Lease and Commitments

6 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Lease and Commitments

NOTE 4 – LEASE AND COMMITMENTS

Rent expense for the three and six months ended September 30, 2019 was $13,434 and $24,245, respectively. Rent expense for the three and six months ended September 30, 2018 was $25,807 and $40,414, respectively.

On July 2^nd, 2018 the Company gave its manufacturing contractor in Rochester, MN a 90-day notice to cancel the lease and agreement, which it had the right to do so, under which the Company was renting manufacturing and office space; while the Company has yet to recognize any expense directly related to this lease termination through the date of this filing besides approximately $2,000 in moving and labor costs. Subsequently, the Company entered into an one-year agreement on July 13, 2018 with a 60-day notice of termination clause for 1,000 square feet of manufacturing and office space in White Bear Lake, MN.

The Company entered into an eighty-four-month lease for 3,577 square feet of newly constructed office, laboratory and warehouse space located in Edina, Minnesota on May 3, 2017. The base rent is $2,078 per month and the Company is responsible for its proportional share of common space expenses, property taxes, and building insurance. This lease is terminable by the landlord if damage causes the property to no longer be utilized as an integrated whole and by the Company if damage causes the facility to be unusable for a period of 45 days.

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of September 30, 2019:

Year Ended March 31,
2020	$	12,468
2021		24,936
2022		24,936
2023		24,936
2024		10,390
	$	97,666

In compliance with ASC 842 the Company adopted new guidance in relation to lease accounting on April 1, 2019 whereby we recognized operating lease right-to-use assets and corresponding and equal operating lease liabilities. As of September 30, 2019, planned future base rent lease payments total $97,666, which has been discounted to $95,063 using the 52-week treasury bill coupon equivalent discount rate of 2.18% and a present value model. As of September 30, 2019, the Company only had one operating lease so that the weighted average remaining lease term and weighted average discount rate are approximately 4 years and 2.18%, respectively.

	September 30, 2019
Present value of future base rent lease payments	$	95,063
Base rent payments included in prepaid expenses		-
Present value of future base rent lease payments – net	$	95,063

 As of September 30, 2019, the present value of future base rent lease payments – net is classified between current and non-current assets and liabilities as follows:

	September 30, 2019
Operating lease right-of-use asset	$	95,063
Total operating lease assets		95,063
Operating lease current liability		24,655
Operating lease other liability		70,408
Total operating lease liabilities	$	95,063

Pursuant to a lease wherein our subsidiary, Gel-Del Technologies, Inc., was the lessee until the lease’s termination in 2017, the Company owes approximately $330,000 to the lessor as of September 30, 2019; this amount is included in accounts payable.