Quarterly report pursuant to Section 13 or 15(d)

FIXED ASSETS

v3.22.2.2
FIXED ASSETS
6 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
FIXED ASSETS

NOTE 3 – FIXED ASSETS

 

A summary of the fixed assets as of September 30, 2022 and March 31, 2022 is as follows:

 

             
   

September 30,

2022

   

March 31,

2022

 
    (unaudited)        
Land   $ 324,293     $ 324,293  
Buildings     6,633,271       5,611,723  
Machinery and equipment     11,973,337       10,524,343  
Autos and trucks     263,331       247,356  
Fixed assets, gross     19,194,232       16,707,715  
Accumulated depreciation     (4,204,824 )     (1,909,612 )
Fixed assets, net   $ 14,989,408     $ 14,798,103  

 

 

The unaudited condensed consolidated statements of operations reflect depreciation expense of approximately $408,000 and $404,000, and $933,000 and $759,000 for the three and six months ended September 30, 2022 and 2021, respectively.

 

On July 3, 2022, the Company’s building containing its water treatment and purification system in La Coste, Texas (the “Water Treatment Plant”) was completely destroyed in a fire. The Water Treatment Plant is a separate building consisting of approximately 8,000 square feet located apart from the production building which was not damaged. The Company received $700,000 from the insurance company for the claim filed for the fire damage. Due to the damage caused by the fire, the Company has written off approximately $1,764,000 of the fixed assets, and $325,000 of the accumulated depreciation, which, less the $700,000 insurance settlement, has resulted in the recognition of a Loss due to fire in the condensed consolidated statement of operations.