Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
3 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases
7. Leases

 

The Company has one long-term operating lease for office space in London, United Kingdom. The lease commenced on April 1, 2019 and expires December 25, 2023.

 

Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the Company’s operating lease does not provide an implicit rate, the discount rate used to determine the present value of the lease payments is the collateralized incremental borrowing rate based on the remaining lease term. The operating lease asset excludes lease incentives. The operating lease does not contain an option to extend or terminate the lease term at the Company’s discretion. Operating lease expense is recognized on a straight-line basis over the lease term.

 

Lease cost during the three month period:      
Operating lease expense   $ 102,462  
         
Term and discount rate:        
Lease term (years)     4.75  
Discount rate*     4.50 %

 

* The Company determined the discount rate with reference to mortgages of similar tenure and terms.

 

The Company has entered into premises lease agreements with minimum annual lease payments expected over the next five years of the lease as follows:

 

Fiscal Year   $  
       
2020 (remainder of year)     -  
2021     402,432  
2022     402,432  
2023     402,432  
2024     301,823  
Total future minimum lease payments     1,509,119  
Imputed interest     (168,347 )
         
Operating lease obligations     1,340,772