Note 5 - Short-term Contract Obligation

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Short-term Debt [Text Block]

5. SHORT-TERM CONTRACT OBLIGATION

On

November 30, 2018,

the Company completed the purchase of a

six

-acre production and research facility from Cellana LLC (“Cellana”) under a purchase agreement that was signed

August 31, 2018.

In accordance with the terms of the

third

amendment to the asset purchase agreement, the Company acquired the assets for

$495,000

with a cash down payment of

$100,000

leaving a short-term obligation of

$395,000

on the asset purchase.

The short-term obligation is comprised of

two

separate loans in the principal amount of

$180,000

and

$215,000.

The

first

loan of

$180,000

bore an interest rate of

6.25%

and was payable in

four

monthly installments of principal and interest. The loan commenced on

December 1, 2018

and matured on

July 15, 2019.

The principal amounts outstanding at

March 31, 2020

and

2019

were

$0

and

$137,000,

respectively.

The

second

loan had a principal amount of

$215,000

and was a non-interest bearing loan that was payable in

twelve

monthly installments. The loan commenced on

December 1, 2018

and matured on

October 15, 2019.

This contract contains a hold back of

$38,000

pending resolution of certain closing items by the seller, which is the balance outstanding at

March 31, 2020.

The principal amount outstanding at

March 31, 2019

was

$148,000.