Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE

The following is a summary of activity of Level 3 liabilities during the year ended March 31, 2022 and 2021:

 

Derivatives

 

    2022     2021  
Derivative liability balance at beginning of period   $ -     $ 176,000  
Reclass to equity upon conversion or redemption     -       (205,000 )
Additions to derivatives     12,985,000       -  
Change in fair value     116,000       29,000  
Balance at end of period   $ 13,101,000     $ -  

 

At March 31, 2022, the fair value of the derivative liabilities of convertible notes was estimated using a bi-nomial model with the following weighted-average inputs: the price of the Company’s common stock of $0.225; a risk-free interest rate of 2.28% and expected volatility of the Company’s common stock of 109.47%, and the remaining term of 1.75 years.

 

Warrant liability

 

    2022     2021  
Warrant liability balance at beginning of period   $ -     $ 90,000  
Additions to warrant liability     5,910,000       -  
Reclass to equity upon cancellation or exercise     -       (90,000 )
Change in fair value     (1,987,000 )     -  
Balance at end of period   $ 3,923,000     $ -  
SCHEDULE OF ESTIMATED USEFUL LIVES

 

Buildings     39 years  
Machinery and Equipment     7 – 10 years  
Vehicles     10 years  
Furniture and Fixtures     3 – 10 years