Item 2. Properties
ITEM 2. PROPERTIES
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 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 $14,158. The current monthly base rent under the manufacturing component of the lease is $12,452
The office, lab and manufacturing
leases are coterminous with a remaining term of 36 months. The weighted average discount rate is 4.25%.
As of our March 31, 2024 balance
sheet, we have a right-of-use lease asset of $883,054.
The following table presents a
maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next three fiscal years. All of
our leases conterminously expire during the fiscal year ending March 31, 2027.
Fiscal Year Ended March 31,
2025
323,812
2026
333,462
2027
343,352
Total minimum lease payments
1,000,626
Less amount representing imputed interest
(60,310 )
Present value of minimum lease payments
$ 940,316
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