. PREPAID

EXPENSES AND OTHER

	September 30,
	2018		2017
Deposits for inventory	$	1,366,069	$	29,804
Leashold improvement receivable		1,132,017		-
Prepaid insurance		162,822		91,542
Prepaid maintenance agreement		93,750		187,500
Receivable for stock options exercised		-		252,043
Dues and subscriptions		92,097		247,163
Other		244,646		175,270
	$	3,091,401	$	983,322

Deposits for inventory

Deposits for inventory consisted of cash payments to vendors for inventory to be delivered in the future.

Leasehold improvement receivable

Leasehold improvement receivable represents amounts owed to the Company by the landlord for costs incurred to renovate and prepare the Company’s new facility for use. The lease provided an allowance for tenant improvements of

$1,588,214

(see Note

13,

Commitments and Contingencies, for additional information about this lease). As of

September 30, 2018,

$1,312,017

has

not

been received by the Company.

Prepaid Insurance

Prepaid insurance consisted of premiums paid for health, commercial and corporate insurance. These premiums are amortized on a straight-line basis over the term of the agreements.

Prepaid maintenance agreement

March

31,

2011,

prepaid expenses included

$1,500,000

paid to a

third

party service provider in connection with the Company’s obligations under a sales contract to a foreign military service to provide repair and maintenance services over an

eight

year period for products sold thereunder. The total prepaid expense is being amortized on a straight-line basis at an annual rate of

$187,500

over the

eight

-year contract period to correspond with the revenues for these services, and is being recognized as a component of cost of sales. Accordingly, as of

September

30,

2018,

$93,750

of the total prepayment was classified as a current asset. As of

September 30, 2017,

$187,500

of the total prepayment was classified as a current asset and

$93,750

was classified as noncurrent.