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Segments
 12 Months Ended
Mar. 31, 2024
Segments [Abstract]  
SEGMENTS

Note 22 – SEGMENTS

 

The Company operates within three main reportable segments: retail drugstores, online pharmacy, and drug wholesale. The retail drugstores segment sells prescription and over-the-counter (“OTC”) medicines, TCM, dietary supplements, medical devices, and sundry items to retail customers. The online pharmacy sells prescription drugs, OTC drugs, dietary supplements, medical devices and sundry items to customers through several third-party platforms such as Alibaba’s Tmall, JD.com and Amazon.com, and the Company’s own platform all over China. The drug wholesale segment includes supplying the Company’s own retail drugstores with prescription and OTC medicines, TCM, dietary supplement, medical devices and sundry items (which sales have been eliminated as intercompany transactions), and also selling them to other drug vendors and hospitals. The Company is also involved in online sales and clinic services that do not meet the quantitative thresholds for reportable segments and are included in the retail drugstores segment. The segments’ accounting policies are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before interest and income taxes not including nonrecurring gains and losses.

 

The Company’s reportable business segments are strategic business units that offer different products and services. Each segment is managed separately because they require different operations and markets to distinct classes of customers.

 

The following table presents summarized information by segment of the continuing operations for the year ended March 31, 2024:

 

   Retail
drugstores		   Online
Pharmacy		   Drug
wholesale		   Total 
Revenue  $75,678,470   $31,857,883   $47,004,724   $154,541,077 
Cost of goods   53,056,339    28,249,883    42,126,307    123,432,529 
Gross profit  $22,622,131   $3,608,000   $4,878,417   $31,108,548 
Selling expenses   21,680,509    4,770,855    934,223    27,385,587 
General and administrative expenses   5,195,153    466,151    1,596,220    7,257,524 
Loss from operations  $(4,253,531)  $(1,629,006)  $2,347,974   $(3,534,563)
Depreciation and amortization  $754,448   $
-
   $36,001   $790,449 
Total capital expenditures  $855,497   $
-
   $1,168   $856,665 

  

The following table presents summarized information by segment of the continuing operations for the year ended March 31, 2023:

 

   Retail
drugstores		   Online
Pharmacy		   Drug
wholesale		   Total 
Revenue  $83,351,768   $32,385,089   $33,075,119   $148,811,976 
Cost of goods   56,551,607    28,506,228    29,473,677    114,531,512 
Gross profit  $26,800,161   $3,878,861   $3,601,442   $34,280,464 
Selling expenses   23,644,339    4,266,799    1,266,025    29,177,163 
General and administrative expenses   13,803,165    439,667    1,425,852    15,668,684 
Stock based compensation   10,360,000    
-
    
-
    10,360,000 
Loss from operations  $(21,007,343)  $(827,605)  $909,565   $(20,925,383)
Depreciation and amortization  $686,777   $
-
   $31,225   $718,002 
Total capital expenditures  $303,312   $
-
   $704   $304,016 

 

The following table presents summarized information by segment of the continuing operations for the year ended March 31, 2022:

 

   Retail
drugstores		   Online
Pharmacy		   Drug
wholesale		   Total 
Revenue  $84,228,492   $30,219,364   $49,944,699   $164,392,555 
Cost of goods   57,290,850    26,621,314    43,961,351    127,873,515 
Gross profit  $26,937,642   $3,598,050   $5,983,348   $36,519,040 
Selling expenses   25,186,258    3,972,465    1,718,236    30,876,959 
General and administrative expenses   6,766,022    285,062    1,136,092    8,187,176 
Impairment of long-lived assets   148,795    
-
    
-
    148,795 
Loss from operations  $(5,163,433)  $(659,477)  $3,129,020   $(2,693,890)
Depreciation and amortization  $1,234,419   $
-
   $22,072   $1,256,491 
Total capital expenditures  $296,562   $
-
   $2,911   $299,473 

 

The Company does not have long-lived assets located outside the PRC. In accordance with the enterprise-wide disclosure requirements of FASB’s accounting standard, the Company’s net revenue from external customers through its retail drugstores by main product category for the years ended March 31, 2024, 2023 and 2022 were as follows: 

 

   For the years ended 
   March 31, 
   2024   2023   2022 
Prescription drugs  $25,269,177   $27,212,994   $28,503,283 
OTC drugs   31,542,597    32,358,339    35,658,864 
Nutritional supplements   9,890,985    8,737,519    9,664,071 
TCM   3,405,979    9,719,653    5,353,900 
Sundry products   1,129,647    1,082,168    1,544,639 
Medical devices   4,440,085    4,241,095    3,503,735 
Total  $75,678,470   $83,351,768   $84,228,492 

  

The Company’s net revenue from external customers through online pharmacy by main product category is as follows:

 

   For the years ended 
   March 31, 
   2024   2023   2022 
Prescription drugs  $9,151,412   $10,606,244   $10,331,652 
OTC drugs   12,969,313    13,870,953    11,473,177 
Nutritional supplements   4,284,556    2,740,253    2,014,011 
TCM   571,769    434,920    315,231 
Sundry products   1,448,537    1,129,701    2,271,009 
Medical devices   3,432,296    3,603,018    3,814,284 
Total  $31,857,883   $32,385,089   $30,219,364 

 

The Company’s net revenue from external customers through wholesale by main product category is as follows:

 

   For the years ended 
   March 31, 
   2024   2023   2022 
Prescription drugs  $30,784,949   $21,617,636   $41,116,991 
OTC drugs   11,323,730    10,289,987    7,903,824 
Nutritional supplements   741,883    310,909    424,210 
TCM   388,396    458,502    241,828 
Sundry products   692,101    64,422    93,338 
Medical devices   3,073,665    333,663    164,508 
Total  $47,004,724   $33,075,119   $49,944,699