Note 4 - Current Deposits

9 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Current Deposits [Text Block]

NOTE

4

– CURRENT DEPOSITS

During the year ended

March 31, 2019,

the Company made total advances to a

third

-party manufacturer of

$402,000

in exchange for a discount from the negotiated purchase price of future inventory units. The deposits allowed the Company to receive a discount of approximately

$2.46

per unit from the originally agreed upon purchase price on the

first

163,415

individual units of inventory manufactured when purchases begin. 

During the

nine

months ended

December 31, 2019,

the Company entered into a legal dispute with the

third

-party manufacturer. Among other claims, the Company is seeking a return of the deposits made totaling

$402,000.

During the

three

months ended

December 31, 2019,

the

third

-party manufacturer’s motion to compel arbitration with the Company was denied and the attorney of record filed a motion to withdraw their representation leaving the

third

party manufacturer without legal representation as of

December 31, 2019.

While the dispute is unresolved as of the date the financial statements were issued, the Company, through discussions with outside counsel, believes the deposits totaling

$402,000

are likely to be returned to the Company. As such,

no

reserve against the deposits has been recorded as of

December 31, 2019

or

March 31, 2019.