Commitments, Contingencies, Guarantees and Indemnifications

12 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies, Guarantees and Indemnifications

From time to time, we may become involved in claims and other legal matters arising in the ordinary course of business. Management is not currently aware of any claims made or other legal matters that will have a material adverse effect on our consolidated financial position, results of operations or its cash flows.

We indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. We will indemnify the officers or directors against any and all expenses incurred by the officers or directors because of their status as one of our directors or executive officers to the fullest extent permitted by Nevada law. We have never incurred costs to defend lawsuits or settle claims related to these indemnification agreements.  We have a director and officer insurance policy which limits our exposure and may enable us to recover a portion of any future amounts paid.  We believe the fair value of these indemnification agreements is minimal. Accordingly, there are no liabilities recorded for these agreements at March 31, 2019 or 2018.

In the normal course of business, we provide indemnifications of varying scopes under agreements with other companies, typically clinical research organizations, investigators, clinical sites, suppliers and others.  Pursuant to these agreements, we generally indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified parties in connection with the use or testing of our product candidates or with any U.S. patents or any copyright or other intellectual property infringement claims by any third party with respect to our product candidates.  The terms of these indemnification agreements are generally perpetual.  The potential future payments we could be required to make under these indemnification agreements is unlimited.  We maintain liability insurance coverage that limits our exposure.  We believe the fair value of these indemnification agreements is minimal.  Accordingly, we have not recorded any liabilities for these agreements as of March 31, 2019 or 2018.

Leases

At March 31, 2019 and or 2018, the following assets are subject to capital lease obligations and included in property and equipment:

	March 31,
	2019			2018
Office equipment	$	14,700		$	14,700
Accumulated depreciation		(6,500	)		(3,600	)
Net book value	$	8,200		$	11,100

Amortization expense for assets recorded under capital leases is included in depreciation expense.  Future minimum payments, by year and in the aggregate, required under capital leases are as follows:

Fiscal Years Ending March 31,	Capital Leases
2020	$	3,800
2021		3,800
2022		3,300
Future minimum lease payments		10,900
Less imputed interest included in minimum lease payments		(1,600	)
Present value of minimum lease payments		9,300
Less current portion		(3,000	)
Non-current capital lease obligation	$	6,300

At March 31, 2019, future minimum payments under operating leases relate to our facility lease in South San Francisco, California through July 31, 2022 and are as follows:

Fiscal Years Ending March 31,		Amount
	2020	$	623,900
	2021		645,800
	2022		668,400
	2023		225,300
		$	2,163,400

We incurred total facility rent expense for the fiscal years ended March 31, 2019 and 2018 of $657,900 and $645,800, respectively.

Debt Repayment

At March 31, 2019, future minimum principal payments on outstanding notes related to an insurance premium financing arrangement in the remaining principal amount of $57,300, which will be repaid in monthly principal and interest installments of $6,600 through December 2019.