Leases

12 Months Ended

Mar. 31, 2024

Accounting Policies and Matters Requiring Management's Judgment

The Company uses its effective annual 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 2023’s annual effective interest rate of 7.1% 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 2024.

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 ROU assets were amortized over the useful life of the assets, rather than over the lease terms. As of March 31, 2024 and 2023, the Company had no finance leases.

The following table reports information about the Company's lease costs for the years ended March 31, 2024, 2023, and 2022:


	2024		2023		2022
Lease Cost
Finance lease cost	$	—	$	205,975	$	427,619
Amortization of ROU assets	—		204,552		407,624
Interest on lease liabilities	—		1,423		19,995
Operating lease cost	$	25,291,087	$	27,408,284	$	27,529,425
Short-term lease cost	—		—		—
Variable lease cost	3,823,435		3,710,560		3,629,903

Total lease cost	$	29,114,522	$	31,324,819	$	31,586,947

The following table reports other information about the Company's leases for the years ended March 31, 2024, 2023, and 2022:


	2024			2023			2022
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	25,292,363		$	26,476,133		$	27,936,317
Operating cash flows from finance leases	—			1,423			19,994
Operating cash flows from operating leases	25,292,363			26,394,643			27,411,037
Financing cash flows from finance leases	—			80,067			505,286
ROU assets obtained in exchange for new finance lease liabilities	$	—		$	—		$	—
ROU assets obtained in exchange for new operating lease liabilities	$	18,024,157		$	16,924,511		$	15,381,953
Weighted-average remaining lease term — finance leases	—			—			0.4 years
Weighted average remaining lease term — operating leases	6.8 years			7.1 years			7.3 years
Weighted-average discount rate (monthly) — finance leases	—		%	—		%	6.0		%
Weighted-average discount rate — operating leases	6.3		%	6.0		%	6.1		%

The aggregate annual lease obligations as of March 31, 2024, are as follows:


	Operating Leases
2025	$	22,595,008
2026	19,015,580
2027	14,798,976
2028	11,839,812
2029	8,135,173
Thereafter	25,100,542
Total undiscounted lease liability	$	101,485,091
Imputed interest	19,564,226
Total discounted lease liability	$	81,920,865

The Company had no leases with related parties as of March 31, 2024 or 2023.