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Note 4 - Leases | 12 Months Ended
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Mar. 31, 2020
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | 4. LEASES The Company adopted ASU 2016 - 02, Leases (“ASC 842” ) on April 1, 2019 using the optional transition method under which the new standard is applied only to the most current period presented and the cumulative effect of applying the new standard to existing lease agreements is recognized at the date of initial application. Under this adoption method, reporting periods beginning after April 1, 2019 are presented under the new standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The adoption of ASC 842 resulted in the recording of initial ROU asset and lease liabilities of approximately $63,000 at April 1, 2019. The Company’s lease of its office space in Longview, Texas is the only operating lease included in the ROU asset and lease liability. The lease calls for monthly rent payments of $4,128 and expires on April 30, 2021. The Company’s other operating leases for items such as IT equipment and storage space are either short-term in nature or immaterial. In October 2019, the Company received a new heavy-duty forklift under a 5 -year finance lease arrangement with a financed amount of $518,616 and a monthly payment of $9,074. The components of expense related to leases were as follows for the twelve months ended March 31, 2020:
|  | Twelve Months Ended March 31, 2020 |
Finance lease – amortization of ROU asset |  | $ | 49,640 |
Finance lease – interest on lease liability |  |  | 4,806 |
Operating lease expense |  |  | 36,936 |
|  | $ | 91,382 |
Rental expense for operating leases classified under the previous accounting standard, Accounting Standards Codification Topic 840, for the twelve months ended March 31, 2019 was $32,736. The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of March 31, 2020:
|  | March 31, 20 20 |  | Balance Sheet Classification
Assets |  |  |  |  |
Operating lease right-of-use asset |  | $ | 51,535 |  | Other assets
Finance lease right-of-use asset |  | $ | 507,812 |  | Property, plant & equipment
Total right-of-use assets |  | $ | 559,347 |  |
Liabilities |  |  |  |  |
Operating lease liability, current |  | $ | 47,431 |  | Accrued expenses
Finance lease liability, current |  |  | 100,728 |  | Current portion of finance lease
Operating lease liability, non-current |  |  | 4,104 |  | Other non-current liabilities
Finance lease liability, non-current |  |  | 368,248 |  | Other non-current liabilities
Total lease liabilities |  | $ | 520,511 |  |
As of March 31, 2020, the weighted-average remaining lease term was 1 year for operating leases and 4.5 years for finance leases. The weighted average discount rate was 7% for operating leases and 1.9% for finance leases. Maturities of lease liabilities as of March 31, 2020 were as follows:
|  | Operating Leases |  |  | Finance Leases |
Fiscal 2021 |  |  | 49,536 |  |  |  | 108,888 |
Fiscal 2022 |  |  | 4,128 |  |  |  | 108,888 |
Fiscal 2023 |  |  | — |  |  |  | 108,888 |
Fiscal 2024 |  |  | — |  |  |  | 108,888 |
Fiscal 2025 |  |  | — |  |  |  | 54,444 |
Total undiscounted lease payments |  | $ | 53,664 |  |  | $ | 489,996 |
Less: imputed interest |  |  | (2,129 | ) |  |  | (21,020 | )
Present value of lease liability |  | $ | 51,535 |  |  | $ | 468,976 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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