NOTE

–

OPERATING LEASES

March 23, 2017,

the Company entered into a lease agreement for the rent of warehouse space that terminates on

April 30, 2022

which was amended on

May 20, 2017.

Additionally, on

March 12, 2019,

the Company entered into an additional lease for the rent of warehouse space that terminates on

March 31, 2022.

April 1, 2019,

the Company recorded a right of use asset and operating lease liability totaling

$207,359

using an imputed interest rate of

25%

on its operating leases, equal to the approximate weighted average interest rate imputed on the Company’s existing capital leases. During the

nine

months ended

December 31, 2019,

the Company made total principal payments on operating leases of

$36,593.

There was a total operating lease liability of

$170,766

as of

December 31, 2019

of which

$61,886

was current and

$108,880

was long term.

The leases require future minimum payments as shown below:

Year ending March 31,
2020	$	26,128
2021		98,207
2022		99,725
2023		4,321
Total payments		228,381
Less: imputed interest		(57,615	)
Operating lease liability, total	$	170,766

November 5, 2018,

the Company entered into an agreement to sublet a portion of its office space on a month to month basis. The sublease will continue on a month to month basis until the sublessor provides notice to execute a long term lease or will have the option to assume the Company’s lease. The sublease requires monthly rental payments of

$5,700

with the

first

month being prorated accordingly.

May 8, 2019,

the Company entered into a separate sublease agreement whereby it will sublet a portion of its space for a period of

twelve

months commencing on

May 1, 2019.

The sublease requires a prorated amount of rent total

$1,800

for

May 2019

followed by

eleven

monthly payments of

$4,100

through

April 2020.

The Company records sublease payments received as other income in the statement of operations resulting in other income of

$12,300

and

$33,600

being recognized during the

three

and

nine

months ended

December 31, 2019.

The Company has

not

been released from its obligations under the master lease and accounts for rental income from subleases on a straight line basis monthly.