| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES Basis of presentation and consolidation The accompanying condensed consolidated
financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US
GAAP"). The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries
and VIEs. All significant inter-company transactions and balances between the Company, its subsidiaries and VIEs are eliminated
upon consolidation. Consolidation of variable interest entities In accordance with accounting standards
regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their
activities without additional financial support from other parties or whose equity holders lack adequate decision making ability.
All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of
the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company has concluded, based on the
contractual arrangements, that Jiuzhou Pharmacy (including its subsidiaries and controlled entities), Jiuzhou Clinic and Jiuzhou
Service are each a VIE and that the Company's wholly-owned subsidiary, Jiuxin Management, absorbs a majority of the risk
of loss from the activities of these companies, thereby enabling the Company, through Jiuxin Management, to receive a majority
of their respective expected residual returns. Control and common control are defined
under the accounting standards as "an individual, enterprise, or immediate family members who hold more than 50 percent of
the voting ownership interest of each entity." Because the Owners collectively own 100% of Jiuzhou Pharmacy, Jiuzhou Clinic
and Jiuzhou Service, and have agreed to vote their interests in concert since the establishment of each of these three companies
as memorialized in the voting rights agreement, the Company believes that the Owners collectively have control and common control
of the three companies. Accordingly, the Company believes that Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service were constructively
held under common control by Jiuxin Management as of the time the Contractual Agreements were entered into, establishing Jiuxin
Management as their primary beneficiary. Jiuxin Management, in turn, is owned by Renovation, which is owned by the Company. Risks and Uncertainties The operations of the Company are located
in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by political,
economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's operations
in the PRC are subject to special considerations and significant risks not typically associated with companies in North America
and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign
currency exchange. The Company's results may be adversely affected by changes in the political, regulatory and social conditions
in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing
laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. The Company has significant cash deposits
with suppliers in order to obtain and maintain inventory. The Company's ability to obtain products and maintain inventory
at existing and new locations is dependent upon its ability to post and maintain significant cash deposits with its suppliers.
In the PRC, many vendors are unwilling to extend credit terms for product sales that require cash deposits to be made. The Company
does not generally receive interest on any of its supplier deposits, and such deposits are subject to loss as a result of the creditworthiness
or bankruptcy of the party who holds such funds, as well as the risk from illegal acts such as conversion, fraud, theft or dishonesty
associated with the third party. If these circumstances were to arise, the Company would find it difficult or impossible, due to
the unpredictability of legal proceedings in China, to recover all or a portion of the amount on deposit with its suppliers. Members of the current management
team own controlling interests in the Company and are also the Owners of the VIEs in the PRC. The Company only controls the
VIEs through contractual arrangements which obligate it to absorb the risk of loss and to receive the residual expected
returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit
them to expire at the end of the agreement terms, as a result of which the Company would not retain control of the VIEs. Use of estimates The preparation of consolidated financial
statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. The significant estimates made in the preparation of the accompanying
consolidated financial statements relate to the assessment of the carrying values of accounts receivable, advances to suppliers
and related allowance for doubtful accounts, useful lives of property and equipment, inventory reserve and fair value of its purchase
option derivative liability. Because of the use of estimates inherent in the financial reporting process, actual results could
materially differ from those estimates. Fair value measurements The Company establishes a three-level valuation
hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include
the following: Level 1 – Quoted prices in active markets for identical
assets or liabilities. Level 2 – Inputs other than Level
1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in
markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially
the full term of the assets or liabilities. Level 3 – Unobservable inputs that
are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is
determined based on the lowest level of input that is significant to the fair value measurement. The Company's financial assets
and liabilities, which include financial instruments as defined by FASB ASC 820, include cash, cash equivalents and
restricted cash, financial assets available for sales, trade accounts receivable, notes receivables, other receivable,
accounts payable, other payable, notes payable, long-term loan payable, employee deposits and warrants liability. The carrying
amounts of cash and cash equivalents, restricted cash, accounts receivable, notes receivables, and accounts payable are a
reasonable approximation of fair value due to the short maturities of these instruments (Level 1). The carrying amount of
notes payable approximates fair value based on borrowing rates of similar bank loan currently available to the Company (Level
2) (See Note 16). The carrying amount of Long-term loan payable approximates fair value based on borrowing rates of similar
bank loan currently available to the Company (Level 2) (See Note 17). The carrying amount of the Company's derivative
instruments is recorded at fair value and is determined based on observable inputs that are corroborated by market data
(Level 2) (See Note 21). The carrying amount of the financial assets available for sale is recorded at fair value and is
determined based on unobservable inputs (Level 3) (See Note 4). The carrying amount of the employee deposits is recorded at
fair value and is determined based on unobservable inputs (Level 3) (See Note 22).
(amount in absolute value) Active Market Observable Unobservable Total
Cash, cash equivalents and restricted cash $ 35,368,966 - - $ 35,368,966
Financial assets available for sale - - 163,818 163,818
Trade accounts receivable 9,992,142 - - 9,992,142
Notes receivable 73,494 - - 73,494
Other receivable 5,225,418 - - 5,225,418
Accounts payable 24,904,087 - - 24,904,087
Notes payable - 23,327,972 - 23,327,972
Other payable 1,888,563 - - 1,888,563
Long-term loan payable - 3,089,373 - 3,089,373
Employee Deposits - - 14,699 14,699
Warrants liability - 36,306 - 36,306
Total $ 77,452,670 26,453,651 178,517 $ 104,084,838 Revenue recognition Effective March 31, 2018, the Company began
recognizing revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers
("ASC 606"), using the modified retrospective transition method. The impact of adopting the new revenue standard was
not material to the Company's consolidated financial statements. The core principle of this new revenue standard is that
a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps
are applied to achieve that core principle:
● Step 1: Identify the contract with the customer
● Step 2: Identify the performance obligations in the contract
● Step 3: Determine the transaction price
● Step 4: Allocate the transaction price to the performance obligations in the contract
● Step 5: Recognize revenue when the company satisfies a performance obligation In order to identify the performance obligations
in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised
good or service that is distinct. A performance obligation meets ASC 606's definition of a "distinct" good or
service (or bundle of goods or services) if both of the following criteria are met:
● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct).
● The entity's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the
good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of
consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract
with a customer may include fixed amounts, variable amounts, or both. Variable consideration is included in the transaction price
only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur
when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each
performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation
is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. The Company's revenue is net of value
added tax ("VAT") collected on behalf of the PRC tax authorities with respect to the sales of merchandise. VAT collected
from customers, net of VAT paid for purchases, is recorded as a liability in the accompanying consolidated balance sheets until
it is paid to the relevant PRC tax authorities. Certain contract liabilities primarily
represent the Company's obligation to transfer additional goods or services to a customer for which the Company has received
consideration, for example, membership points. The consideration received remains a contract liability until goods or services
have been provided to the retail customer. The estimated amount based on accrued membership points was deducted from sales revenue. The following is a discussion of the Company's
revenue recognition policies by segment under the new revenue recognition accounting standard: Pharmacy retail sales The physical pharmacies sell prescription
drugs, over-the-counter ("OTC") drugs, traditional Chinese medicine, nutritional supplements, medical devices and sundry
products. Revenue from sales of prescription medicine at drugstores is recognized when the prescription is filled and the customer
picks up and pays for the prescription. Revenue from sales of other merchandise at drugstores is recognized at the point of sale,
which is when a customer pays for and receives the merchandise. Usually the majority merchandise, such as prescription and OTC
drugs, are not refundable after the customers leave the counter. Returns of other products, such as sundry products, are minimal.
Sales of drugs reimbursed by the local government medical insurance agency and receivables from the agency are recognized when
a customer pays for the drugs at a store. The Company based on historical experience, a reserve for potential losses from denial
of reimbursement on certain unqualified drugs is made to the receivables from the government agency. Additionally, several onsite
clinics adjacent to pharmacies provide limited medical services. Revenue from medical services is recognized after the service
has been rendered to a customer. As revenue from medical services is minimal compared to pharmacy retail sales, it is included
as part of the pharmacy retail sales. The Company deduct the membership rewards
directly from the retail revenue, and present such amounts in net sales as opposed to the current reduction of operation expense
classification. Membership rewards, usually membership points, are accumulated by customers based on their historical spending
levels. The Company has determined that there is an additional performance obligation to those customers at the time of the initial
transaction. The customers can then redeem these points against the prices of merchandises they purchase in the future. At the
end of each period, unredeemed membership rewards are reflected as a contract liability. Online pharmacy sales The online pharmacy segment sells various
health products except for prescription drugs. Revenue from online pharmacy sales is recognized when merchandise is shipped to
customers. While most deliveries take one day, certain deliveries may take longer depending on a customer's location. Any
loss caused in a shipment will be reimbursed by the Company's courier company. The Company's sales policy allows for
the return of certain merchandises without reason within seven days after a customer's receipt of the applicable merchandise.
Historically, sales returns seven days after merchandise receipts have been minimal. Wholesale Jiuxin Medicine purchases medicine in
quantity and distributes products primarily to local pharmacies and medical products dealers. Revenue from sales of merchandise
to non-retail customers is recognized when the merchandise is transferred to customers. Historically, sales returns have been
minimal. Disaggregation of Revenue The following tables disaggregate the Company's
revenue by major source in each segment for the three and six months ended September 30, 2020 and 2019:
For the three months ended September 30 2020 2019
Retail drugstores
Prescription drugs $ 5,982,706 $ 6,022,934
OTC drugs 7,617,159 7,463,201
Nutritional supplements 1,664,265 1,676,974
TCM 1,054,378 1,954,500
Sundry products 338,112 290,750
Medical devices 1,273,876 592,914
Total retail revenue $ 17,930,496 $ 18,001,273
Online pharmacy
Prescription drugs $ 1,758,516 $ -
OTC drugs 1,983,034 1,126,655
Nutritional supplements 208,062 136,513
TCM 72,349 21,969
Sundry products 411,494 374,457
Medical devices 913,557 691,670
Total online revenue $ 5,347,012 $ 2,351,264
Drug wholesale
Prescription drugs $ 5,850,267 $ 6,816,035
OTC drugs 1,563,344 1,048,542
Nutritional supplements 27,104 35,048
TCM 78,333 81,130
Sundry products 18,760 5,338
Medical devices 27,229 15,149
Total wholesale revenue $ 7,565,037 $ 8,001,242
Total revenue $ 30,842,545 $ 28,353,779
For the six months ended September 30 2020 2019
Retail drugstores
Prescription drugs $ 13,389,480 $ 11,718,220
OTC drugs 14,435,643 14,703,429
Nutritional supplements 3,012,034 2,908,107
TCM 2,003,390 3,058,550
Sundry products 760,663 588,948
Medical devices 3,139,760 1,759,007
Total retail revenue $ 36,740,970 $ 34,736,261
Online pharmacy
Prescription drugs $ 3,628,159 $ -
OTC drugs 3,305,845 2,151,257
Nutritional supplements 429,093 243,707
TCM 95,548 35,650
Sundry products 958,214 813,193
Medical devices 1,842,987 1,551,062
Total online revenue $ 10,259,846 $ 4,794,869
Drug wholesale
Prescription drugs $ 11,816,415 $ 11,696,526
OTC drugs 2,478,490 2,122,803
Nutritional supplements 86,945 56,739
TCM 107,300 179,958
Sundry products 21,357 11,020
Medical devices 385,534 36,387
Total wholesale revenue $ 14,896,041 $ 14,103,433
Total revenue $ 61,896,857 $ 53,634,563 Contract Balances Contract liabilities primarily represent
the Company's obligation to transfer additional goods or services to a customer for which the Company has received consideration,
for example membership points and membership rewards. The consideration received remains a contract liability until goods or services
have been provided to the retail customer. The following table provides information
about receivables and contract liabilities from contracts with customers:
September 30, March 31,
Trade receivable (included in accounts receivable, net) $ 9,992,142 $ 9,770,656
Contract liabilities (included in accrued expenses) 1,546,126 1,106,982 Restricted cash The Company's restricted cash consists
of cash and long-term deposits in a bank as security for its notes payable. The Company has notes payable outstanding with the
bank and is required to keep certain amounts on deposit that are subject to withdrawal restrictions. The notes payable are generally
short term in nature due to their short maturity period of six to nine months; thus, restricted cash is classified as a current
asset. The following represents a reconciliation
of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in
the Consolidated Condensed Statements of Cash Flows as of September 30, 2020 and March 31, 2020:
September 30, March 31,
Cash and cash equivalents $ 21,646,487 $ 16,176,318
Restricted cash 13,722,479 14,806,288
Cash, cash equivalents and restricted cash $ 35,368,966 $ 30,982,606 Accounts receivable Accounts receivable represents the following:
(1) amounts due from banks relating to retail sales that are paid or settled by the customers' debit or credit cards, (2)
amounts due from government social security bureaus and commercial health insurance programs relating to retail sales of drugs,
prescription medicine, and medical services that are paid or settled by the customers' medical insurance cards, (3) amounts
due from non-bank third party payment instruments such as Alipay and certain e-commerce platforms and (4) amounts due from non-retail
customers for sales of merchandise. Accounts receivable are recorded at net
realizable value consisting of the carrying amount less an allowance for uncollectible accounts, as necessary. In the Company's
retail business, accounts receivable mainly consist of reimbursements due from the government insurance bureaus and commercial
health insurance programs and are usually collected within two or three months. The Company directly writes off delinquent account
balances, which it determines to be uncollectible after confirming with the appropriate bureau or program each month. Additionally,
the Company also makes estimated reserves on related outstanding accounts receivable based on historical trends. In the Company's online pharmacy
business, accounts receivable primarily consist of amounts due from non-bank third party payment instruments such as Alipay and
certain e-commerce platforms. To purchase pharmaceutical products from an e-commerce platforms such as Tmall, customers are required
to submit payment to certain non-bank third party payment instruments, such as Alipay, which, in turn, reimburse the Company within
seven days to a month. Except for customer returns of sold products, the receivables from these payments instruments are rarely
uncollectible. In its wholesale business, the Company
uses the aging method to estimate the allowance for anticipated uncollectible receivable balances. Under the aging method, bad
debt percentages are determined by management, based on historical experience and the current economic climate, are applied
to customers' balances categorized by the number of months the underlying invoices have remained outstanding. At each reporting
period, the allowance balance is adjusted to reflect the amount computed as a result of the aging method. When facts subsequently
become available to indicate that the allowance provided requires an adjustment, a corresponding adjustment is made to the allowance
account as a change in estimate. Advances to suppliers Advances to suppliers consist of prepayments
to its vendors, such as pharmaceutical manufacturers and other distributors. Since the acquisition of Jiuxin Medicine, the Company
have transferred almost all logistics services of its retail drugstores to Jiuxin Medicine. Jiuzhou Pharmacy only directly purchases
certain non-medical products, such as certain nutritional supplements. As a result, almost all advances to suppliers are made by
Jiuxin Medicine. Advances to suppliers for its drug wholesale
business consist of prepayments to its vendors, such as pharmaceutical manufacturers and other distributors. The Company typically
receive products from vendors within three to nine months after making prepayments. The Company continuously monitor delivery
from, and payments to, its vendors while maintaining a provision for estimated credit losses based upon historical experience and
any specific supplier issues, such as discontinuing of inventory supply, that have been identified. Inventories Inventories are stated at the lower of
cost or net realizable value. Cost is determined using the first in first out (FIFO) method. The Company carries out physical inventory
counts on a monthly basis at each store and warehouse location. Herbs that the Company farms are recorded at their cost, which
includes direct costs such as seed selection, fertilizer, labor costs that are spent in growing herbs on the leased farmland, and
indirect costs such as amortization of farmland development cost. All costs are accumulated until the time of harvest and then
allocated to harvested herbs costs when the herbs are sold. The Company periodically reviews its inventory and records write-downs
to inventories for shrinkage losses and damaged merchandise that are identified. The Company provides a reserve for estimated inventory
obsolescence or excess quantities on hand equal to the difference, if any, between the cost of the inventory and its estimated
realizable value. Farmland assets Herbs that the Company farms are recorded
at their cost, which includes direct costs such as seed selection, fertilizer, and labor costs that are spent in growing herbs
on the leased farmland, and indirect costs such as amortization of farmland development costs. Since April 2014, amortization of
farmland development costs has been expensed instead of allocated into inventory due to unpredictable future market value of planted
gingko trees. All related costs described in the above
are accumulated until the time of harvest and then allocated to harvested herbs when they are sold. Property and equipment Property and equipment are stated at cost,
net of accumulated depreciation or amortization. Depreciation is calculated on the straight-line method over the estimated useful
lives of the assets, taking into consideration the assets' estimated residual value. Leasehold improvements are amortized
over the shorter of lease term or remaining lease period of the underlying assets. Following are the estimated useful lives of
the Company's property and equipment:
Estimated Useful Life
Leasehold improvements 3-10 years
Motor vehicles 3-5 years
Office equipment & furniture 3-5 years
Buildings 35 years Maintenance, repairs and minor renewals
are charged to expenses as incurred. Major additions and betterment to property and equipment are capitalized. Intangible assets Intangible assets are acquired individually
or as part of a group of assets, and are initially recorded at their fair value. The cost of a group of assets acquired
in a transaction is allocated to the individual assets based on their relative fair values. The estimated useful lives of the Company's
intangible assets are as follows:
Estimated
Land use rights 50 years
Software 3 years
License Infinite The Company evaluates intangible assets
for impairment whenever events or changes in circumstances indicate that the assets might be impaired. Impairment of long lived assets The Company evaluates long lived tangible
and intangible assets for impairment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable
from its estimated future cash flows. Recoverability is measured by comparing the assets' net book value to the related projected
undiscounted cash flows from these assets, considering a number of factors including past operating results, budgets, economic
projections, market trends and product development cycles. If the net book value of the asset exceeds the related undiscounted
cash flows, the asset is considered impaired, and a second test is performed to measure the amount of impairment loss. There were
no fixed assets and farmland assets impaired for the six months ended September 30, 2020 and 2019. Notes payable During the normal course of business,
the Company regularly issues bank acceptance bills as a payment method to settle outstanding accounts payables with various material
suppliers. The Company records such bank acceptance bills as notes payable. Such notes payable are generally short term in nature
due to their short maturity period of six to nine months. Income taxes The Company accounts for income taxes following
the liability method pursuant to FASB ASC 740 "Income Taxes". Under this method, deferred tax assets and liabilities
are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax
rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance
to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all,
of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in
the period that includes the enactment date. The Company also follows FASB ASC 740,
which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded
in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely
than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the
position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest
benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance
on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.
As of September 30, 2020 and March 31, 2020, the Company did not have a liability for unrecognized tax benefits. It is the Company's
policy to include penalties and interest expense related to income taxes as a component of other expense and interest expense,
respectively, as necessary. The Company's historical tax years will remain open for examination by the local authorities
until the statute of limitations has passed. Under ASC 740-270, entities calculate the
income tax provision for an interim period by distinguishing between elements recognized in the income tax provision through (1)
applying an estimated annual effective tax rate (ETR) to a measure of year-to-date operating results referred to as "ordinary
income (or loss)," and (2) discretely recognizing specific events (referred to as "discrete items") as they occur.
Entities should revise the ETR, as necessary, as of the end of each successive interim period during its fiscal year based on changes
to any of these estimates and judgments. The ETR expected to apply for the full
fiscal year is applied to year-to-date ordinary income (or loss) at the end of each interim period to compute the year-to-date
income tax (or benefit) applicable to ordinary income or loss. Income tax expense (or benefit) related to each discrete item is
individually determined and recognized in the interim period when the discrete item occurs. As a result, the income tax provision
(or benefit) for an interim period might include elements that apply to ordinary income or loss, as well as elements related to
discrete items. Discrete items include significant items that are unusual or that occur infrequently. Determining which items are
unusual or infrequent often requires a significant degree of judgment. Under ASC 740-270-30-36, entities subject
to income taxes in multiple jurisdictions should apply one overall ETR instead of separate ETRs for each jurisdiction when calculating
the interim-period income tax or benefit related to consolidated ordinary income (or loss) for the year-to-date interim period,
except in certain circumstances. The income tax provision or benefit for each interim period is the difference between the year-to-date
amount for the current period and the year-to-date amount for the prior period. Value added tax Sales revenue represents the invoiced value
of goods, net of VAT. All of the Company's products are sold in the PRC and are subject to a VAT on the gross sales price.
The VAT rates range up to 13%, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw
materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT
payable net of payments in the accompanying financial statements. Stock based compensation The Company follows the provisions of FASB
ASC 718, "Compensation — Stock Compensation," which establishes accounting standards for non-employee and employee
stock-based awards. Under the provisions of FASB ASC 718, the fair value of stock issued is used to measure the fair value of services
received as the Company believes such approach is a more reliable method of measuring the fair value of the services. For non-employee
stock-based awards, fair value is measured based on the value of the Company's common stock on the date that the commitment
for performance by the counterparty has been reached or the counterparty's performance is complete. The fair value of the
equity instrument is calculated and then recognized as compensation expense over the requisite performance period. For employee
stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized
as expense with graded vesting on a straight–line basis over the requisite service period for the entire award. Advertising and promotion costs Advertising and promotion costs are expensed
as incurred and amounted to $60,308 and $76,938 for the three months ended September 30, 2020 and 2019, respectively. Advertising
and promotion costs are expensed as incurred and amounted to $137,376 and $156,987 for the six months ended September 30, 2020
and 2019, respectively. Such costs consist primarily of print and promotional materials such as flyers to local communities. Foreign currency translation The Company uses the United States do |
