v3.10.0.1
Note 6 - Lease Agreements
3 Months Ended
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 Company’s 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:

 

Period ending June 30,

 

 

2019

$

160,464

2020

 

160,464

2021

 

160,464

2022

 

40,116

 

 

 

 

$

521,508

 

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.