NOTE 8 – OPERATING LEASES

12 Months Ended

Mar. 31, 2025

NOTE 8 – OPERATING LEASES

On April 1, 2023, the Company entered into an office lease agreement commencing in May 2023 which expires on April 30, 2028. Under this agreement, the monthly rental payments are $1,650 throughout the term of the lease. On September 6, 2024, the lease agreement was amended to expire November 1, 2024. The Company is required to pay for all utilities used on the premises and has paid a security deposit of $800 which was refunded August 30, 2024. As a result of the lease modification, the right of use assets and liabilities were remeasured as of the date of codification, resulting in the reduction in the ROU assets and liabilities of $59,919, with no material impact on the statement of operations.

A new office lease was entered into on September 28, 2024 and commencing on November 1, 2024. The lease is for five years and ends on October 31, 2029. The rental payments are $1,100 per month. Sewer and water utilities monthly payment of $50 is to be added to the monthly rental payments.

On June 10, 2023, the Company entered into a plant facility lease agreement with a related party commencing June 9, 2023 which expires on June 30, 2028. Under this agreement, the monthly rental payments are $18,000 throughout the term of the lease excepting the month of June 2023 the rent is $7,920. The plant has been approved by the FDA for the production of our OTC drug Xcellderma. Under this agreement, the Company is also leasing the equipment in the plant facility through five (5) annual rent payments of $10,000, which are due on the 15th day of each June from June 2023 to June 2027.

Maturities of lease liabilities for the operating leases as of March 31, 2025, are as follows:

Period ending March 31		Office lease			Plant Facility Lease			Equipment lease			Total

2026		13,200			216,000			10,000			239,200
2027		13,200			216,000			10,000			239,200
2028		13,200			216,000			10,000			239,200
2029		13,200			54,000			—			67,200
2030		7,700			—			—			7,700
Total lease liability	$	60,500		$	702,000		$	30,000		$	792,500
Less imputed interest	$	(11,724	)	$	(99,290	)	$	(3,698	)	$	(114,712	)
Total lease liability	$	48,776		$	602,710		$	26,302		$	677,788

As of March 31, 2025, the weighted average remaining lease term was 3.2 years. Lease liabilities are amortized using the effective interest method using a discount rate of 10%. Depreciation of ROU asset is calculated as the difference between the expected straight-line rent expense over the lease term less the accretion on the lease liability. The Company recognizes a right-of-use asset and a lease liability for these operating leases in its Balance Sheet. The office lease and plant facility lease also includes obligations for the Company to pay for other services, including utilities and maintenance. The Company accounts for these services separately.

During the years ended March 31, 2025, and 2024 the operating lease cost for the plant was $192,771 and $161,462, for the equipment $10,336 and $7,377, and the office $17,050 and $18,150, respectively and is included in general and administrative expenses in the accompanying financial statements.