Intangible Assets (Tables)

6 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of net intangible assets

	September 30, 2020			March 31, 2020
License (1)	$	2,337,529		$	2,220,512
Software(2)		1,162,623			1,083,024
Land use rights (3)		1,433,361			1,375,095
Total intangible assets		4,933,513			4,678,631
Less: accumulated amortization		(850,283	)		(667,633	)
Less: impairment(4)		(643,184	)		(617,038	)
Intangible assets, net	$	3,440,046		$	3,393,960

Amortization expense of intangibles amounted to $84,608 and $44,423 for the three months ended September 30, 2020 and 2019, respectively. Amortization expense of intangibles amounted to $149,997 and $102,889 for the six months ended September 30, 2020 and 2019, respectively.

(1)	This represents the fair value of the licenses of insurance applicable drugstores acquired from a variety of drugstores such as Sanhao Pharmacy and several local stores. The licenses allow patients to pay by using insurance cards at stores. The stores are reimbursed from the Human Resource and Social Security Department of Hangzhou City. In 2014, the Company acquired Sanhao Pharmacy, a drugstore chain. In September 2017, the Company acquired several new stores for the purpose of the Municipal Social Medical Reimbursement Qualification Certificates. On January 9, 2020, the Company acquired a local drugstore chain. The acquired drugstores ceased their stores' business and liquidated all of the stores' accounts after Jiuzhou Pharmacy acquired them. In March 2020, the drugstore chain has dissolved and its certificates were transferred to new stores opened at the same time.
(2)	These balances primarily include the SAP ERP system, the Internet Clinic Diagnosis Terminal system and the Chronic Disease Management system. In 2017, the Company installed a leading ERP system, SAP from Germany. SAP is a well-known management system used by many fortune 500 companies. It is being amortized over three years since its installation. In 2020, the Company installed an internet Clinic Diagnosis System used to strengthen its ability to perform online diagnosis which may increase more customer spending and a Chronic Disease Management System used to better manage and monitor its members' health. As of September 30, 2020, the SAP system has a net value of $739,257 (RMB 5,029,372), the internet Clinic Diagnosis System has a net value of approximately $395,208 (RMB 2,688,709), and the Chronic Disease Management System has a net value of approximately $17,106 (RMB 116,379).
(3)	In July 2013, the Company purchased the land use rights of a plot of land in Lin'an, Hangzhou, intended for the establishment of an herb processing plant in the future. However, as the Company's farming business in Lin'an has not grown, the Company does not expect the completion of the plant in the near future.
(4)	In the year ended March 31, 2020, the Company evaluated the licenses of insurance applicable drugstores acquired in the past based on the discounted positive cash value. Due to the stricter government insurance policy in fiscal year 2021, the value of these licenses has declined. As a result, the Company recorded an impairment. There are no impairment expenses in the six months ended September 30, 2020 and 2019.