PodcastOne, Inc. Leases Disclosure
Note 6 — Leases
The Company's operating leases with lease terms of greater than 12 months are capitalized in operating lease right-of-use assets and operating lease liabilities in the accompanying consolidated balance sheets. Rent expense for these operating leases totaled $0.1 million and $0.1 million for the years ended March 31, 2026 and 2025, respectively.
Operating lease cost for the years ended March 31, 2026 and 2025 consist of the following (in thousands):
| Year Ended | Year Ended | |||||||
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| Fixed rent cost | $ | $ | - | |||||
| Short term lease cost | 80 | 68 | ||||||
| Total operating lease cost | $ | 116 | $ | 68 | ||||
Supplemental balance sheet information related to leases was as follows (in thousands):
| March 31, | March 31, | |||||||
| Operating leases | 2026 | 2025 | ||||||
|
| $ | $ | - | |||||
| Operating lease liability, current | $ | $ | - | |||||
| Operating lease liability, noncurrent | 97 | - | ||||||
| Total operating lease liabilities | $ | $ | - | |||||
Significant judgments
Discount rate – the Company’s lease is discounted using the Company’s incremental borrowing rate of 3.43% as the rate implicit in the lease is not readily determinable.
Options – the lease term is the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs.
Lease and non-lease components – non-lease components were considered and determined not to be material.
Future maturities of our operating lease is as follows (in thousands):
| For Years Ending March 31, | ||||
| 2027 | $ | 103 | ||
| 2028 | 69 | |||
| Total lease payments | 172 | |||
| Less: imputed interest | (5 | ) | ||
| Present value of operating lease liabilities | $ | 167 |
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About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.