12. Lease

9 Months Ended

Jan. 31, 2020

Notes

12. Lease

NOTE 12:  LEASE

On October 16, 2018 the Company signed a three year lease for the Company’s warehouse space effective on November 1, 2018 through October 31, 2021. The lease is for approximately 4,700 square feet of warehouse space with a gross monthly rental cost including common area charges of $3,250.

The yearly rental obligations including the lease agreements are as follows:

Fiscal Year
2020	$	9,750
2021	$	39,000
2022		19,500
Total	$	68,250

Under the new standards the lease has been determined to be an operating lease with a fair value was determined to be $91,474 which is presented in the balance sheet as an asset labeled “right to use lease” offset by a liability  labeled “lease liability”. The rate was determined as a fair value of the lease over a 30 month period using a 5% interest rate for the present value calculation. During the nine months ended January 31, 2020 the asset and liability were both reduced by $28,649.