v3.26.1
Segment Reporting
 12 Months Ended
Mar. 31, 2026
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, Canada and Australia. Online stores and services segment includes sales through the Company’s websites and various e-commerce marketplaces in Japan, 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, 2026, 2025, and 2024, respectively:

 

    For the Fiscal Year ended March 31, 2026  
    Directly-
Operated
Physical
Stores		     Online
Stores and
Services		     Franchise
Stores and
Wholesale
Customers		     Total  
Revenue   $ 19,787,252     $ 6,688,079     $ 346,748,488     $ 373,223,819  
Merchandise costs   $ 15,124,703     $ 4,381,980     $ 325,611,870     $ 345,118,553  
Interest expenses, net   $ (105,318 )   $ (35,597 )   $ (1,845,568 )   $ (1,986,483 )
Income tax provision   $ 164,495     $ 55,599     $ 2,882,592     $ 3,102,686  
Net income   $ 34,530     $ 11,671     $ 605,095     $ 651,296  
Depreciation and amortization   $ 60,997     $ 20,617     $ 1,068,905     $ 1,150,519  
Capital expenditures   $ 310,111     $ 75     $ 3,809     $ 313,995  

   

    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  

 

    March 31,
2026		     March 31,
2025		  
Total assets:            
Franchise Stores and Wholesale Customers   $ 217,580,900     $ 132,909,152  
Directly-Operated Physical Stores     12,089,250       14,618,642  
Online Stores and Services     3,965,605       10,302,391  
Total assets   $ 233,635,755     $ 157,830,185  
                 
Total liabilities:                
Franchise Stores and Wholesale Customers   $ 176,153,828     $ 92,421,807  
Directly-Operated Physical Stores     13,032,588       12,247,978  
Online Stores and Services     3,284,161       10,146,370  
Total liabilities   $ 192,470,577     $ 114,816,155  

 

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

 

    March 31,
2026		     March 31,
2025		  
Japan   $ 6,879,404     $ 13,932,880  
The United States     3,479,298       4,353,220  
Other overseas countries     2,684,961       609,037  
Hong Kong     1,155,841       1,716,744  
Total long-live assets   $ 14,199,504     $ 20,611,880  

 

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, 2026, 2025, and 2024.