v3.21.2

LEASES | 3 Months Ended
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Jun. 30, 2021
Leases [Abstract] |
LEASES | NOTE 12 –LEASES Kokomo lease On October 1, 2020, the Company, under its subsidiary ONE More Gym LLC, entered into a facilities lease (“Kokomo Lease”) for 25,000 square feet in Kokomo, Indiana. The initial lease term is for five years and the lease commencement date is October 1, 2020. The monthly lease payments are $7,291.66 in year 1, $7,656.25 in year 2, $8,039.06 in year 3, and $8,441.02 in years 4 and 5. Valparaiso Lease The Company leases 11,676 square feet of office space located at 1805 E. Lincolnway, Valparaiso, Indiana 46383. The Company assumed the lease (“Valparaiso Lease”) when it acquired CFit Indiana Inc. on October 6, 2020. The monthly lease payments are $7,624.50 and the lease expires on December 31, 2023. Merrill Lease In connection with the acquisition of CFit Indiana Inc. on October 6, 2020, the Company acquired a facilities lease for 15,000 square feet at 6055N. Broadway Ave., Merrillville, Indiana. The monthly lease payments are $11,189.50 and the lease expires on February 28, 2026. Tuscaloosa Lease In connection with the acquisition of Hillcrest Fitness LLC on December 1, 2020, the Company acquired a facilities lease at 6551 Highway 69 South, Tuscaloosa, AL 35405. The monthly lease payments are $6,000 and the lease expires on March 6, 2024. Birmingham Lease In connection with the acquisition of Club Fitness LLC on April 1, 2021, the Company acquired a facilities lease at 2520 Moody Parkway, Mood, AL 35004. The monthly lease payments are $6,000 and the lease expires on April 30, 2026. Operating lease right-of-use asset and liability are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is our incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of our leases is not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Since the common area maintenance expenses are expenses that do not depend on an index or rate, they are excluded from the measurement of the lease liability and recognized in other general and administrative expenses on the statements of operations. Right-of-use asset is summarized below:
Summary of right-of-use asset |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | June 30, 2021 |
|  | Kokomo Lease |  |  | Valparaiso Lease |  |  | Merrill Lease |  |  | Tuscaloosa Lease |  |  | Birmingham Lease |  |  | Total |
Office lease |  | $ | 375,483 |  |  | $ | 374,360 |  |  | $ | 701,405 |  |  | $ | 222,087 |  |  | $ | 284,745 |  |  | $ | 1,958,080 |
Less: accumulated amortization |  |  | (45,442 | ) |  |  | (75,965 | ) |  |  | (37,686 | ) |  |  | (25,726 | ) |  |  | (7,385 | ) |  |  | (192,204 | )
Right-of-use asset, net |  | $ | 330,041 |  |  | $ | 298,395 |  |  | $ | 663,719 |  |  | $ | 196,361 |  |  | $ | 277,360 |  |  | $ | 1,765,876 |
Operating lease liability is summarized below:
Summary of operating lease liability |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | June 30, 2021 |
|  | Kokomo Lease |  |  | Valparaiso Lease |  |  | Merrill Lease |  |  | Tuscaloosa Lease |  |  | Birmingham Lease |  |  | Total |
Office lease |  | $ | 336,180 |  |  | $ | 298,395 |  |  | $ | 689,785 |  |  | $ | 196,361 |  |  | $ | 277,361 |  |  | $ | 1,798,082 |
Less: current portion |  |  | (60,606 | ) |  |  | (110,528 | ) |  |  | (68,402 | ) |  |  | (55,460 | ) |  |  | (46,978 | ) |  |  | (341,974 | )
Long term portion |  | $ | 275,574 |  |  | $ | 187,867 |  |  | $ | 621,383 |  |  | $ | 140,901 |  |  | $ | 230,383 |  |  | $ | 1,456,108 |
Maturity of the lease liability is as follows:
Summary of maturity of lease liability |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | June 30, 2021 |
|  | Kokomo Lease |  |  | Valparaiso Lease |  |  | Merrill Lease |  |  | Tuscaloosa Lease |  |  | Birmingham Lease |  |  | Total |
Fiscal year ending March 31, 2022 |  | $ | 67,812 |  |  | $ | 100,706 |  |  | $ | 83,938 |  |  | $ | 54,000 |  |  | $ | 54,000 |  |  | $ | 360,455 |
Fiscal year ending March 31, 2023 |  |  | 94,172 |  |  |  | 134,274 |  |  |  | 201,450 |  |  |  | 72,000 |  |  |  | 72,000 |  |  |  | 573,896 |
Fiscal year ending March 31, 2024 |  |  | 98,880 |  |  |  | 100,706 |  |  |  | 201,450 |  |  |  | 72,000 |  |  |  | 72,000 |  |  |  | 545,036 |
Fiscal year ending March 31, 2025 |  |  | 101,292 |  |  |  | – |  |  |  | 201,450 |  |  |  | 30,000 |  |  |  | 72,000 |  |  |  | 404,742 |
Fiscal year ending March 31, 2026 |  |  | 50,646 |  |  |  | – |  |  |  | 184,664 |  |  |  | – |  |  |  | 72,000 |  |  |  | 307,310 |
Fiscal year ending March 31, 2027 |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 6,000 |  |  |  | 6,000 |
Present value discount |  |  | (76,623 | ) |  |  | (37,290 | ) |  |  | (183,166 | ) |  |  | (31,639 | ) |  |  | (70,639 | ) |  |  | (399,357 | )
Lease liability |  | $ | 336,180 |  |  | $ | 298,395 |  |  | $ | 689,785 |  |  | $ | 196,361 |  |  | $ | 277,361 |  |  | $ | 1,798,082 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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