LEASES

12 Months Ended

Mar. 31, 2026

NOTE 15. LEASES

The Company leases its business premises under operating leases which have expiration dates between 2028 – 2033. Many of the Company’s leases provide for future rent escalations and renewal options. Most of the Company’s leases also obligate the Company to pay, as lessee, variable lease cost related to an allocation of maintenance, insurance and property taxes.

The Company defines lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on the Company’s assessment of relevant economic factors. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the Company, irrespective of when lease payments begin under the contract.

The Company recognizes a right-of-use (“ROU”) asset and lease liability at lease commencement, which are measured by discounting lease payments using the Company’s incremental borrowing rate as the discount rate. The Company determines the incremental borrowing rate applicable to each lease by reference to its outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU

asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows.

The Company reassesses lease classification and remeasures ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost.

The following is a summary of lease cost for the fiscal years ended March 31, 2026 and 2025:


	2026		2025
Operating lease cost	$	1,632,402	$	1,520,568
Variable lease cost		74,375		68,278
Total lease cost	$	1,706,777	$	1,588,846

The following is a summary of supplemental cash flow information related to leases for the fiscal years ended March 31, 2026 and 2025:


	2026		2025
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,513,227	$	1,455,611
Right-of-use assets received in exchange for operating lease obligations	$	3,091,659	$	—

Supplemental balance sheet information related to leases is as follows:


	Classification		2026		2025

Operating lease right-of-use assets	Operating lease right of use assets, net		$	7,889,862	$	5,949,418

Current portion of operating lease liabilities	Other current liabilities		$	1,233,305	$	988,099
Noncurrent portion of operating lease liabilities	Operating lease liabilities, net of current portion		$	7,445,152	$	5,723,930

The following is a summary of the weighted average remaining lease term and average discount rate for the Company’s operating leases as of March 31, 2026 and 2025:


		2026		2025
Weighted-average remaining lease term (in years)		6.3		7.0
Weighted-average discount rate		6.0	%	6.2	%

Maturities of the Company’s operating lease liabilities as of March 31, 2026 were as follows for the fiscal years ending March 31:


2027	$	1,725,165
2028		1,777,615
2029		1,614,531
2030		1,402,343
2031		1,410,567
Thereafter		2,625,255
Total lease payments		10,555,476
Less: imputed interest		(1,877,019)
Present value of operating lease payments		8,678,457
Less: current portion of operating lease liabilities		(1,233,305)
Operating lease liabilities, net of current portion	$	7,445,152