What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2023-06-28 compared with 2022-06-28 · 38 added, 34 removed, 4 unchanged (95% of the section changed)

Office and Lab Space Leases

In December 2020, we entered

into an agreement to lease approximately 2,823 square feet of office space and 1,807 square feet of laboratory space located at 11555

Sorrento Valley Road, Suite 203, San Diego, California 92121 and 11585 Sorrento Valley Road, Suite 109, San Diego, California 92121, respectively.

Office, Lab and Manufacturing Space Leases

In December 2020, we entered into

an agreement to lease approximately 2,823 square feet of office space and 1,807 square feet of laboratory space located at 11555 Sorrento

Valley Road, Suite 203, San Diego, California 92121 and 11575 Sorrento Valley Road, Suite 200, San Diego, California 92121, respectively.

The agreement carries a term of 63 months and we took possession of the office space effective October 1, 2021.

We took possession of

the lab space effective January 1, 2022.

On October 1, 2021, we recorded

a $343,633 right-of-use lease asset and associated lease liability related to the office space component of the lease based on the present

value of lease payments over the expected lease term of 63 months, discounted using our estimated incremental borrowing rate of 4.25%.

The current monthly base rent under the office component of the lease is $6,121.

During the three months ended

March 31, 2022, we recorded a $400,797 right-of-use lease asset and associated lease liability related to the lab space component of the

lease based on the present value of lease payments over the expected lease term of 63 months, discounted using our estimated incremental

the laboratory space effective January 1, 2022.

In October 2021, we entered into another lease for approximately 2,655 square feet of

space to house our manufacturing operations located at 11588 Sorrento Valley Road, San Diego, California 92121.

The term is for 55 months

and we took possession of the manufacturing space in August 2022.

The current monthly base rent under the office and laboratory component

of the lease is $13,772.

The current monthly base rent under the manufacturing component of the lease is $12,080.

During the fiscal year ended

March 31, 2023, we recorded a $625,471 right-of-use lease asset and associated lease liability related to the manufacturing space component

of the lease based on the present value of lease payments over the expected lease term of 55 months, discounted using our estimated incremental

borrowing rate of 4.25%.

The initial monthly base rent under the lab component of the lease is $7,456.

Manufacturing Space Lease

In October 2021, we entered into another lease

for an initial period of 58 months for (i) approximately 22,260 square feet of space located at 11588 Sorrento Valley Road, San Diego,

California 92121, or the Building, and (ii) 2,655 square feet of space located in the Building and commonly known as Suite 18, to house

our manufacturing operations.

That manufacturing space is located at 11588 Sorrento Valley Road, San Diego, California 92121 and it is

near our new lab and office locations.

We anticipate that the landlord will complete construction on this new space in the third calendar

quarter of 2022 and we will take occupancy at that time.

The initial base rent for the manufacturing space will be $12,080 per month.

Based on the assumptions that

we used to calculate the right-of-use lease asset for the new office and lab spaces, we estimate that we will record a right- of- use

lease asset of $614,240 and associated lease liability for the manufacturing space lease when we take possession of that space.

The office, lab and manufacturing

leases are coterminous with a remaining term of 48 months.

The weighted average discount rate is 4.25%.

As of our March 31, 2023 balance

sheet, we have a right-of-use lease asset of $1,151,909.

following table presents a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next

four fiscal years.

All of our leases conterminously expire during the fiscal year ending March 31, 2027.

Fiscal Year Ended March 31,

Total minimum lease payments

Less amount representing imputed interest

Present value of minimum lease payments

Mobile Clean Room

In addition, we rent a mobile

clean room on a short term, month-to-month basis, where we house our manufacturing operations until our permanent manufacturing space

is completed.

We also rent the land on which the mobile clean room is based on a month-to-month basis.

The mobile clean room is located

on leased land near our office and lab and we pay $2,000 per month for the right to locate it there.

We paid approximately $189,000 in

rent expense to lease the mobile clean room located on this space during the fiscal year ended March 31, 2022.

In addition, we rented a

mobile clean room on a short term, month-to-month basis, where we housed our manufacturing operations until our permanent manufacturing

space was completed.

The mobile clean room was located on leased land near our office and lab and we paid $2,000 per month for the right

to locate it there.

We paid approximately $168,171 in total rent expense to lease the mobile clean room located on this space during

the fiscal year ended March 31, 2023.

The arrangement was terminated in September 2022 and the mobile clean room was returned to the

vendor that leased it to us.

Overall, our rent expense, which is included in general and administrative expenses, approximated $519,000

and $401,000 for the fiscal years ended March 31, 2023 and 2022, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties