Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.3
Leases
6 Months Ended
Sep. 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      
Operating lease expense*   $ 205,791  
Term and discount rate        
Lease term (years)     4.75  
Discount rate**     4.50 %

 

* Including right of use amortization and imputed interest
** 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     385,510  
2022     385,510  
2023     385,510  
2024     289,132  
Total future minimum lease payments     1,445,662  
Imputed interest     (147,171 )
         
Operating lease obligations     1,298,491