LEASES

3 Months Ended

Jun. 30, 2023

LEASESAccounting 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.

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. As of June 30, 2023, the Company had no finance leases.

The following table reports information about the Company's lease cost for the three months ended June 30, 2023 and 2022:


	Three months ended June 30,
	2023		2022
Lease Cost
Finance lease cost	$	—	$	103,302
Amortization of right-of-use assets	—		102,278
Interest on lease liabilities	—		1,024
Operating lease cost	$	6,141,171	$	6,662,311

Variable lease cost	$	1,030,675	$	931,084

Total lease cost	$	7,171,846	$	7,696,697

The following table reports other information about the Company's leases for the three months ended June 30, 2023 and 2022:


	Three months ended June 30,
	2023			2022
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	6,324,218		$	6,724,592
Operating cash flows from finance leases	—			1,024
Operating cash flows from operating leases	6,324,218			6,689,425
Financing cash flows from finance leases	—			34,143

Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,046,251		$	5,352,690
Weighted-average remaining lease term — finance leases	—			0.4 years
Weighted average remaining lease term — operating leases	7.1 years			7.2 years
Weighted-average discount rate — finance leases	—		%	6.0		%
Weighted-average discount rate — operating leases	6.1		%	6.1		%

The aggregate annual lease obligations as of June 30, 2023 are as follows:


	Operating Leases
Remainder of 2024	$	17,407,197
2025	19,180,075
2026	15,695,818
2027	11,797,164
2028	9,231,916
Thereafter	28,762,038
Total undiscounted lease liability	$	102,074,208
Imputed interest	20,085,310
Total discounted lease liability	$	81,988,898

The Company had no leases with related parties at June 30, 2023 or March 31, 2023.