Operating Lease Liability

9 Months Ended

Dec. 31, 2022

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

Note 11 – Operating Lease Liability

The Company leases its facility in East Rutherford, NJ with monthly payments of $21,237 until August 2025. Thereafter, monthly payments are $23,083 for the balance of the 8 year lease agreement expiring August 2029.

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings. The Company used a discount rate of 3.90% for both December 31, 2022 and March 31, 2022, respectively.

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of December 31, 2022:

Remaining payments 2023	$	63,710
2024		254,840
2025		254,840
2026		267,767
2027		277,000
Thereafter		669,416
Total undiscounted future minimum lease payments		1,787,573
Less: Difference between undiscounted lease payments and discounted lease liabilities		(212,196	)
Present value of net minimum lease payments		1,575,377
Less current portion		(200,148	)
Operating lease liabilities – long-term	$	1,375,229

Total rent expense for the three and nine months ended December 31, 2022, was $96,233 and $304,736, respectively, as compared to $100,967 and $288,117 for the three and nine months ended December 31, 2021, respectively.