The Company has three operating leases related to its Cineverse India operations with expiration dates in July 2027. In addition, the company maintains office locations in New York, NY and Burbank, CA with lease terms ending in May, 2029 and June, 2029, respectively.

During the three months ended June 30, 2026 and 2025, expenses related to these leases were $208 thousand and $49 thousand, respectively.

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


	Classification on the Balance Sheet	June 30, 2026		March 31, 2026
Assets
Noncurrent	Other long-term assets	$	2,069	$	378
Liabilities
Current	Operating leases liabilities		836		298
Noncurrent	Operating leases liabilities, net of current		1,289		105
		$	2,125	$	403

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 (remainder of the fiscal year)	$	682
2028		767
2029		681
2030		153
Total lease payments	$	2,283
Less imputed interest		(158	)
Total	$	2,125

For leases that have a term of twelve months or less and do not contain an option to extend that the Company is reasonably certain to exercise, the Company has elected to not apply the recognition provisions of FASB ASC Topic 842, Leases ("ASC 842") and recognizes these expenses on a straight-line basis over the term of the agreement.