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COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Commitments

In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk, consisting primarily of unused commitments to extend financing to the Company’s portfolio companies. Because commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Additionally, our commitment to fund delayed draw term loans generally is triggered upon the satisfaction of certain pre-negotiated terms and conditions, such as meeting certain financial performance hurdles or financial covenants, which may limit a borrower's ability to draw on such delayed draw term loans.

The balances of unfunded debt commitments as of March 31, 2024 and March 31, 2023 were as follows (amounts in thousands):
March 31,March 31,
Portfolio Company20242023
Revolving Loans
Acacia BuyerCo V LLC$2,000 $2,000 
Acceleration, LLC5,000 1,300 
Air Conditioning Specialist, Inc.1,675 1,200 
American Teleconferencing Services, Ltd.— 154 
ArborWorks, LLC432 1,000 
ATS Operating, LLC1,640 2,000 
Bond Brand Loyalty ULC2,000 — 
BP Loenbro Holdings Inc.1,101 — 
Burning Glass Intermediate Holding Company, Inc.296 — 
Catbird NYC, LLC4,000 4,000 
Cavalier Buyer, Inc.2,000 2,000 
CDC Dental Management Co., LLC2,000 — 
Central Medical Supply LLC800 1,200 
Damotech Inc.3,000 — 
Edge Autonomy Holdings, LLC4,000 — 
Exact Borrower, LLC2,500 2,500 
FM Sylvan, Inc.— 8,000 
FS Vector LLC2,000 — 
Gains Intermediate, LLC2,500 2,500 
GPT Industries, LLC3,000 3,000 
GrammaTech, Inc.2,500 2,500 
Gulf Pacific Acquisition, LLC555 657 
HH-Inspire Acquisition, Inc.46 — 
Ignite Visibility LLC2,000 — 
Institutes of Health, LLC1,000 — 
ISI Enterprises, LLC2,000 2,000 
Island Pump and Tank, LLC1,500 1,000 
ITA Holdings Group, LLC1,058 — 
Lash OpCo, LLC— 138 
LGM Pharma LLC1,500 — 
Lighting Retrofit International, LLC1,354 2,083 
Lightning Intermediate II, LLC1,852 1,852 
LKC Technologies, Inc.2,000 — 
Mako Steel LP1,887 943 
March 31,March 31,
Portfolio Company20242023
Mammoth BorrowCo, Inc.1,950 — 
Microbe Formulas LLC1,627 1,627 
Muenster Milling Company, LLC— 7,000 
New Skinny Mixes, LLC3,500 4,000 
NinjaTrader, Inc.2,500 2,500 
NWN Parent Holdings, LLC— 480 
Opco Borrower, LLC833 833 
Outerbox, LLC2,000 2,000 
Pipeline Technique Ltd.2,278 2,833 
Revo Brands, Inc.7,000 — 
Roof OpCo, LLC3,056 3,056 
Roseland Management, LLC2,000 1,425 
RTIC Subsidiary Holdings LLC301 548 
Shearwater Research, Inc.— 2,446 
South Coast Terminals LLC1,935 1,935 
Spotlight AR, LLC2,000 2,000 
Swensons Drive-In Restaurants, LLC1,500 — 
Systec Corporation— 400 
TMT BHC Buyer, Inc.4,717 — 
Tru Fragrance & Beauty LLC3,900 — 
Versicare Management LLC2,500 2,500 
Wall Street Prep, Inc.1,000 1,000 
Well-Foam, Inc.4,500 4,500 
Winter Services Operations, LLC3,111 4,444 
Zenfolio Inc.1,000 — 
Total Revolving Loans112,404 87,554 
Delayed Draw Term Loans
AAC New Holdco Inc.— 199 
Acacia BuyerCo V LLC— 2,500 
Acceleration, LLC— 5,000 
Air Conditioning Specialist Inc.750 — 
BP Loenbro Holdings Inc.1,101 — 
Central Medical Supply LLC1,400 1,400 
CityVet, Inc.5,000 — 
Exact Borrower, LLC— 2,500 
Gains Intermediate, LLC— 5,000 
Gulf Pacific Acquisition, LLC1,212 1,212 
Ignite Visibility LLC2,000 — 
Infolinks Media Buyco, LLC— 2,250 
ITA Holdings Group, LLC854 — 
KMS, LLC— 2,286 
Mammoth BorrowCo, Inc.1,325 — 
New Skinny Mixes, LLC3,000 3,000 
March 31,March 31,
Portfolio Company20242023
NinjaTrader, Inc.— 4,692 
One Group, LLC545— 
Pool Service Holdings, LLC5,000 — 
TMT BHC Buyer, Inc.5,000 — 
Versicare Management LLC— 2,600 
Winter Services Operations, LLC— 4,444 
Total Delayed Draw Term Loans27,187 37,083 
Total Unfunded Debt Commitments$139,591 $124,637 

The following table provides additional information regarding the expiration year of the Company’s unfunded debt commitments (amounts in thousands):
March 31, 2024March 31, 2023
Unfunded Debt Commitments
Expiring during:
2024$— $31,625 
202526,462 10,637 
20268,242 6,712 
202731,417 38,062 
202831,021 35,318 
202942,449 2,283 
Total Unfunded Debt Commitments$139,591 $124,637 

The balances of unfunded equity commitments as of March 31, 2024 and March 31, 2023 were as follows (amounts in thousands):

March 31, 2024March 31, 2023
Unfunded Equity Commitments
Catbird NYC, LLC$125 $125 
Infolinks Media Buyco, LLC412 412 
Total Unfunded Equity Commitments$537 $537 

As of March 31, 2024, total revolving and delayed draw loan commitments included commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. As of March 31, 2024, the Company had $0.9 million in letters of credit issued and outstanding under these commitments on behalf of portfolio companies. For all of these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. Of these letters of credit, $0.4 million expire in February 2025, $0.3 million expire in March 2025, and $0.2 million expire in April 2025. As of March 31, 2024, none of the letters of credit issued and outstanding were recorded as a liability on the Company's balance sheet as such letters of credit are considered in the valuation of the investments in the portfolio company.

Effective April 1, 2019, ASC 842 required that a lessee evaluate its leases to determine whether they should be classified as operating or financing leases. The Company previously had an operating lease for its office space that commenced October 1, 2014 and expired February 28, 2022. In March 2021, the Company executed an agreement to lease new office space that commenced on February 1, 2022 and expires September 30, 2032. The Company identified the foregoing as an operating lease.

ASC 842 indicates that an ROU asset and lease liability should be recorded based on the effective date. As such, CSWC recorded an ROU asset, which is included in other assets on the Consolidated Statements of Assets and Liabilities, and a lease liability, which is included in other liabilities on the Consolidated Statements of Assets and Liabilities, as of February 1, 2022. The Company has recorded lease expense on a straight-line basis.
In December 2023, the Company executed an agreement to lease additional office space, which is expected to commence during the third quarter of fiscal year 2025. The additional office space will be approximately 7,100 square feet. This is an amendment of the Company's current lease, which is classified as an operating lease. The term with respect to the additional office space will be 10 years and the term of the current office space will be extended for an additional 3 years.

Total lease expense incurred for each of the years ended March 31, 2024, 2023 and 2022 was $0.3 million. As of March 31, 2024 and March 31, 2023, the asset related to the operating lease was $2.4 million and $1.8 million respectively, and the lease liability was $3.2 million and $2.8 million, respectively. As of March 31, 2024, the remaining lease term was 11.5 years and the discount rate was 7.60%.

The following table shows future minimum payments under the Company's operating leases as of March 31, 2024 (in thousands):

Year ending March 31, Rent Commitment
2025416 
2026426 
2027436 
2028446 
2029457 
Thereafter3,611 
Total$5,792 



Contingencies

We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. To our knowledge, we have no currently pending material legal proceedings to which we are party or to which any of our assets are subject.