NOTE 8 – COMMITMENTS AND CONTINGENCIES

Leases

The Company adopted ASC 842 as of November 9, 2019, using a modified retrospective transition approach for all leases existing at December 31, 2019, the date of the initial application. Consequently, financial information will not be updated, and disclosures required under ASC 842, will not be provided for dates and periods before January 1, 2020.

The Company determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are reported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities and other noncurrent liabilities on the Balance Sheets. The Company does not currently have any financing type leases.

Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate. The Company determines the incremental borrowing rates applicable to the economic environment based on the information available at commencement date, in determining the present value of future payments. The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial direct costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the term of the lease.

The Company re-measures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for as a separate contract. The lease liability is re-measured when there is a change in the lease term or a change in the assessment of whether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived asset impairment policy.

The Company accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments made for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration of less than twelve months are recorded directly to lease expense.

The Company leases a 20,880 square foot warehouse facility located at 1135 N. Hickory Ave, Suite 130, Meridian, ID 83642, under a non-cancelable lease agreement, which commenced on October 1, 2024, and expires November 30, 2029. The first two (2) payments were deferred. This lease is accounted for as an operating lease. Monthly lease rates excluding triple net expenses started at $15,660 and increase by 3% from the previous amount in the month of December each year.

The Company leases a 5,016 square foot office facility located at 941 S. Industry Way, Meridian, Idaho, 83642 under a non-cancelable lease agreement, which commenced on October 21, 2024, and expires November 30, 2029. The first payment was deferred. The lease is accounted for as an operating lease. Monthly lease rates excluding triple net expenses started at $5,225 and increase by 3% from the previous amount in the month of December each year.

The Company leased a production printer for 63 months commencing on November 3, 2023. The first three (3) payments were deferred, with the first payment due February 3, 2024. Equipment lease expense was $57,215 for the year ended March 31, 2025, and $43,127 for year ended March 31, 2024.

As of March 31, 2025, accounted for and presented under ASC 842 guidance, the future minimum lease payments on operating leases, were as follows:

Total minimum lease obligation over the next six (6) years

 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

SCHEDULE OF LEASE PAYABLE

Supplemental cash flow information related to operating leases:

 SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO OPERATING LEASES