Note E - Leases

6 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

 NOTE E — LEASES

The Company’s lease of its office space in Longview, Texas is the only operating lease included in the Company's right-of-use ("ROU") asset and lease liability. The lease calls for monthly rent payments of $4,878 and expires 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 for the three and six months ended September 30, 2021 and 2020 are as follows:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Finance lease – amortization of ROU asset	$	25,610	$	25,121	$	51,097	$	50,121
Finance lease – interest on lease liability		1,613		2,102		3,349		4,325
Operating lease expense		14,634		14,634		29,268		27,018
	$	41,857	$	41,857	$	83,714	$	81,464

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of September 30, 2021 and March 31, 2021:

	September 30, 2021		March 31, 2021		Balance Sheet Classification
Assets
Operating lease right-of-use asset	$	137,967	$	4,850	Other assets
Finance lease right-of-use asset		468,914		481,880	Property, plant & equipment
Total right-of-use assets	$	606,881	$	486,730
Liabilities
Operating lease liability, current	$	50,477	$	4,850	Accrued expenses
Finance lease liability, current		103,684		102,689	Current portion of finance lease
Operating lease liability, non-current		87,490		—	Other non-current liabilities
Finance lease liability, non-current		213,466		265,557	Other non-current liabilities
Total lease liabilities	$	455,117	$	373,096

As of September 30, 2021, the weighted-average remaining lease term was 2.6 years for operating leases and 3.0 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 September 30, 2021 were as follows:

	Operating Leases			Finance Leases
Fiscal 2022 (remainder of fiscal year)		29,268			54,446
Fiscal 2023		58,536			108,888
Fiscal 2024		58,536			108,888
Fiscal 2025		4,878			54,445
Fiscal 2026		—			—
Total undiscounted lease payments	$	151,218		$	326,667
Less: imputed interest		(13,251	)		(9,517	)
Present value of lease liability	$	137,967		$	317,150