RELATED PARTY TRANSACTIONS |
12 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 9: RELATED PARTY TRANSACTIONS
The Company’s related party transactions include the following:
Lease Arrangements with Back Office Xtensions India Pvt. Ltd.
FP India leases office space in Chennai, India from Back Office Xtensions India Pvt. Ltd. (“Back Office”), an entity owned and controlled by the Company’s Chief Executive Officer and President. Lease payments under these arrangements are recorded as operating lease expense in accordance with ASC 842 (see Note 7). The arrangements include premises located on the first floor (commenced during the fiscal year ended March 31, 2026) and on the third floor of the leased property. Total lease payments amounted to $93,750 and $77,423 for the years ended March 31 2026 and 2025 respectively.
As of March 31, 2026, the right-of-use asset and lease liability associated with these related party arrangements totaled approximately $268,046 and $363,988, respectively. As of March 31, 2025, the corresponding amounts were approximately $285,089 and $371,400, respectively.
Short-Term Loan from Stay in Business Inc.
On June 15, 2023, the Company received an interest-free demand loan of $120,000 from Stay in Business Inc., an entity owned by the Company’s Chief Executive Officer. During the fiscal year ended March 31, 2025, the Company received an additional $13,652 under the same arrangement. During the fiscal year ended March 31, 2026, the Company repaid the entire outstanding balance of $133,652. There was no outstanding balance under this arrangement as of March 31, 2026 (March 31, 2025: $133,652). See also Note 5.
Personal Guarantees and Property Pledged in Connection with Bank Debt
The Company’s outstanding term loan with Fortis Bank is secured in part by certain personal property of directors of the Company, personal guarantees provided by such directors, and a Trust where directors are trustees, in addition to substantially all of the Company’s assets. No fees or other consideration are paid by the Company in connection with these guarantees or pledges.
Other Related Party Matters
Routine compensation arrangements with executive officers and directors are governed by the Company’s Compensation Committee. Information about director and officer compensation is provided in Item 11 of Part III of this Annual Report.
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