6. Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
On March 31, 2015, the Company entered into a two-year industrial/commercial multi-tenant lease agreement with P.G.A. Lawson Limited Partnership, to lease an office and warehouse space. The lease commenced on April 20, 2015 and ends on April 30, 2017. The first years monthly rent is approximately $7,699 and will be increased by 3% to $7,930 per month through the rest of the lease term. The warehouse is located at 829 Lawson Street in the City of Industry, California. Rent expense under this lease will be recognized over the life of the lease on a straight-line basis. Straight-line monthly rent expense over the term of the lease will be $7,812. During six months ended September 30, 2015, the variance between the straight line rent expense and the actual rent paid/abated was recorded as deferred rent at September 30, 2015, totaled $570. The Company immediately sub-leased a portion of the facility to Pefecular Inc., an entity related to one of the major shareholders. The lease is a non-cancelable operating lease with a fixed monthly rent of $5,000. The lease commenced on May 1, 2015 and expires on April 30, 2017. The sublease income for the six months ended September 30, 2015 amounted to $25,000 and was treated as a reduction to the Companys rent expenses. As of September 30, 2015, this related entity owed the Company $11,203.
Total rent expense was $16,583 and $0 for the six months ended September 30, 2015 and 2014, respectively. Total rent expense was $8,828 and $0 for the three months ended September 30, 2015 and 2014, respectively.
Future minimum lease commitments are as follows:
On December 29, 2014 the Company entered into a consulting agreement with MorePro Marketing, Inc., which was submitted to the Securities and Exchange Commission on January 5, 2015. Under the terms of this agreement, the Company agreed to pay MorePro Marketing, Inc. a minimum of $625 per month, plus reimbursement of any expenses incurred by MorePro Marketing, Inc. for the services of search engine optimization, network affiliate marketing, and weblogging services. There is a ninety-day minimum timeframe for each new client to cancel, after which either party can terminate after thirty days notice. The Company currently pays $625 per month. The agreement requires us to give at least thirty days notice if we choose to cancel their services. |