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Leases
 12 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES

NOTE 3 – LEASES

 

W. Bernardo Drive, San Diego, CA

 

The 39-month lease term commenced April 1, 2020, and the lease provides for an initial monthly rent of approximately $12,400 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. A discount rate of 11%, which approximated the Company’s incremental borrowing rate, was used to measure the lease asset and liability. 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.

 

Thornmint Road, San Diego, CA

 

The 48-month lease term commenced February 1, 2023, and the lease provides for an initial base monthly rent of $36,000 with annual rent increases of approximately 4%. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and other certain operating costs. A discount rate of 8%, which approximated the Company’s incremental borrowing rate, was used to measure the lease asset and liability. The Company obtained a right-of-use asset of $1,560,101 in exchange for its obligations under the operating lease.

 

Future minimum payments under the facility operating leases, as of March 31, 2023, are listed in the table below.

 

Fiscal year ending March 31,    
2024  $462,008 
2025   452,275 
2026   470,366 
2027   404,951 
Total future lease payments   1,789,600 
Less: Imputed interest   (244,409)
Present value of lease liabilities  $1,545,191 

 

Cash paid for amounts included in the measurement of lease liabilities was $230,028 and $153,432 for the years ended March 31, 2023 and 2022, respectively. Rent expense was $237,425 and $107,820 for the years ended March 31, 2023 and 2022, respectively.