Leases

12 Months Ended

Mar. 31, 2023

Accounting Policies and Matters Requiring Management's Judgment

The Company uses its effective annual or fourth quarter interest rate to determine the discount rate when evaluating leases under Topic 842. Management applies its effective interest rate to leases entered for the entirety of the subsequent year. For example, fiscal 2022’s fourth quarter effective interest rate of 6.0% was used in the determination of lease type as well as the discount rate when calculating the present value of lease payments for all leases entered into in fiscal 2023. Note that in fiscal 2023, it was determined most reasonable to use fiscal 2022's fourth quarter effective interest rate as the Notes was not effective until September 27, 2021.

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 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.

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 are amortized over the useful life of the assets, rather than over the lease terms.

The following table reports information about the Company's lease costs for the years ended March 31, 2023, 2022, and 2021:


	2023		2022		2021
Lease Cost
Finance lease cost	$	205,975	$	427,619	$	466,168
Amortization of right-of-use assets	204,552		407,624		407,624
Interest on lease liabilities	1,423		19,995		58,544
Operating lease cost	$	27,408,284	$	27,529,425	$	27,977,226
Short-term lease cost	—		—		1,800
Variable lease cost	3,710,560		3,629,903		3,621,748

Total lease cost	$	31,324,819	$	31,586,947	$	32,066,942

The following table reports other information about the Company's leases for the years ended March 31, 2023, 2022, and 2021:


	2023			2022			2021
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	26,476,133		$	27,936,317		$	28,211,828
Operating cash flows from finance leases	1,423			19,994			58,544
Operating cash flows from operating leases	26,394,643			27,411,037			27,559,260
Financing cash flows from finance leases	80,067			505,286			594,024
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	—		$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	16,924,511		$	15,381,953		$	12,482,167
Weighted-average remaining lease term — finance leases	—			0.4 years			0.8 years
Weighted average remaining lease term — operating leases	7.1 years			7.3 years			7.3 years
Weighted-average discount rate (monthly) — finance leases	—		%	6.0		%	6.4		%
Weighted-average discount rate — operating leases	6.0		%	6.1		%	6.3		%

The aggregate annual lease obligations as of fiscal year March 31, 2023, are as follows:


	Operating
2024	$	23,157,355
2025	18,479,719
2026	15,057,068
2027	11,178,325
2028	8,640,247
Thereafter	27,716,477
Total undiscounted lease liability	$	104,229,191
Imputed interest	20,494,189
Total discounted lease liability	$	83,735,002

The Company had no leases with related parties as of fiscal year March 31, 2023 or 2022.