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LEASES
 6 Months Ended
Sep. 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 September 30, 2022, are listed in the table below.

Annual Fiscal Years  Operating
lease		 
2023   74,411 
2024   40,692 
Less:     
Imputed interest   (735)
Present value of lease liabilities  $114,368 
      

 

Cash paid for amounts included in the measurement of lease liabilities was $79,014 for the six months ended September 30, 2022. Rent expense was $53,842 and $53,768 for the six months ended September 30, 2022 and 2021, respectively and $26,921 and $26,844 for the three months ended September 30, 2022 and 2021, respectively.