• Filing Date: 2017-02-21
  • Form Type: 10-Q
  • Description: Quarterly report
v3.6.0.2
Note 8 - Commitments and Contingencies
9 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
NOTE 
8
 - COMMITMENTS AND CONTINGENCIES
 
We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on
June
30,
2019.
The Company’s future minimum lease commitment at
December
31,
2016
is as follows: 
 
For the twelve-month period ended December 31,
 
Amount
 
2017
  $
104,625
 
2018
   
52,313
 
    $
156,938
 
 
Rent and real estate tax expense for all facilities for the
nine
months ended
December
31,
2016
and
2015
was approximately
$67,000
and
$63,000,
respectively. 
 
On
August
21,
2008,
the Company entered into a note payable with a commercial bank in the amount of
$200,000.
This note bears interest at a rate of
2%
above the interest rate for the Company’s savings account at this bank. Interest rates at
December
31,
2016
and
2015
were
2.15%
for each year. The note is secured by cash on deposit with the institution, which is classified as restricted cash. Amounts outstanding under the note are payable on demand and interest is payable monthly. The balance of this note as of
December
31,
2016,
was
$78,966.
 
On
December
2,
2016,
the Company entered into a capital lease agreement with a commercial bank in the amount of
$85,680,
including
$6,930
in deferred interest, for the purchase of certain fixed assets. The lease has a term of
forty
-
eight
(48)
months and is payable in
forty
-
eight
equal installments of
$1,773.
The balance of this obligation as of
December
31,
2016,
was
$77,998.
 
On
December
2,
2016,
the Company entered into a capital lease agreement with a commercial bank in the amount of
$54,710,
including
$4,710
in deferred interest, for the purchase of certain fixed assets. The lease has a term of
forty
-
eight
(48)
months and is payable in
forty
-
eight
equal installments of
$1,128.
The balance of this obligation as of
December
31,
2016,
was
$48,070.