Commitments and Contingencies

9 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 8 - COMMITMENTS AND CONTINGENCIES

LEGAL MATTERS

In November and December 2016, U.S. Customs and Border Protection (CBP) issued Notice of Seizure letters relating to three shipments of one of the Company’s products purchased from a Canadian distributor with a total value of approximately $193,000. The letter addressed 1,710 units of certain merchandise at the U.S. Port of Entry in Blaine, Washington, all of which are currently held at a bonded warehouse in Blaine, Washington. Management believes that this seizure is related to these particular shipments only and that once the Company provides proof that these goods comply with specific trademark licensing guidelines that the goods will be released without any further consequences to future purchases of inventory.

OPERATING LEASES

The Company is committed to various operating lease agreements for office and warehouse facilities in Fort Lauderdale, Florida; Ontario, California; and Macau, PRC; expiring at varying dates. Rent expense for the three months ended December 31, 2016 and 2015 was $159,259 and $156,652, respectively. Rent expense for the nine months ended December 31, 2016 and 2015 was $479,696 and $466,837, respectively. The operating lease for the office facility in Fort Lauderdale, Florida expired on December 31, 2016. The original lease has been amended for an additional 78 months and includes expansion to adjacent office space of an additional approximately 2,500 square feet for a total of approximately 6,500 square feet to be occupied. The lease is scheduled to commence upon completion of tenant improvements and in the interim the company will continue to occupy the current space with rental payments on a month to month basis.

In addition, the Company maintains various warehouse equipment and computer equipment operating leases. Future minimum lease payments under property and equipment leases with terms exceeding one year as of December 31, 2016 are as follows:

	Operating Leases
For period ending December 31,
2017	$	503,826
2018		514,406
2019		524,272
2020		349,514
	$	1,892,018