Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Sep. 30, 2019
Leases [Abstract]  

On June 24, 2019, the Company entered into a service and equipment lease agreement for water treatment services, consumables and equipment. The lease term is for five years, with a renewal option of an additional five years, with a monthly lease payment of $5,000. The Company analyzed the classification of the lease under ASC 842, and as it did not meet any of the criteria for a financing lease it has been classified as an operating lease. The Company determined the Right of Use asset and Lease liability values at inception calculated at the present value of all future lease payments for the lease term, using an incremental borrowing rate of 5%. The Lease Liability will be expensed each month, on a straight line basis, over the life of the lease.


For the three and six months ended September 30, 2019 the lease expense was $15,000, and the amortization of the Right of Use asset was $11,558.