15. LEASES

Lessor

The Company’s operating leases for automobile rentals have rental periods that are typically short term, generally is twelve months or less. In the revenue recognition section of Note 3 (q), the Company discloses that revenue earned from automobile rentals, wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, is accounted for under Topic 842 upon adoption for the years ended March 31, 2026 and 2025.

Lessee

As of March 31, 2026 and 2025, the Company has engaged in offices and showroom leases which were classified as operating leases. Payments under the Company’s lease arrangement are fixed.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate applied to the remaining balance of the liability.

As of March 31, 2026, the weighted-average remaining operating lease term of its existing leases is approximately 1.17 years.

Operating lease expense for office and showroom leases totaled $41,067 and $73,736 for the years ended March 31, 2026 and 2025 respectively, of which $38,508 and $53,272 were amortization of leased asset for operating leases for the years ended March 31, 2026 and 2025, respectively.

The following table sets forth the Company’s minimum lease payments in future periods: