LEASES

6 Months Ended

Sep. 30, 2023

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.

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 September 30, 2023, the Company had no finance leases.

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


	Three months ended September 30,				Six months ended September 30,
	2023		2022		2023		2022
Lease Cost
Finance lease cost	$	—	$	102,673	$	—	$	205,975
Amortization of right-of-use assets	—		102,274		—		204,552
Interest on lease liabilities	—		399		—		1,423
Operating lease cost	$	6,362,566	$	7,604,721	$	12,836,401	$	14,267,032

Variable lease cost	$	890,051	$	920,545	$	1,920,726	$	1,851,629

Total lease cost	$	7,252,617	$	8,627,939	$	14,757,127	$	16,324,636

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


	Three months ended September 30,						Six months ended September 30,
	2023			2022			2023			2022
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	6,329,622		$	6,723,622		$	12,699,941		$	13,448,214
Operating cash flows from finance leases	—			399			—			1,423
Operating cash flows from operating leases	6,329,622			6,677,299			12,699,941			13,366,724
Financing cash flows from finance leases	—			45,924			—			80,067

Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,946,228		$	5,112,689		$	8,992,479		$	10,465,379
Weighted-average remaining lease term — finance leases	—			—			—			—
Weighted average remaining lease term — operating leases	7.0 years			7.1 years			7.0 years			7.1 years
Weighted-average discount rate — finance leases	—		%	—		%	—		%	—		%
Weighted-average discount rate — operating leases	6.2		%	6.1		%	6.2		%	6.1		%

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


	Operating Leases
Remainder of 2024	$	11,910,201
2025	20,523,579
2026	17,022,023
2027	12,939,221
2028	10,324,644
Thereafter	30,418,206
Total undiscounted lease liability	$	103,137,874
Imputed interest	20,189,711
Total discounted lease liability	$	82,948,163

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