. PREPAID

EXPENSES AND OTHER

	September 30,
	2019		2018
Deposits for inventory	$	1,064,640	$	1,366,069
Leashold improvement receivable		-		1,132,017
Prepaid insurance		194,285		162,822
Prepaid rent		87,782		-
Prepaid maintenance agreement		-		93,750
Dues and subscriptions		88,031		92,097
Other		347,099		244,646
	$	1,781,837	$	3,091,401

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.

Refer to Note

13,

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

September 30, 2019,

the Company has received the full tenant improvement allowance.

Prepaid

Rent

Prepaid rent consists of payments made in advance for the Company’s facility lease.

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 was 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 was recognized as a component of cost of sales. The amortization of the prepaid maintenance agreement was completed during the period ended

March 31, 2019.

As of

September 30, 2018,

$93,750

of the total prepayment was classified as a current asset.