Note 6 - Lease Agreements |
3 Months Ended | |||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||
| Notes | ||||||||||||||||||||||
| Note 6 - Lease Agreements | Note 6 Lease Agreements:
Capital Lease Agreements
Capital lease agreements between the Company and related parties for vehicles (disclosed in Note 4) require monthly payments totaling $1,066 (ranging from $253 to $461), including interest (ranging from 4.0% to 4.75%), over 5-year terms expiring between April 2019 and July 2020.
Operating Lease Agreements
The Company leases office, retail shop and warehouse facilities under operating leases from a related party (disclosed in Note 5) which require monthly payments of $1,500 and expire in December 2018. Rent expense under all operating leases was $5,150 for the period ended June 30, 2018 and $35,583 for the year ended March 31, 2018.
Leases Lessors
The Companys entertainment segment leases space to a Save-A-Lot grocery store at the Indianapolis theater location. Save-A-Lot corporate assumed the lease in March 2014 for seven years with three five-year options. Monthly rent charged to the tenant is $13,375 per month. Total rental income relating to this lease from the date of the merger to June 30, 2018 was $3,518 and $0 for the year ended March 31, 2018. The rental income is included in other income in the accompanying consolidated statements of operations.
The following is a schedule of future minimum rentals under the lease:
The initial lease term ends September 30, 2021. Save-A-Lot reserves the right to exercise three five-year options, which would extend the maturity date to September 30, 2036. |