use asset and lease liabilities as of September 30, 2023 and March 31, 2023 were as follows:

Description	Location on Balance Sheet	September 30, 2023		March 31, 2023
Assets:
Non-current
Office leases	Operating lease right-of-use assets	$	1,410,623	$	1,654,498
Time charter-in VLGCs	Operating lease right-of-use assets	$	205,824,100	$	156,524,900
Liabilities:
Current
Office Leases	Current portion of long-term operating leases	$	444,385	$	436,810
Time charter-in VLGCs	Current portion of long-term operating leases	$	31,027,175	$	22,970,745
Long-term
Office Leases	Long-term operating leases	$	980,760	$	1,228,328
Time charter-in VLGCs	Long-term operating leases	$	174,796,925	$	133,554,155

Maturities of operating lease liabilities as of September 30, 2023 were as follows:

Less than one year	$	42,514,634
One to three years		85,886,502
Three to five years		67,837,180
More than five years		49,184,389
Total undiscounted lease payments		245,422,705
Less: imputed interest		(38,173,460)
Carrying value of operating lease liabilities	$	207,249,245