LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

9 Months Ended

Dec. 31, 2021

Lease Right-of-use Asset And Lease Liabilities

LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

12. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

The Company recognized right-of-use asset as well as lease liability according to the ASC 842, Leases (with the exception of short-term leases). Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2021, with discounted rate of 4.75%. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.

The Company leases its head office. The lease period is 5 years with an option to extend the lease. The Company leases its plant and dormitory for 4.5 years with an option to extend the lease. The Company leased several floors in a commercial building for its sublease business for 3 years with an option to extend the lease.

The Following table summarizes the components of lease expense:

	Three months ended December 31,				Nine months ended December 31,
	2021		2020		2021		2020
Operating lease cost		968,170		444,162		2,878,730		668,883
Short-term lease cost		20,955		-		62,799		-
	$	989,125	$	444,162		2,941,529		668,883

The following table summarizes supplemental information related to leases:

	Three months ended December 31,						Nine months ended December 31,
	2021			2020			2021			2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	989,170		$	444,162			2,941,529			668,883
Right-of-use assets obtained in exchange for new operating leases liabilities		(3,390	)		10,378,042			3,42,457			10,404,962
Weighted average remaining lease term - Operating leases (years)		2.0			3.1			2.0			3.1
Weighted average discount rate - Operating leases		4.75	%		4.35	%		4.75	%		4.35	%

The following table summarizes the maturity of operating lease liabilities:

Years ending December 31	Lease cost
2022	$	3,877,767
2023		3,857,516
2024		103,853
Total lease payments		7,839,136
Less: Interest		(531,253	)
Total	$	7,307,883