Note 8 - Commitments and Contingencies	9 Months Ended
Dec. 31, 2019
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 8 – Commitments and Contingencies On September 18, 2017 GB Sciences finalized its agreement with Louisiana State University (“LSU”) AgCenter to be the sole operator of the LSU’s medical marijuana program. The LSU Board of Supervisors entered into a five -year agreement that has an option to renew for two additional five -year terms with GB Sciences. The contract includes the Company’s commitment to make an annual research investments of $500,000 to the LSU AgCenter. The Company retained its 50% interest in the research relationship with LSU after the sale of its membership interest in GB Sciences Louisiana, LLC (Note 10 ), and accordingly remains obligated for $250,000 of the $500,000 annual research investment for three years, or a total commitment of $750,000. The research investment is paid annually in September and amortized over a one -year period. The monetary contributions will be used to conduct research on plant varieties, compounds, extraction techniques and delivery methods that could generate additional revenue through discoveries that are subject to intellectual property rights, of which AgCenter would retain 50% of those rights with the other 50% retained 25% each by the Company and by GB Sciences Louisiana, LLC. On December 6, 2018, the Company entered into an agreement for business advisory and consulting services. In consideration for the services, the Company issued warrants to purchase 2 million shares of the Company’s common stock at $0.1125 per share. The Company valued the warrants at $244,000 using the Black-Scholes valuation model. The fair value of the warrants was recognized as consulting expense over the term of the agreement. The company recorded $162,667 in expense related to the warrants for the nine months ended December 31, 2019 . The Company also agreed to pay the consultant a $10,000 monthly fee for 12 months and to issue 4 million restricted shares of the Company’s common stock. The Company issued 2 million shares on the date of the contract, with the remaining 2 million due nine months after the date of the agreement. On June 6, 2019, the Company entered into a Cancellation and Settlement with the consultant and terminated the December 6, 2018 agreement. In consideration for terminating the agreement, the Company will pay $135,000 as a one -time cancellation fee and will not issue the remaining two million shares due under the agreement. This amount is accrued in accounts payable as of December 31, 2019 . On October 1, 2019, the Company entered into a new agreement for business advisory and consulting services. In connection with the agreement, the Company issued 2 million shares of its common stock and agreed to pay a monthly service fee of $50,000 beginning December 1, 2019, plus a quarterly stock fee of 2 million shares 90, 180, and 270 days after the agreement. The company recorded $180,000 expense related to the common stock payments and $50,000 expense related to the cash payments, which is accrued in accounts payable at December 31, 2019 . During the year ended March 31, 2019 , the Company recorded a $200,000 charge related to seizure of cash by local law enforcement during a routine traffic stop while transporting the cash to one of our subsidiaries. The charge was recorded in other expense as the Company believed it was more likely than not that the cash would not be returned. After appealing the seizure of the cash through appropriate channels, the cash was returned to the Company on September 6, 2019, and the Company recorded other income on that date. From time to time, the Company may become involved in certain legal proceedings and claims which arise in the ordinary course of business. In management’s opinion, based on consultations with outside counsel, the results of any of these ordinary course matters, individually and in the aggregate, are not expected to have a material effect on our results of operations, financial condition, or cash flows. As more information becomes available, if management should determine that an unfavorable outcome is probable on such a claim and that the amount of such probable loss that it will incur on that claim is reasonably estimable, the Company would record a reserve for the claim in question. If and when the Company records such a reserve, it could be material and could adversely impact its results of operations, financial condition, and cash flows.

Note

– Commitments and Contingencies

September 18, 2017

GB Sciences finalized its agreement with Louisiana State University (“LSU”) AgCenter to be the sole operator of the LSU’s medical marijuana program. The LSU Board of Supervisors entered into a

five

-year agreement that has an option to renew for

two

additional

five

-year terms with GB Sciences.

The contract includes the Company’s commitment to make an annual research investments of

$500,000

to the LSU AgCenter. The Company retained its

50%

interest in the research relationship with LSU after the sale of its membership interest in GB Sciences Louisiana, LLC (Note

), and accordingly remains obligated for

$250,000

of the

$500,000

annual research investment for

three

years, or a total commitment of

$750,000.

The research investment is paid annually in

September

and amortized over a

one

-year period.

The monetary contributions will be used to conduct research on plant varieties, compounds, extraction techniques and delivery methods that could generate additional revenue through discoveries that are subject to intellectual property rights, of which AgCenter would retain

50%

of those rights with the other

50%

retained

25%

each by the Company and by GB Sciences Louisiana, LLC.

December 6, 2018,

the Company entered into an agreement for business advisory and consulting services. In consideration for the services, the Company issued warrants to purchase

million shares of the Company’s common stock at

$0.1125

per share. The Company valued the warrants at

$244,000

using the Black-Scholes valuation model. The fair value of the warrants was recognized as consulting expense over the term of the agreement. The company recorded

$162,667

in expense related to the warrants for the

nine

months ended

December 31, 2019

. The Company also agreed to pay the consultant a

$10,000

monthly fee for

months and to issue

million restricted shares of the Company’s common stock. The Company issued

million shares on the date of the contract, with the remaining

million due

nine

months after the date of the agreement.

June 6, 2019,

the Company entered into a Cancellation and Settlement with the consultant and terminated the

December 6, 2018

agreement. In consideration for terminating the agreement, the Company will pay

$135,000

as a

one

-time cancellation fee and will

not

issue the remaining

two million

shares due under the agreement. This amount is accrued in accounts payable as of

December 31, 2019

October 1, 2019,

the Company entered into a new agreement for business advisory and consulting services. In connection with the agreement, the Company issued

million shares of its common stock and agreed to pay a monthly service fee of

$50,000

beginning

December 1, 2019,

plus a quarterly stock fee of

million shares

90,

180,

and

270

days after the agreement. The company recorded

$180,000

expense related to the common stock payments and

$50,000

expense related to the cash payments, which is accrued in accounts payable at

December 31, 2019

During the year ended

March 31, 2019

, the Company recorded a

$200,000

charge related to seizure of cash by local law enforcement during a routine traffic stop while transporting the cash to

one

of our subsidiaries. The charge was recorded in other expense as the Company believed it was more likely than

not

that the cash would

not

be returned. After appealing the seizure of the cash through appropriate channels, the cash was returned to the Company on

September 6, 2019,

and the Company recorded other income on that date.

From time to time, the Company

may

become involved in certain legal proceedings and claims which arise in the ordinary course of business. In management’s opinion, based on consultations with outside counsel, the results of any of these ordinary course matters, individually and in the aggregate, are

not

expected to have a material effect on our results of operations, financial condition, or cash flows. As more information becomes available, if management should determine that an unfavorable outcome is probable on such a claim and that the amount of such probable loss that it will incur on that claim is reasonably estimable, the Company would record a reserve for the claim in question. If and when the Company records such a reserve, it could be material and could adversely impact its results of operations, financial condition, and cash flows.