Commitments and Contingencies

12 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 7 - 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 were held at a bonded warehouse in Blaine, Washington. Management subsequently provided the CPB with valid licensing agreements that were active relating to these particular shipments and in February 2017, the CPB released the goods from custody and closed the matter. Prior to the year ended March 31, 2017, 568 of the units had been returned to our California warehouse with the remaining 1,142 units returned in April 2017.

OPERATING LEASES

The Company has operating lease agreements for office and warehouse facilities in Fort Lauderdale, Florida; Ontario, California; and Macau expiring at varying dates. The lease for our office facilities in Fort Lauderdale, Florida expired on December 31, 2016. On August 31, 2016 we signed a lease extension that included the current occupied space as well as additional office space adjacent to our current space. The lease extension will commence upon completion of tenant improvements and will terminate 78 months after commencement. During the tenant improvement construction period the rent will remain the same as the expired lease and will be paid on a month-to-month basis. Rent expense for the years ended March 31, 2017, 2016 and 2015 was $641,346, $623,659 and $623,589 respectively. In addition, the Company maintains various warehouse equipment and office equipment operating leases. Future minimum lease payments under property and equipment leases with terms exceeding one year as of March 31, 2017 are as follows:

	Operating Leases
For fiscal year ending
March 31,
2018	$	503,825
2019		519,518
2020		524,272
2021		218,446
	$	1,766,061

The future minimum lease payments do not include payments related to the 78 month lease extension due to the contingent commencement date.