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 $14,590. The current monthly base rent under the manufacturing component of the lease is $12,824.
The office, lab and manufacturing
leases are coterminous with a remaining term of 24 months. The weighted average discount rate is 4.25%.
As of March 31, 2025, we have
a right-of-use lease asset of $601,846.
The following table presents
a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next two fiscal years. All of
our leases conterminously expire during the fiscal year ending March 31, 2027.
Fiscal Year Ended March 31,
2026
$ 333,462
2027
343,353
Total minimum lease payments
676,817
Less amount representing imputed interest
(27,064 )
Present value of minimum lease payments
$ 649,751
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.