v3.26.1
Leases
 3 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES

11 — LEASES

 

The Company adopted Topic 842 for all periods presented. At the inception of a contract, the Company determines if the arrangement is, or contains, a lease. The Company’s leases mainly consisted of offices, retail stores, and warehouses.

 

The Company’s operating right-of-use (“ROU”) assets and lease liabilities were as follows:

 

    As of
June 30,		     As of
March 31,		  
    2026     2026  
Operating ROU:            
ROU assets   $ 3,700,499     $ 4,289,237  
Total operating ROU assets   $ 3,700,499     $ 4,289,237  

 

    As of
June 30,		     As of
March 31,		  
    2026     2026  
Operating lease obligations:            
Current operating lease liabilities   $ 1,395,477     $ 1,507,340  
Non-current operating lease liabilities     2,781,430       3,302,325  
Total lease liabilities   $ 4,176,907     $ 4,809,665  

 

The Company had 6 and 9 leases as of June 30, 2026 and March 31, 2026, respectively.

 

The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of June 30, 2026 were as follows:

 

Remaining lease term and discount rate:

 

Weighted average annual discount rate     7.1 %
Weighted average remaining lease term (years)     2.76 years  

 

The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of March 31, 2026 were as follows:

 

Remaining lease term and discount rate:

 

Weighted average annual discount rate     7.2 %
Weighted average remaining lease term (years)     2.93 years  

 

The Company leases its offices, warehouse, and retail stores under non-cancellable operating lease agreements. During the three months ended June 30, 2026, lease expenses were approximately $0.4 million, including approximately $0.3 million in cost of revenues and approximately $0.1 million in selling expense and nil in general and administrative expense. During the three months ended June 30, 2025, lease expenses were $0.8 million, including $0.4 million in cost of revenues and $0.4 million in selling expense.

 

As of June 30, 2026, future minimum lease liabilities, all under office and facilities non-cancellable operating lease agreements, were as follows:

 

    Operating
  
    Lease
  
Twelve months ending June 30,   Liabilities  
2027   $ 1,638,416  
2028     1,674,083  
2029     1,288,510  
Thereafter     —  
Total lease payments     4,601,009  
Less: interest     (424,102 )
Present value of lease liabilities   $ 4,176,907