v3.25.2
Segment Reporting
 12 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 17 – SEGMENT REPORTING

 

Segments

 

The Company is engaged in the operation of retail and wholesale of Japanese beauty and health products, as well as sundry products and other products and services. The Company’s operations are conducted in three reported segments: (i) directly-operated physical stores, (ii) online stores and services, and (iii) franchise stores and wholesale customers. The Company defines its segments as those operations whose results the CODM regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenue for each of these individual products and services.

 

Directly-operated physical stores segment includes physical stores in Japan, Hong Kong, the United States, and Canada. Online stores and services segment includes sales through the Company’s websites and various e-commerce marketplaces in Japan, mainland China, and Korea, as well as services from advertising business through KOLs and supporting services to online celebrities. Franchise stores and wholesale customers segments include franchise stores in Japan, Hong Kong, the United States Canada, Thailand, and the United Kingdom, and wholesale customers in Japan and other countries including Hong Kong, mainland China, the United States, and Canada.

 

The Company measures the results of its segments using, among other measures, each segment’s revenue, merchandise costs, interest expenses, net, income tax benefit, net income, depreciation and amortization, capital expenditures, total assets as well as total liabilities, which includes certain corporate overhead allocations. From time to time, the Company revises the measurement of each segment’s revenue and other measures, including any corporate overhead allocations, as determined by the information regularly reviewed by its CODM, who has been identified as CEO. When the measurement of a segment significantly changes, previous period amounts and balances are reclassified to be comparable to the current period’s presentation.

 

The following table presents the segment information for the fiscal years ended March 31, 2025, 2024, and 2023, respectively:

 

   For the Fiscal Year ended March 31, 2025 
   Directly-
Operated
Physical
Stores		   Online
Stores and
Services		   Franchise
Stores and
Wholesale
Customers		   Total 
Revenue  $17,105,488   $7,493,259   $185,520,491   $210,119,238 
Merchandise costs  $13,314,278   $5,668,519   $167,219,142   $186,201,939 
Interest expenses, net  $(140,333)  $(61,475)  $(1,522,011)  $(1,723,819)
Income tax benefit  $(153,311)  $(67,160)  $(1,662,766)  $(1,883,237)
Net income  $540,430   $236,741   $5,861,317   $6,638,488 
Depreciation and amortization  $77,511   $33,955   $840,660   $952,126 
Capital expenditures  $992,068   $
-
   $
-
   $992,068 
   For the Fiscal Year ended March 31, 2024 
   Directly-
Operated
Physical
Stores		   Online
Stores and
Services		   Franchise
Stores and
Wholesale
Customers		   Total 
Revenue  $14,951,952   $10,705,449   $170,023,914   $195,681,315 
Merchandise costs  $11,916,702   $7,920,348   $152,469,258   $172,306,308 
Interest expenses, net  $(123,107)  $(88,143)  $(1,399,891)  $(1,611,141)
Provision for income tax  $34,902   $24,989   $396,883   $456,774 
Net income  $571,463   $409,162   $6,498,311   $7,478,936 
Depreciation and amortization  $94,184   $67,434   $1,070,993   $1,232,611 
Capital expenditures  $917,396   $9,766   $2,146   $929,308 

 

   For the Fiscal Year Ended March 31, 2023 
   Directly-
Operated
Physical
Stores		   Online Stores and Services   Franchise
Stores and
Wholesale
Customers		   Total 
Revenue  $11,606,180   $20,700,011   $137,418,155   $169,724,346 
Merchandise costs  $8,882,991   $16,221,524   $115,188,904   $140,293,419 
Interest expenses, net  $(165,628)  $(295,403)  $(1,961,048)  $(2,422,079)
Provision for income tax  $48,853   $87,130   $578,417   $714,400 
Net loss  $(550,399)  $(981,655)  $(6,516,768)  $(8,048,822)
Depreciation and amortization  $83,870   $149,587   $993,039   $1,226,496 
Capital expenditures  $459,856   $366,440   $108,664   $934,960 

 

   March 31,
2025		   March 31,
2024		 
Total assets:        
Directly-Operated Physical Stores  $14,618,642   $10,732,784 
Online Stores and Services   10,302,391    4,323,971 
Franchise Stores and Wholesale Customers   132,909,152    126,940,404 
Total assets  $157,830,185   $141,997,159 
           
Total liabilities:          
Directly-Operated Physical Stores  $12,247,978   $12,841,698 
Online Stores and Services   10,146,370    5,853,185 
Franchise Stores and Wholesale Customers   92,421,807    87,259,492 
Total liabilities  $114,816,155   $105,954,375 

The following table presents the geographic information where the Company’s long-live assets were located:

 

   March 31,
2025		   March 31,
2024		 
Japan  $13,932,880   $16,467,917 
Hong Kong   1,716,744    1,506,962 
The United States   4,353,220    1,270,653 
Other overseas countries   609,037    584,751 
Total long-live assets  $20,611,880   $19,830,282 

 

Disaggregated Revenue

 

The Company disaggregates its revenue by geographic areas, product categories, and distribution channels, which the Company believes best depicts how the nature, amount, timing, and uncertainty of the revenue and cash flows are affected by economic factors. See Note 2 for the Company’s disaggregation of revenue for the fiscal years ended March 31, 2025, 2024, and 2023.