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Leases | 9 Months Ended
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Jan. 31, 2024
Leases [Abstract] |
Leases | 13. Leases The Company accounted for leases in accordance with ASU No. 2016-02, Leases (Topic 842) for all periods presented. The Company leases certain supermarkets and office facilities from third parties. Some of the Company’s leases include one or more options to renew, which are typically at the Company’s sole discretion. The Company evaluates the renewal options, and when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in re-measurement of the right of use (“ROU”) assets and lease liabilities. Operating ROU assets and lease liabilities are recognized at the lease commencement date, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment and over a similar term. The Company’s leases mainly consist of store rent and copier rent. The store lease detail information is listed below:
Store |  | Lease Term Due
Maison Monrovia * |  | August 31, 2055 (with extension)
Maison San Gabriel |  | November 30, 2030
Maison El Monte |  | July 14, 2028
Maison Monterey Park |  | May 1, 2028
* | On April 1, 2023, the Company renewed lease of Maison Monrovia for additional five years with new monthly based rent of $40,000 for first year and 3% increase for each of the next four years. On July 6, 2023, the Company and the lessor entered an amendment to lease, pursuant to which the lessor will provide monthly basic rent abatement of $5,000 from August 1, 2023 through March 31, 2024, $2,500 from April 1, 2024 through March 31, 2025, and $1,000 from April 1, 2025 through March 31, 2026. As a result of increased monthly base rent, the Company remeasured the lease and determined the ROU and lease liability of this lease increased by $3.62 million for each.
As of January 31, 2024, the average remaining term of the supermarkets’ store lease was 9.47 years. In June and November 2022, the Company entered three leases for three copiers with terms of 63 months for each. As of January 31, 2024, the average remaining term of the copier lease was 3.78 years. The copier lease detail information was listed below:
Store |  | Lease Term Due
Maison Monrovia |  | January 1, 2028
Maison San Gabriel |  | January 1, 2028
Maison Monterey Park |  | August 1, 2027
The Company’s total lease expenses under ASC 842 are $0.85 million and $0.76 million for the three months ended January 31, 2024 and 2023, respectively. The Company’s total lease expenses under ASC 842 are $2.33 million and $1.99 million for the nine months ended January 31, 2024 and 2023 , respectively. The Company’s ROU assets and lease liabilities are recognized using an effective interest rate of range from 4.5% to 6.25%, which was determined using the Company’s incremental borrowing rate. The Company’s operating ROU assets and lease liabilities were as follows:
|  | January 31, 2024 |  |  | April 30, 2023 |
Operating ROU: |  |  |  |  |  |
ROU assets – supermarket leases |  | $ | 20,980,731 |  |  | $ | 22,517,925 |
ROU assets – copier leases |  |  | 24,033 |  |  |  | 27,265 |
Total operating ROU assets |  | $ | 21,004,764 |  |  | $ | 22,545,190 |
|  | January 31, 2024 |  |  | April 30, 2023 |
Operating lease obligations: |  |  |  |  |  |
Current operating lease liabilities |  | $ | 1,850,310 |  |  | $ | 1,761,182 |
Non-current operating lease liabilities |  |  | 21,309,934 |  |  |  | 22,711,760 |
Total lease liabilities |  | $ | 23,160,244 |  |  | $ | 24,472,942 |
As of January 31, 2024, the five-year maturity of the Company’s operating lease liabilities was as follow:
Twelve Months Ended January 31, |  | Operating lease liabilities |
2025 |  | $ | 2,835,070 |
2026 |  |  | 2,897,055 |
2027 |  |  | 2,955,250 |
2028 |  |  | 3,002,423 |
2020 |  |  | 2,029,711 |
Thereafter |  |  | 23,549,256 |
Total future undiscounted lease payments |  |  | 37,268,765 |
Less: interest |  |  | (14,108,521 | )
Present value of lease liabilities |  | $ | 23,160,244 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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