XML 39 R15.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies

3 Months Ended

Aug. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Note 9 – Commitments and Contingencies

As discussed in Note 2 above, the Company adopted ASU No. 2016-02, Leases on May 1, 2019, which require lessees to report on their balance sheets a right-of-use asset and a lease liability in connection with most lease agreements classified as operating leases under the prior guidance. The Company has a lease agreement in connection with its office and warehouse facility in California under operating leases, with a remaining lease term of less than 1 year, expiring in October 2019. Rent expense amounted to $23,666 and $25,066 for the three months ended August 31, 2019 and 2018, respectively. Future minimum rental payments required under this operating lease are as follows:

	Total		1 Year		2-3 Year		Thereafter
Operating Lease	$	14,635	$	14,635	$	—	$	—
Total	$	14,635	$	14,635	$	—	$	—

In November 2017, the Company had executed an Agreement with a third party located in Hong Kong, China, whereby the third party shall promote, market, distribute and resell the Company’s products to end-user consumers through direct online sales or third party e-commerce platforms in the following territories: Hong Kong, Macau, and the People’s Republic of China. The term of the agreement was for 36 months from the effective date. Parties shall have the right to terminate this agreement, with or without cause, upon 60 days prior written notice. For services provided in connection with this agreement, the Company shall pay the third party 16.5% of the gross revenues generated from sales channels initiated and subsequently maintained by the third party or $3,300 per month, whichever is greater. In February 2018, the Company terminated this Agreement.