Quarterly report pursuant to Section 13 or 15(d)

Lease Receivable

v3.19.3
Lease Receivable
6 Months Ended
Sep. 30, 2019
Lease Receivable [Abstract]  
Lease Receivable
4. Lease Receivable

 

On December 12, 2017, the Company completed the sale of a constructed ENVI-Marine scrubber system under an energy management lease arrangement. The Company’s lease receivable as at September 30, 2019 and March 31, 2019, consists of an amount due from the customer under a long-term lease arrangement.

 

The payments to the Company under the lease arrangement are calculated under a cost savings model. During March 2019, the Company and lessee have agreed to a revised payment schedule based on a quarterly payment of $118,000 per quarter through fiscal 2022 in place of the cost saving model. The current portion presented below reflects the minimum expected payments per the lease arrangement for the next twelve months.

 

At the completion of the minimum required lease payments, the title of the asset transfers to the customer. No amount has been allocated to residual value. Moreover, there are no other variable amounts involved in this lease arrangement.

 

    September 30,
2019
$
    March 31,
2019
$
 
             
Current portion, expected within twelve months, net of charter chargebacks     472,000       309,772  
Amounts expected thereafter     578,667       784,914  
                 
Total     1,050,667       1,094,686  

 

Future lease payments forecasted in annual periods are as follows:

 

    $  
       
2020     472,000  
2021     472,000  
2022     183,114  
Interest deemed hereunder     (76,447 )
         
Total     1,050,667