LEASES

9 Months Ended

Dec. 31, 2022

Accounting Policies and Matters Requiring Management's Judgment

The Company uses its effective annual interest rate, adjusted for certain assumptions, as the discount rate when evaluating leases under Topic 842. Management applies the adjusted effective annual interest rate to leases entered for the entirety of the subsequent year.

Based on its historical practice, the Company believes it is reasonably certain to exercise a given option associated with a given office space lease. Therefore, the Company classifies all lease options for office space as “reasonably certain” unless it has specific knowledge to the contrary for a given lease. The Company generally does not believe it is reasonably certain to exercise any options associated with its office equipment leases.

Periodic Disclosures

The Company's operating leases consist of real estate leases for office space as well as office equipment. Both the branch real estate and office equipment lease terms generally range from three years to five years, and generally contain options to extend which mirror the original terms of the lease.

The Company's finance leases consist of IT equipment which have a three year lease term and do not contain an option to extend the lease term, but do contain an option to purchase the IT equipment at the expiration of the lease term. During the second quarter of fiscal 2023, the lease terms associated with the Company's finance leases expired and the Company exercised its purchase option to acquire the IT equipment. Because it was reasonably certain that the Company would obtain the assets at the end of their lease terms, the right-of-use assets have amortized over the useful life of the asset, rather than over the lease term.

The following table reports information about the Company's lease cost for the three and nine months ended December 31, 2022 and 2021:


	Three months ended December 31,				Nine months ended December 31,
	2022		2021		2022		2021
Lease Cost
Finance lease cost	$	—	$	105,639	$	205,975	$	323,880
Amortization of right-of-use assets	—		101,906		204,552		305,718
Interest on lease liabilities	—		3,733		1,423		18,162
Operating lease cost	$	6,746,965	$	6,723,789	$	21,013,997	$	20,421,780

Variable lease cost	$	920,991	$	904,015	$	2,772,620	$	2,690,848

Total lease cost	$	7,667,956	$	7,733,443	$	23,992,592	$	23,436,508

The following table reports other information about the Company's leases for the three and nine months ended December 31, 2022 and 2021:


	Three months ended December 31,						Nine months ended December 31,
	2022			2021			2022			2021
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	6,550,184		$	6,825,474		$	19,998,398		$	20,796,373
Operating cash flows from finance leases	—			3,733			1,423			18,162
Operating cash flows from operating leases	6,550,184			6,684,414			19,916,908			20,339,163
Financing cash flows from finance leases	—			137,327			80,067			439,048
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	—		$	—		$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,447,091		$	2,763,875		$	13,912,470		$	11,840,569
Weighted-average remaining lease term — finance leases	—			0.5 years			—			0.5 years
Weighted average remaining lease term — operating leases	7.1 years			7.1 years			7.1 years			7.1 years
Weighted-average discount rate — finance leases	—		%	6.1		%	—		%	6.1		%
Weighted-average discount rate — operating leases	6.1		%	6.1		%	6.1		%	6.1		%

The aggregate annual lease obligations as of December 31, 2022, are as follows:


	Operating

Remainder of 2023	$	6,357,453
2024	22,784,456
2025	18,108,324
2026	14,629,113
2027	10,545,420
Thereafter	35,219,893
Total undiscounted lease liability	$	107,644,659
Imputed interest	21,634,465
Total discounted lease liability	$	86,010,194

The Company had no finance lease obligations at December 31, 2022. The Company had no leases with related parties at December 31, 2022 or March 31, 2022.