Note 4 - Leases

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

4.

   LEASES

The Company adopted ASU

2016

-

02,

 Leases (“ASC

842”

) on

April 1, 2019

using the optional transition method under which the new standard is applied only to the most current period presented and the cumulative effect of applying the new standard to existing lease agreements is recognized at the date of initial application. Under this adoption method, reporting periods beginning after

April 1, 2019

are presented under the new standard, while prior period amounts are

not

adjusted and continue to be reported under the accounting standards in effect for the prior period. The adoption of ASC

842

resulted in the recording of initial ROU asset and lease liabilities of approximately

$63,000

at

April 1, 2019.

The Company's lease of its office space in Longview, Texas is the only operating lease included in the ROU asset and lease liability. The lease calls for monthly rent payments of

$4,878

an

d expired 

on

April 30, 2021.

In

April 2021,

the lease was renewed for a

three

year term with expiration on

April 30, 2024.

The Company's other operating leases for items such as IT equipment and storage space are either short-term in nature or immaterial.

In

October 2019,

the Company received a new heavy-duty forklift under a

5

-year finance lease arrangement with a financed amount of

$518,616

and a monthly payment of

$9,074.

The components of expense related to leases were as follows for the

twelve

months ende

d

March 31, 2021

 and

March 31, 2020

,

	Twelve Months		Twelve Months
	Ended March 31,		Ended March 31,
	2021		2020
Finance lease – amortization of ROU asset	$	100,728	$	49,640
Finance lease – interest on lease liability		8,164		4,806
Operating lease expense		56,286		36,936
	$	165,178	$	91,382

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as o

f

March 31, 2021

 and

March 31, 2020

:

	March 31, 2021		March 31, 2020		Balance Sheet Classification
Assets
Operating lease right-of-use asset	$	4,850	$	51,535	Other assets
Finance lease right-of-use asset		481,880		507,812	Property, plant & equipment
Total right-of-use assets	$	486,730	$	559,347
Liabilities
Operating lease liability, current	$	4,850	$	47,431	Accrued expenses
Finance lease liability, current		102,689		100,728	Current portion of financing lease
Operating lease liability, non-current		—		4,104	Other non-current liabilities
Finance lease liability, non-current		265,557		368,248	Other non-current liabilities
Total lease liabilities	$	373,096	$	520,511

As

of

March 31, 2021

, t

he weighted-average remaining lease term was

0.1

year for operating leases and

3.5

years for finance leases. The weighted average discount rate was

7%

for operating leases and

1.9%

for finance leases.

Maturities of lease liabilities as

of

March 31, 2021

were as follows:

	Operating			Finance
	Leases			Leases
Fiscal 2022		4,878			108,892
Fiscal 2023		—			108,892
Fiscal 2024		—			108,892
Fiscal 2025		—			54,445
Fiscal 2026		—			—
Total undiscounted lease payments	$	4,878		$	381,121
Less: imputed interest		(28	)		(12,875	)
Present value of lease liability	$	4,850		$	368,246