Product Warranties The Companys manufacturer(s) provide the Company with a 2-year warranty. The Company products are sold with a 1-year manufacturers warranty. The Company offers a 1-year extended warranty for a fee. The extended warranty expires at the end of the second year from the date of purchase with warranty costs during the two-year period being born by the manufacturer. As a result, the Company has no, or limited warranty liability exposure. Right of Use Assets and Liabilities (ROU) In February 2016, the FASB issued ASU No. 2016-02 (ASC 842), Leases , to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842 , Leases , ASU No. 2018-11, Targeted Improvements , ASU No. 2018-20, Narrow-Scope Improvements for Lessors , and ASU 2019-01, Codification Improvements , to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company early adopted the provisions of ASC 842 during the fiscal year ended April 30, 2018. On November 15, 2017, the Company entered into a lease for office space. The lease expires on November 30, 2020 and includes an option to extend the lease an additional term of three years. During fiscal year 2018, the Company determined the ROU Asset and lease liability to be $51,063 which compares to the total, undiscounted cash flow payments of the initial three-year term of $61,200. As of April 30, 2018, since the right of use asset and lease liability were the same, no adjustment to retained earnings was required. The company determined that there was no discount rate implicit in the lease. Thus, the Company used its incremental borrowing rate of 12% to discount the lease payments in the determination of the ROU asset and related lease liability. Rent is $1,650 per month and is increased each anniversary by 3%. The Company paid a $1,650 security deposit. In connection with the lease termination noted below, the $1,650 deposit was recognized as rent expense on May 1, 2019. On May 1, 2019, the Company and its landlord mutually agreed to terminate the outstanding lease. The following summarizes the lease termination: Operating lease assets - termination date - May 1, 2019 $ 29,208 Operating lease liabilities - termination date - May 1, 2019 29,811 Operating lease assets and (liability) - net - termination date - May 1, 2019 (603 ) Gain on lease termination 603 Operating lease assets and liability - net - October 31, 2019 $ - We recognized lease expense on a straight-line basis over the term of our operating leases, as reported within general and administrative expense on the accompanying Consolidated Statements of Operations. During the three months ended October 31, 2019 and 2018, operating lease expense was $0 and $5,100, respectively. During the six months ended October 31, 2019 and 2018, operating lease expense was $0 and $10,200, respectively.