Leases

3 Months Ended

Jun. 30, 2024

Leases

Leases

Note 6 — Leases

The Company treats a contract as a lease when the contract conveys the right to use a physically distinct asset for a period in exchange for consideration, or the Company directs the use of the asset and obtains substantially all the economic benefits of the asset. These leases are recorded as right-of-use (“ROU”) assets and lease obligation liabilities for leases with terms greater than 12 months. ROU assets represent the Company’s right to use an underlying asset for the entirety of the lease term. Lease liabilities represent the Company’s obligation to make payments over the life of the lease. A ROU asset and a lease liability are recognized at commencement of the lease based on the present value of the lease payments over the life of the lease. Initial direct costs are included as part of the ROU asset upon commencement of the lease. Since the interest rate implicit in a lease is generally not readily determinable for the operating leases, the Company uses an incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease term to obtain an asset of similar value.

The Company reviews the impairment of ROU assets consistent with the approach applied for the Company’s other long-lived assets. The Company reviews the recoverability of long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company elected the practical expedient to exclude short-term leases (leases with original terms of 12 months or less) from ROU asset and lease liability accounts.

Supplemental balance sheet information related to leases were as follows:

	As of
	June 30, 2024		March 31, 2024
Assets
Right of use asset, net	$	138,992	$	156,517
Operating lease liabilities
Current		70,487		70,487
Non-current		67,524		84,950
Total Lease Liabilities	$	138,011	$	155,797

The components of lease cost were as follows:

	For three months ended June 30,
	2024		2023
Depreciation	$	17,525	$	7,379
Interest on lease obligation		1,719		12,618
Total lease cost	$	19,244	$	19,997

Lease term and discount rate were as follows:

	For the three months ended June 30,
	2024			2023
Weighted average remaining lease term - Operating leases		2 years			3 years
Weighted average discount rate - Operating leases		3	%		3	%