The Company has three operating leases related to its Cineverse India operations, with expiration dates in July 2027. The Company incurred $272 thousand and $423 thousand in rental expense associated with its operating leases during the years ended March 31, 2026 and 2025, respectively.

The Company did not have any sublease arrangements during the twelve months ended March 31, 2026 and accordingly did not recognize any sublease income. The Company recognized $0.2 million sublease income related to its subleasing arrangement during the twelve months ended March 31, 2025.

The table below presents the lease-related assets and liabilities recorded on our Consolidated Balance Sheets (in thousands):


	Classification on the Balance Sheet	2026		2025
Assets
Noncurrent	Other long-term assets	$	378	$	435
Liabilities
Current	Operating leases liabilities		298		187
Noncurrent	Operating leases liabilities, net of current		105		275
		$	403	$	462

The table below presents the annual gross undiscounted cash flows related to the Company's operating lease commitments (in thousands):


Fiscal year ending March 31,	Operating Lease Commitments
2027	$	310
2028		106
Thereafter		—
Total lease payments	$	416
Less imputed interest		(13	)
Total	$	403

For leases which have a term of twelve months or less and do not contain an option to extend which the Company is

reasonably certain to implement, the Company has elected to not apply the recognition provisions of ASC 842

and recognizes these expenses on a straight-line basis over the term of the agreement.

Because our operating leases do not provide a readily determinable implicit rate, the Company estimated its incremental borrowing rate to discount the lease payments based on information available at our lease commencement date. The weighted average discount rate utilized was 4.61%.

In the ordinary course of business, the Company enters into contractual arrangements, from time to time, under which it agrees to commitments with content providers for certain rights which are in production or have not yet been completed, delivered to, and accepted by the Company. Based on the nature of these agreements, which may be subject to delay or project abandonment, there is uncertainty with the amounts and timing of its commitments. Certain of these advances are eligible to be recouped through future revenue sharing arrangements. Based on the stage of the Company's projects, the table presented below represents an estimate of the Company's gross project commitments over the next five fiscal years (in thousands):


	Fiscal Year Ended March 31,
	2027		2028		2029		2030		2031
Total Project Commitments	$	4,339	$	204	$	—	$	—	$	—