Leases

6 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

Note 14 – LEASES

The Company leases most of its retail stores and corporate offices under operating leases, typically with initial terms of 3 to 10 years. Usually within one to three months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restriction or covenants. If both parties agree to continue, a new lease contract with new lease terms has to been signed by both parties. Usually the rent may increase year by year based on the lease contract. Sublease is typically not allowed. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. The Company does not have any leases entered into but which have not yet commenced. The net lease cost for the six months ended September 30, 2020 is $3,425,594. The Company does not have finance lease according to the definition of ASU 2016-02, Leases (Topic 842). Supplemental cash flow information related to leases for the six months ended September 30, 2020 is as follows:

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	3,425,594
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		-

Supplemental balance sheet information related to leases as of September 30, 2020 is as follows:

Operating leases:
Operating lease right-of-use assets	$	19,946,821
Current portion of operating lease liabilities	$	1,056,181
Long-term operating lease liabilities		16,500,499
Total operating lease liabilities	$	17,556,680
Weighted average remaining lease term
Operating leases		2.9
Weighted average discount rate
Operating leases		4.19	%

The following table summarizes the maturity of lease liabilities under operating leases as of September 30, 2020:

	Operating
For the year ending September 30,	Leases
2021	$	1,070,963
2022		6,245,719
2023		4,440,048
2024		3,226,584
2025		1,964,284
Thereafter		2,534,667
Total lease payments		19,482,265
Less: imputed interest		(1,925,585	)
Total lease liabilities	$	17,556,680