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LEASES
 3 Months Ended
Jun. 30, 2022
Leases [Abstract]  
LEASES

NOTE 2 – LEASES

The Company accounts for the lease of its corporate facility in San Diego, California in accordance with ASC No. 842. The 39-month lease term commenced April 1, 2020, and the lease provides for an initial monthly rent of approximately $12,400 with annual rent increases of approximately 3%. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and certain other operating costs. The right-to-use asset and corresponding liability for the facility lease have been measured at the present value of the future minimum lease payments. A discount rate of 11%, which approximated the Company’s incremental borrowing rate, was used to measure the lease asset and liability. Lease expense is recognized on a straight-line basis over the lease term.

The Company obtained a right-of-use asset of $270,950 in exchange for its obligations under the operating lease. The landlord also provided a lease incentive of approximately $139,000, which was paid to the Company in June 2020, for the Company to make improvements to the leased space. In addition, the Company paid a $100,000 security deposit.

Future minimum payments under the facility operating lease, as of June 30, 2022, are listed in the table below.

Annual Fiscal Years  Operating
Lease		 
2023    118,521 
2024   40,692 
Less:     
Imputed interest    (9,140)
Present value of lease liabilities   $150,073 

 

Cash paid for amounts included in the measurement of lease liabilities was $39,507. Rent expense was $26,921 and $26,884 for the three months ended June 30, 2022 and 2021, respectively.