NOTE 11 – Commitments and Contingencies

Legal Matters

The Company may be involved in legal matters arising in the ordinary course of business including matters involving proprietary technology. While management believes that such matters are currently insignificant, matters arising in the ordinary course of business for which the Company is or could become involved in litigation may have a material adverse effect on its business and financial condition of comprehensive loss.

Employment Agreements

As of March 31, 2023, the Company had employment agreements in place with two of its key executives. These executive employment agreements provide, among other things, for the payment of up to twelve months of severance compensation for terminations under certain circumstances. With respect to these agreements, at March 31, 2023, aggregated annual salaries would be $575,000 and potential severance payments to these key executives would be $862,500 if triggered. On June 16, 2023, the Company entered into new employment agreements with its two key executives, which increased potential severance payments to $1.3 million if triggered.

Related Party Transactions

Ms. Trombly is the Chief Executive Officer of the Company. Ms. Trombly is the owner of Trombly Business Law, PC, which has been retained by the Company to advise on certain corporate and securities law matters. During the years ended March 31, 2023 and 2022, the Company incurred $27,000 and $170,000, respectively, in legal services from Trombly Business Law, PC.