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Leases

6 Months Ended

Sep. 30, 2023

NOTE 3 – LEASES

W. Bernardo Drive, San Diego, CA

The 39-month lease term expired on June 30, 2023, and, upon expiration, the Company had a $100,000 security deposit receivable from the landlord, which was refunded to the Company during the three months ended September 30, 2023.

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 approximately $1,560,000 in exchange for its obligations under the operating lease.

Future minimum payments under the facility operating lease, as of September 30, 2023, are listed in the table below (in thousands).

Annual Fiscal Years	Operating Lease
2024	$	219
2025		452
2026		470
2027		405
Total future lease payments	$	1,546
Less: Imputed interest		(187	)
Present value of lease liability	$	1,359

Cash paid for amounts included in the measurement of lease liabilities was approximately $257,000 and $79,000 for the six months ended September 30, 2023 and 2022, respectively. Rent expense was approximately $225,000 and $54,000 for the six months ended September 30, 2023 and 2022, respectively and $113,000 and $27,000 for the three months ended September 30, 2023 and 2022, respectively.