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Leases
 12 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases

Note 13 – Leases

 

The Company leases most of its retail stores and corporate offices under operating leases, typically with initial terms of 3 to 10 years. Usually within one to three months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restriction or covenants. If both parties agree to continue, a new lease contract with new lease terms has to been signed by both parties. Usually the rent may increase year by year based on the lease contract. Sublease is typically not allowed. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. The Company does not have any leases entered into but which have not yet commenced. The net lease cost for the year ended March 31, 2024 is $7,487,456. The Company does not have finance lease according to the definition of ASU 2016-02, Leases (Topic 842). Supplemental cash flow information related to leases for the year ended March 31, 2024 is as follows:

 

Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows paid for operating leases  $7,487,456 
Right-of-use assets obtained in exchange for lease obligations:     
Operating leases   
-
 

 

Supplemental balance sheet information related to leases as of March 31, 2024 is as follows:

 

Operating leases:    
Operating lease right-of-use assets  $13,827,360 
      
Current portion of operating lease liabilities  $4,862,766 
Long-term operating lease liabilities   6,403,858 
Total operating lease liabilities  $11,266,624 
      
Weighted average remaining lease term     
Operating leases   3.93 years 
Weighted average discount rate   4.8%

 

The following table summarizes the maturity of lease liabilities under operating leases as of March 31, 2024:

 

   Operating 
For the year ending March 31,  Leases 
2025  $5,294,771 
2026   2,872,270 
2027   1,913,295 
2028   1,107,753 
2029   448,400 
Thereafter   621,050 
Total lease payments   12,257,539 
Less: imputed interest   (990,915)
Total lease liabilities  $11,266,624