Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT

v3.8.0.1
PROPERTY AND EQUIPMENT
12 Months Ended
Mar. 31, 2018
PROPERTY AND EQUIPMENT [Text Block]

NOTE 3 – PROPERTY AND EQUIPMENT

Fixed assets consisted of the following at:

    March 31, 2018     March 31, 2017  
Machinery and Equipment $ 2,096,074   $ 1,012,000  
Machinery – Construction in Progress   312,160     185,848  
Machinery under Capital Lease   - 0 -     735,781  
Office Equipment   29,300     79,681  
Leasehold Improvements   - 0 -     3,979  
Less: Accumulated Depreciation   (1,267,899 )   (897,141 )
Fixed Assets, net $ 1,169,635   $ 1,120,148  

Depreciation expense for the years ended March 31, 2018 and 2017 was $418,777 and $359,556, respectively.

On February 1, 2018, we exercised our purchase option to purchase four alkaline generating electrolysis system machines leased under the master lease agreement entered into on October 22, 2014, as amended on February 25, 2015 with Veterans Capital Fund, LLC for a total of $160,000. The purchase price bears interest of 12% per annum and is payable in eleven equal monthly installments of $14,934.00 each and one final installment of $4,040.41, with the first installment due on February 1, 2018 and on the remaining eleven installments due on the first of each month thereafter with the final installment due and payable on January 1, 2019.

The Company paid for equipment to Water Engineering Solutions, LLC, a related party, $- and $104,619 for the years ended March 31, 2018 and March 31, 2017. Water Engineering Solutions, LLC is an entity that is controlled and owned by our former president and chief executive officer, Steven P. Nickolas, and our current president and chief executive officer, Richard A. Wright. The Company no longer has any business relationship with Water Engineering Solutions, LLC and has not engaged in any business with Water Engineering Solutions, LLC, for the entirety of fiscal year 2018.