Note 11 - Capital Leases Payable

9 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

NOTE

1

1

– CAPITAL LEASES PAYABLE

The Company accounts for capital leases in accordance with ASC

842.

During the year ended

March 31, 2019,

the Company entered into

seven

separate long-term leases for equipment that contain a

$1

buyout option upon lease termination as well as others that contain bargain purchase option upon the lease termination. The Company determined these were capital leases based on the minimum buy out price and capitalized the net present value of the leases which totaled

$1,162,240

as equipment. The leases require total monthly payments of

$34,171.

As of

December 31, 2019,

there was a total of

$1,046,115

of future payments due through

June 2023

of which

$287,972

are financing charges leaving a total principal balance of

$758,143.

Of the total principal balance due,

$301,162

was current and

$456,981

was long term as of

December 31, 2019.

Future annual payments required under the capital leases through termination are as follows:

	Principal		Interest		Total
Year ended March 31,
2020	$	115,731	$	90,693	$	206,424
2021		268,302		137,008		405,310
2022		259,304		50,164		309,468
2023		107,662		9,864		117,526
2024		7,144		243		7,387
Total	$	758,143	$	287,972	$	1,046,115