|
NOTE 9. LEASES
We conduct our operations in a leased facility under a non-cancellable lease expiring March 31, 2026. Our lease does not provide an implicit rate, so we used our incremental borrowing rate to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Variable lease costs consist primarily of common area maintenance and real estate taxes which are paid based on actual costs incurred by the lessor. Details of our operating lease are as follows:
| | | Quarter Ended
June 30, 2021 | |
| Operating lease cost | | $ | 42,516 | |
| Variable lease cost | | | 31,028 | |
| Total | | $ | 73,544 | |
| | | | | |
| Cash paid for amounts included in the measurement of lease liabilities | | | | |
| Operating cash flows for leases | | $ | 37,962 | |
| Remaining lease term (in months) | | | 57 | |
| Discount rate | | | 3.5 | % |
The following table presents the maturities of lease liabilities as of June 30, 2021:
| Year Ending March 31 | | Operating Leases | |
| 2022 | | | 114,740 | |
| 2023 | | | 156,121 | |
| 2024 | | | 159,592 | |
| 2025 | | | 163,224 | |
| 2026 | | | 165,947 | |
| Total lease payments | | | 759,624 | |
| Imputed lease interest | | | (59,655 | ) |
| Total lease liabilities | | $ | 699,969 | |
|