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. Revenue recognition section of Note 3 (o), 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 nine months ended December 31, 2025 and 2024.

Lessee

As of December 31, 2025 and March 31, 2025, the Company has engaged in offices and parking lot which were classified as operating leases.

The Company leased automobiles under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. In addition, the Company had automobiles leases which were classified as finance lease before the disposal of Corenel on April 16, 2025.

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. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on a straight-line basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. 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 of the automobile loans on the remaining balance of the liability.

As of December 31, 2025, the weighted-average remaining operating term of its existing leases is approximately 1.41.

Operating lease expenses for offices and showroom leases totaled $12,776 and $14,642 for the three months ended December 31, 2025 and 2024, respectively, of which $8,546 and $10,169 were amortization of leased asset for operating leases for the three months ended December 31, 2025 and 2024, respectively.

Operating lease expense for office and showroom leases totaled $42,024 and $58,542 for the nine months ended December 31, 2025 and 2024 respectively, of which $29,454 and $43,639 were amortization of leased asset for operating leases for the nine months ended December 31, 2025 and 2024, respectively.

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